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Chosen Organization: Apple

1. Business Model Analysis

Apple tries to develop its Business Model in such a way so that they are able to increase the sales of technology that is produced by the company. Apple is famous for its knowledge in the field of production of Hi-tech hardware and software. Apple has three main products that represents the company all over the world (Kang, Burdon & Mooney, 2019). They are iPhone, iPad and Mac. On the other hand Apple develops a range of software that are used by all of their products. Few OperatingSystems that are developed by Apple are iOS, macOS, watchOS and tvOS. Other services that are provided and promoted by Apple include Digital Content and Services, iCloud, Apple Care and Apple Pay. There are few other range of products that have been developed by the company however are sold in less amounts compared to other product ranges of the company. In order to sell their products Apple chooses their direct distribution channels and few indirect distribution channels all over the world by employing them to sell their products. These indirect sellers contain network carriers, wholesalers, retailers and value added resellers. Sales from indirect channels is comparatively more as the company is not able to provide direct sellers in all countries of the world (Pomykalski, 2019). As per the reports that have been collected it is seen that the company has been able to make a trillion dollar profit with the sales of these products that have been mentioned. Apple aims to provide the best services and products to all people all over the world and develop their business model in such a way so that the customers are satisfied.

1. SWOT Analysis of Apple

Strength Weakness
  • strong brand image
  • high profit margin
  • innovative and rapid growth process
  • Distribution network is limited
  • High value selling price
  • Sales on high market segments
  • Network distribution expansion
  • Sales value depend on demand trend
  • New product line development
  • Competition aggression
  • Imitation
  • Increase in labor cost

SWOT analysis on Apple Inc. emphasize on the weakness of the company that might need to set development strategy in order to overcome with the barriers of organizational growth. Based on Apple strength, business current condition can be determined; the above table has illustrated factors of strength in Apple Inc (Kim, 2018: pp 1250). the company is capable to introduce profitable new products by considering its strong brand image. 4Ps related to Apple assists to forecast its premium pricing strategy, which rise with high level of profit margin. Therefore, internal factors can be considered as a major factor that influences highest profit margin even with limited access to sales volume.

Since Apple has limited network distribution channel, based on SWOT analysis framework, this limited network distribution can be considered as major factor that limits market research effectively. Due to its premium pricing strategy company suffers with a weakness of dependence on high-end market segment sales.

Lamb et al. (2018), internal strategic factor of Apple Inc are considered as weakness, since high-end market segments represents global market minority. Based on weakness internal factor, SWOT aspects with respect to apple Inc. distribution and pricing strategy represents business limitation.

Opportunity is referred to an external factor that represents organizational environment. Company is capable to increase its product line and its sale volume throughout aggressive market competition arena. Apple has currently high and successful product line that can impose organization good health with new product development (amazingherald.com, 2019). SWOT analysis indicates Apple has scope for future growth.

Aggressiveness of other existing firms among the same industry is considered as a competitive environment. Apple intends to company like Samsung, which is also a reputable organization among same industry with high brand image (Elsbach & Stigliani, 2018). Existing large firms and local markets influences Apple design and features of its products. Based on SWOT analysis, apple could perform more better way with effective development strategy by considering innovation in its product design.

3. Operational Changes adopted by Apple

Apple Inc.’s operation management includes an operational management decision which ensures business running status. Apple imposes to implement creative design with its product; this company excels in the design related to its technological product (macrumors.com, 2019). The respective company has high quality standard that caters in different area of business such as: retailing, online marketing, and industrial design and management as well. Recently Goldman Sachs group has announced to jointly launch credit card paired with iPhone. This card will be linked with Apple Wallet app, with the presence of this application it will be possible to set certain spending goals, reward tracks and manage balance. In addition, the new card will be facilitated to employee in order to test.

4. CSR Activities followed by Apple

Apple Inc. use to take care of people those who help to build their products. Based on CSR policy, the organization use to consider its supplier to a high value standard in order to ensure equality among employees and reflects organizational dignity and respect. Since, from 2008 around 3.6 million employees related to supply are engaged with education program. This program has been considered and organized in order to cater with effective 5 learning skills to the suppliers along with their career options (apple.com/au, 2019). Therefore based on Apple CSR policy and settings, it can be considered that this organization is dedicated toward social responsibility.

5. Comparison of Apple with Amazon

Recent reviews states that Amazon has comparatively lost money on the other hand apple availed tons of money. Amazon revenue grew around 24% in 2013 and lost 1% of growth of its net sales around 17$. Since, 2017 Apple iPhone business has attained more revenue in comparison to Amazon (refer to appendix 1). Current ranked in third among the fortune 500 along with two business segment and ranked themselves within 100 companies among the 100 top companies. During the year 2017, around $ 141.3 billion revenue has been availed in terms of fiscal company year, which represents 12th place within fortune’s list among Amazon (qz.com, 2018). This year generated $ 146.9 billion and $135.9 billion.

Reference list

Elsbach, K. D., & Stigliani, I. (2018). Design thinking and organizational culture: A review and framework for future research. Journal of Management, 44(6), 2274-2306

Kang, K., Burdon, S., & Mooney, G. (2019). Innovation Cultural Factors in Australian Business Environment: IT Organizations in Australia. In Handbook of Research on Contemporary Approaches in Management and Organizational Strategy (pp. 129-145). IGI Global.

Kim, S. K. (2018, December). Developing the Strategies for AI Products based on the Technology Decomposition Framework. In 2018 IEEE International Conference on Industrial Engineering and Engineering Management (IEEM) (pp. 1250-1254). IEEE.

Lamb, C. W., Hair Jr, J. F., McDaniel Jr, C., Summers, J., & Gardiner, M. (2018). Mktg4. Cengage AU.

Pomykalski, P. (2019). Revenue and Valuation of Companies with Digital Platform Business Models. Management Sciences. Nauki o Zarządzaniu, 24(1), 11-18.


apple.com/au (2019), Supplier Responsibility retrieved from

qz.com (2017) IT'S A FORTUNE, retrieved from https://qz.com/1119147/apple-is-two-fortune-100-businesses-and-three-fortune-250-businesses-in-one-aapl/


macrumors.com (2019) Apple's new lower-cost flagship device, available now. retrieved from

amazingherald.com (2019), Latex Paint Market 2019 Industry Trends, Sales, Supply, Demand, Analysis & Forecasts to 2025 retrieved from


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