- 05/04/2013
- Posted by: essay
- Category: Free essays
The SWOT matrix allows to generate 4 directions for possible strategies: S-O strategies, pursuing opportunities allowing to use the strengths of the company, W-O strategies, aimed at using the opportunities to overcome the weaknesses, S-T strategies, where the strengths of the company are used to mitigate the threats, and W-T strategies, focused on the defensive plan of preventing the weak sides of the firm in order to minimize external threats (Griffin, 2011).
The S-O line of solutions for Apple includes the use of their innovative abilities to expand into new markets (and to create the new markets). The success of iPad and iPad2 proves the success of this approach (Kurtz, 2010), and the ability of Apple to generate new demand rather than to compete at the existing markets. Another S-O strategy is to set high requirements for the new apps and to make them publicly available. Steps towards pursuing this strategy have also been done by Apple by creating licenses and toolkits for developers (Kurtz, 2010), and for letting them publish the software in the online store. Setting higher criteria for the software might be the continuation of this strategy and will also strengthen the position of Apple as a company providing delightful products to their customers.
Regarding the W-O direction, Apple can expand the functionality of the iPhone by reducing the limited software accessibility and making less stringent rules for the suppliers. Allowing their devices to change carriers will also add value to Apple devices. The perception of “expensiveness” prevents certain groups of customers from buying Apple products, and a great W-O strategy will be to decrease prices for certain lines of Apple products (or for older products); this will help to address new market segments.
S-T strategy for Apple can be based on the use of strong market position of Apple and their innovative ability to address threats from close competitors and to drive innovation further, thus keeping the attention of the public on Apple products. Finally, the W-T strategic direction should reduce the perception of Apple products as extremely expensive and position the iPhones (and newer Apple devices) as great business-class devices, which will help to gain competitive advantages over main competitors such as Samsung, Nokia and HTC.
References
Griffin, R.W. (2011). Fundamentals of Management. Cengage Learning.
Kurtz, D.L. (2010). Contemporary Marketing 2011. Cengage Learning.
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