OGL 355 Leading Organizational

Innovation and Change:

SWOT Analysis
Objectives:
1. Define SWOT Analysis.
2. Complete a SWOT Analysis Table.
3. Demonstrate understanding of each SWOT Element as it relates to your Case Study.

Complete the following and turn in as a team assignment. There is no need to create any other
document, just complete this one, save as, and post for your team. Everyone earns the same
grade unless consequences of non-participation are enacted (see Worksheet 1b, #2). Make sure to
support your ideas, cite from the textbook, other course materials, and your research per APA
guidelines and as necessary. Minimums are set to ensure support for your discussion, while most
responses will need some type of support to add strength and validity. It is important to cite
definitions, and to earn Excellent the ideas need to be supported with source too. These
responses need to be based in some fact, not just the team’s opinion.

1) What is a SWOT Analysis?

SWOT stands for strengths, weaknesses, opportunities, and threats. A SWOT analysis
creates a frame of your current state as a company. This analysis is a tool that can help you
identify what your strength is now and where you want to be in the future and should be used
before deciding on a new strategy (Mind Tools, 2022). Strengths and weaknesses are considered
from our internal perspectives, while opportunities and threats are external perspectives. The best
way to build a SWOT analysis is to be in a room where the team can brainstorm together.
Internal perspectives should be taken from the perspectives of the employees and customers as
well as key performance indicators. External perspectives would come from industry, market,
and competitors’ perspectives (OnStrategy, 2016). After the SWOT analysis is broken down by
quadrant, refining each point and using the most impactful ideas will be beneficial (Mind Tools,
2022).
 2) Complete the below SWOT Analysis Table with short 1-3 word phrases

Strengths [Internal] Weaknesses [Internal]

● Strong Brand Recognition ● Premium Prices

● High Quality Products ● Operating System Incompatibility
● Proficient Research & Development ● Highly Interdependent
● Expansion in Services ● Limited Customization Options

Opportunities [External Influence] Threats [External Influence]

● Not Outsourcing Manufacturing ● Increasing Industry Competition

● Expanding Subscription Services ● Significant Market Change
● Expanding Entertainment Market ● Backdoor Mechanism
● Electrical Car Market ● Lawsuits

3) List why the team has chosen two of the strength selections with at least 1
source to earn excellent, with other support as needed per APA Guidelines.
a. Strong Brand Recognition.
 In 2022, Apple became the number one ranking on the Kantar BrandZ Most
Valuable Global Brands 2022. Apple has a variety of products such as phones,
watches, laptops, tablets, and a streaming service that resonate with consumers
(Neudecker, 2022). This loyal customer base continues to grow due to its
innovative products, design quality, and user experience (Pereira, 2023).

b. High Quality Products

Apple products are known for typically outliving their competitors because of
their high-quality hardware and software. Apple makes hardware that is carefully
designed, manufactured, and assembled as well as having software that is
optimized to be used with their hardware since they don’t need to design for other
devices. As a result, the end product is durable and high-performing (Ibrahim,
2022).

4) List why the team has chosen two of the weakness selections with at least 1
source to earn excellent, with other support as needed per APA Guidelines.
a. Premium Prices
With the high pricing for Apple products, they generally are not accessible to
lower class consumers as they are seen to be a luxury item (Gupta, 2023). If
Apple doesn’t address their internal pricing strategy to be more inclusive, Apple
risks contraction of demand where the demand falls due to the increase in price
(Extension and contraction of demand, n.d.).

b. Operating System Incompatibility

Another internal weakness of Apple is the interdependence of the IOS software
with Apple hardware. At first, it may have been a strength as Apple was releasing
groundbreaking technology products, however it has since become more of a
burden and weakness. The influx of like-products and further groundbreaking
technology from companies like Google and Samsung have turned the feeling of
exclusivity into more of a hindrance due to IOS not operating to its full potential
with competitors hardware and competitor software not being compatible with
Apple hardware. When a customer enters the Apple universe, they as a result
confine themselves strictly to Apple products, which in the ever advancing
technological world is a weakness (Gupta, 2023).

5) List why the team has chosen two of the opportunity (external influence on
the organization, not something the organization would initiate) selections with at
least 1 source to earn excellent, with other support as needed per APA Guidelines.
a. Not Outsourcing Manufacturing
When Covid hit and resources became scarce due to outsourced components it
made it difficult for Apple to build their products. With scarcity it also meant
 prices increased, so in order to prevent this Apple needs to make products in
house which would allow them to have “complete control of its own supply chain
by designing components in house” (Hertz, 2023). This would allow Apple to
have control of all their components and capitalize on the opportunity to be able
to sell these components to other companies along with their current inventory of
products.

b. Electric Car Market

S&B Global Mobility is forecasting that electric car sales in the US can reach up
to 40% by 2030 (Colato & Ice 2023). This is an opportunity for Apple to create an
electric smart car with the resources it has in its technology. This is a great market
in which it can outtake the main electric car manufacturer Tesla Motors and take
control of the electric car market. A great start down this path would be
integrating current Apple technology into existing smart cars with the eventual
goal of branching out into the electric vehicle market.

6) List why the team has chosen two of the threat selections with at least 1
source to earn excellent, with other support as needed per APA Guidelines.
a. Increasing Industry Competition
While Apple has solidified itself as a brand, the development of new technology
from other companies like Google and Samsung begin to pose a serious threat to
Apple. As the competition grows Apple will have to continue to develop new
technology, and adjust pricing and strategy in order to stay ahead of its
competitors (Gupta, 2023).

b. Significant Market Change

Within the smartphone market there has been a significant change in market
penetration. Companies like Android currently hold around 72% of the market
share whereas Apple is at about 24% (Gupta, 2023). Secondly, due to the higher
tariffs and increased overall cost for the products on the US government, there has
been a negative impact. The product's gross margins are impacted and results in
more expense for customers. On top of this there are many external factors, rising
inflation rates, higher tariffs all of which can reduce the demand amongst
customers if they can not afford apple products (Pereira, 2023).
References

Colato, J., & Ice, L. (2023, February 2). Charging into the future: The transition to electric
vehicles. Bureau of Labor Statistics.
https://www.bls.gov/opub/btn/volume-12/charging-into-the-future-the-transition-to-
electric-vehicles.htm
Extension and contraction of demand - Managedstudy.com. (n.d.).
https://www.managedstudy.com/micro/extension-and-contraction-of-
demand.htm#:~:text=There%20is%20contraction%20of%20demand,the
%20demand%20is%2040%20kilograms

Gupta, S. K. (2023, April 30). Apple SWOT 2023: SWOT analysis of Apple. Business
Strategy Hub. https://bstrategyhub.com/swot-analysis-of-apple-apple-swot/

Hertz, J. (2023, January 11). Apple’s Exodus From Outsourcing Continues With Plans to
Drop Broadcom Chips. All About Circuits.
https://www.allaboutcircuits.com/news/apples-exodus-from-outsourcing-continues-
with-plans-to-drop-broadcom-chips/#:~:text=Apple's%20Gradual
%20Departure%20From%20Outsourcing&text=Instead%20of%20relying
%20on%20the,by%20designing%20components%20in%2Dhouse

Ibrahim, H. (2022, April 15). 9 Reasons Why Apple products are so expensive. MUO.
https://www.makeuseof.com/why-apple-products-are-so-expensive/

Neudecker, N. (2022, June 23). Why Apple is the most valuable brand in the world. Kantar.
Understand People. Inspire Growth.
https://www.kantar.com/north-america/inspiration/brands/why-apple-is-the-most-
valuable-brand-in-the-world

OnStrategy I Virtual Strategist. (2016, October 19). How to Perform a SWOT Analysis
[Video]. YouTube. https://www.youtube.com/watch?v=I_6AVRGLXGA

Pereira, D. (2023, March 3). Apple SWOT Analysis

https://businessmodelanalyst.com/apple-swot-analysis/#:~:text=Apple
%20Weaknesses,-Expensive%20products%20and&text=Apple%20Inc.%20is
%20known%20for,other%20otions%20similar%20in%20features.

Mind Tools. (2022). SWOT Analysis. https://www.mindtools.com/amtbj63/swot-analysis