Ch. 2 - Strategic Planning for Competitive Advantage

Apple is the world's largest information technology company by revenue and the world's second-largest mobile phone manufacturer. Apple’s mobile phone, iPhone has taken the world by storm through its amazing iOS operating system along with its incredible design, since 2007. It was the first truly called “smart phone”. Having established a strong brand value, Apple iPhone still has a strong ongoing influence in the smartphone industry. Here is the SWOT analysis of Apple iPhone.

All generation of iPhones upto iPhone 6.

Strengths

• Brand Loyalty: An Apple loyal customer will proudly proclaim in front of the whole world that he is an ‘APPLE guy’ and will have an extensive debate with you, just to prove that Apple is better than Samsung. Apple’s customers are so loyal that they sold out the entire unit of their least innovative smartphone, iPhone 7 plus, in just 20 minutes from its pre-order inaugural. The brand loyalty of Apple iPhone user can be compared with that of Harley Davidson brand loyalists. Just like the HOGs, Apple customers proclaim themselves as proud iPhone owners. 
• Wide Developer Network: Google play came long after the Apple developer network. Before Google play or android even started, Apple had thousands of applications and games made and maintained through its developer’s network. Apple developer community is one of the strongest online community till date.
• Incredible Design: Thanks to Jonathan Ive, who was able to put Steve Jobs vision onto papers and create unique looking iPhone and also other various Apple products. Apple’s amazing design has been a driving force for many of the smartphone users to switch to iPhone.

Weaknesses 

• High Price: Apple’s products are expensive. Compared to their closest and biggest rival Samsung, iPhones charges its customers more for the same features. Due to increasing pressure from its competitors, Apple has now started to offer financing options and also phone upgrade options.
• Restrictions: There are many unnecessary restrictions on iPhones. There is no option for expandable memory, also the battery is non-removable. With such a high priced phone, customers expect more liberty. It also has restriction on choice. Unlike Samsung, they only have one option for mobile phone. iPhone lacks variety.

Opportunities  

• Market Potential: Smart phones are the rage nowadays and the market has no signs of getting any smaller in near future. With billions of smartphones users worldwide, Apple has great prospect to expand their market in satisfying their demand. There is plenty of market left to be covered in Asia. Also, People around the world are getting more and more depended on their phones for everything and Apple has an opportunity to fulfill their wants.

Threats 

• Android: The single biggest threat to Apple’s iPhone is the Android operating system. Google has taken the world by storm with its mobile operating system and android is poised to grow even further because it is free for all and an open-source OS.
• Samsung: Another threat to Apple’s iPhone is Samsung. With it’s large arsenal of mobile phones coming in all shapes, size and price, Samsung has made it convenient for lot of people. Samsung had really shown the world the power of android phones and has also brought android OS in cameras as well. Samsung is Apple’s biggest competitor with almost 21% of market share in mobile phones industry, as compared to Apple at second place with 10%.