Swot Analysis

West can easily beat competitors in field of customers attraction, company that boards its customers according to socks or shoes color, or even allows free flies for people with name “Love” or “Heart” on Valentine’s Day. Better seat utilization with the smaller aircrafts with 100 seats can provide high-occupancy and could be more profitable compared to sass Boeing aircrafts with 140 to 160 seats. Regarding to emulation of Southwest Airlines’ model of business, more specifically, employees of West take part in profit sharing. This strategy rises feeling of ownership of employees and.

Weaknesses: As a company, West does not show a lot of weaknesses. However,the lack of international and Trans-continental flights in the world of rapidly rising economies, international business and marketplaces be count as a weakness. Customers may not be provided with the international destination they are looking for and could be turned to competing airlines. When higher-class travelers are looking to fly with some added comfort and special service, West does not provide any sort of first class seating which can be a factor of lost business.

However, December 2012 West launched”premium economy’ class flights program, which is designed to satisfy particular customer’s demands with extra legroom and services. Travelers have also dissatisfied with the fact of lack offsets for larger passengers, baccalaureates airplane’s seats aren’t big enough. Moreover, some passengers do not agree with the West Soot Analysis By Quinine addition, Due to small crafts West may become a victim of stereotype of low-cost, low-fare, and short-haul scheduled air carrier only.

Opportunities: West became one of significant air transportation companies since its birth in 1996. After conquering all Canadian destination, West have chance to compete in the international scene. Today it has not that many destinations outside of North America, nevertheless with this strategy possession of their fleet with 53 new aircrafts to support increased demand West bets to be in the top 5 international airline companies by 2016. Also, West plans to take advantages of the Internet resources, such as Backbone, Twitter to grow company’s loyalty and to gain better establishment in the market.

Moreover, West started new loyalty program that will help typewrote credit card numbers of frequent flyers. Len addition, West signed agreement of collaboration with Air France company adopting their fleets to European destinations using Boeing 737 crafts, that could help to get along well in the international competition. The main competitor of West Jet Company is another Canadian carrier Air Canada, which is appeared as the leader of Canadian air transportation market. However, comparing to Air Canada, West has a row of benefits, such as: reasonable ticket fare, innovative approach to connection with travelers.

West’s employees always try to create the cheerful atmosphere during flights. By their calculations, the company is going to be one of the five most successful international airlines in the world providing their guests with experience that will change air travel forever. Moreover, they truly can become number one Canadian carrier ahead Air Canada; however, entering international market West can face a number of problems such as increasing of fuel cost or shortage of aircrafts in their fleet. Threats: The airline industry is Just one part of a bigger transportation industry.

West’s potential customers all face the alternative option of different transportation such as bus lines, train systems, ferry services, and driving their own vehicle. Customers also have the choice of flying with a competing airline, which is a major threat because some people prefer airlines such as American Airlines, Air Canada or other one. This only becomes a bigger threat for West as they move more into the international system, having to compete with larger more experimentation’s all over the world.

The broader environment provides huge threats towards West due to the small margin of revenue to operation cost. The rising cost of fuel proposes many problems, as West must raise prices to stay profitable against fuel, as well as dealing with unstable economy that reduces demand. As the experience in 1 1 September 2001 the threat of terrorists is still out there, and holds the potential to cause many problems toward West and their service of flying. Any possibility of natural phenomenon could easily affect flights systems and demand of customers.

Due to hybrid model from discount no-frills to Hotpot strong strategy adding different shtick. 4. How to solve problems Works Cited Tim, Paul R. Customer Service: Career Success Through Customer Loyalty. Fifth Edition. Prentice Hall: Pearson Du. , 2011. Print. Http://www. Straight. Com/bologna/ can’t-afford-first-class-west]et-set-offer-premium-economy-seating “West reports record full-year earnings per share of $1. 78, up 68 per cent. ” – 6 Feb.., 2013. Web. 12 June, 2013

Siemens has focused in technological achievement, international, reliability and quality. Siemens has coupled innovative concepts and creative ideas with future-sighted willingness and taking in business risk to make the company strong. Siemens brand can be reflected around the globe because of its sustainability, technology and financial leaderships, market leadership and values.

Global presence

As Siemens maintain the Regional Companies directly at their customer’s location.

The employees of Siemens will represent Siemens in the employees’ countries in order to maintain contact to customers across their sectors. By equipping with technologies from different Siemens Sectors and Divisions, this approach pays off particularly well in major projects such as hospitals, airports and sport stadiums.

Value creation can be seen as an integrated process extending from the supplier to the customer. Even under challenging circumstances, their outstanding network of suppliers ensures reliable delivery.

Technology and innovation Siemens everyday activities emphasis what it means to be an integrated technology company.

At their Corporate Technology Department, Siemens employees Join forces cross Sector for instance to create tomorrow’s technologies today. They are exploiting synergies to drive technological progress and technology transfer throughout their organization. Their people are continually contributing to their success everywhere at Siemens by exchanging innovative ideas and solutions.

Portfolio management Siemens is one of the strong financially company in an outstanding competitive position, they can target their portfolio and investments specifically to attractive growth markets. Even in economically difficult times, their financial clout has proven its worth of a longstanding

strength of Siemens.

Cross-business initiatives As a whole, they are ensuring a continuous transfer of knowledge and experience on all topics that affect Siemens to enable them to fully leverage the potential of their integrated technology company.

Their service business is a prime example here. The segment in which they are expanding now on their service business are profiting from the outstanding culture in place already with other organization units.

Threats:

New entrants The entrant barrier of this industry is high as the equipment is of high technology. Siemens faces intense competition across its market segments. Siemens is big brand ND having good capital to capture small market too. In all sectors of business environment new competitors are increasing rapidly and some of them find success and some are not.

Siemens, Samsung, Toshiba, L ; T and other big corporations have covered small rural areas and sold their products at very comparative price as well. New entrants are having less scope to capture market against these big giants because of lack of capital and resources.

Economics:

Siemens soot analysis By written provides products that are considered more necessary to customers because Siemens is mostly in high-tech industries. Recently the economic crisis has also had a negative effect on Siemens’ stock price over the past month.

It is not economically feasible for it to be completely focused in one or more particular areas Though Siemens’ large size is an advantage in many ways, it is also a potential liability. In one or more particular areas, it is not economically feasible for it to be completely focused on.

Environmental and other government regulations

In Siemens, the new regulation of producers of electrical and electronic goods financially responsible for specified collection, recycling, treatment and disposal of sat and future covered products post sizeable costs and liabilities to Siemens.

However, there are small companies are gaining market share by their products with a lower price and this is making the competition more intense. Because of the global economy has not fully recovered from the financial crisis, therefore the market has not fully recovered as well. Other than that, it is very difficult for Siemens to get new funding as the credit is still tight from external capital market. Threat of substitutes The competition between Siemens and other company is much more higher than there industries as Siemens is a huge industry with different sectors.

In this industry, Siemens competes with big players such as General Electric (GE) of Fairfield, Con. , and ABA of Switzerland. It happens when customers find different way of doing what they do. And this kind of things reduces their product demand. GE has a strong market position in this industry, while ABA has great advantages in power generation and transmission. Because of this reason Siemens has started to invest more and more money in research and development to find more and more advance technology and uniqueness in their product.

SWOT ANALYSIS

Strengths

Cover a large variety of follower amongst younger drinkers (urban tribes): even with usually disparate brand loyalties consumers. Its consumers are from several types of young people: it allows to have more consumer, even all type of young consumers Techno parade followers: cailleras, skaters and techno-heads Tramp, winos and addicts

Youths in city suburbs
Non-common product:
Capacity to intoxicate after only a couple of gulps.
Fast track route to drunkenness: more efficient, more expedient Impressive alcohol content
Good fight against competition:
The company sell three can for every can sold by Heineken and Kronenburg. Low price – about £1 cheaper than the competition
The first to packages in 50 cl servings before all of the others adopted the same format. Benefits of the most low-key distribution network in all of France – generally bought in Arabian corner shops Variety of product: The company is also known for its other products like in Holland with the alcohol-free beer. Strong brand name:

The 8°6 beer have a lot of follower in the world as a beer to be savoured. “People are so keen on 8°6 that they’re keeping the entire can to themselves, even drinking it alone.” Emblematic of street culture: This beer has found its following at street level, via alternative movements, only distribute in local corner shops and service station. It has becoming the beer of choice for Night Owls and insomniacs due to the distribution across Arabian shops that are open at late at night. Cult object avers by Doc Gyneco in his song

8°6 festival: every year, people spend the 8th june striving to drink as much 8°6 as is humanly possible 8°6 style

Culturally baggage-free: the new generation claims it as its own due to the 8°6 lack of history.

Attractive packaging: dark blue with gold trimming – colours synonymous with prestige products – Its very rich aspect attracts most of young players.

Weaknesses

Tiny advertising budget: 20 times less than that of this sector’s heavyweights. Tens positioning: Bavaria’s consumers are mostly people from the street, usually people addicted. Their pool of consumers is large but the consumption of 8°6 is mostly not healthy. They are targeting “particular” consumers that could discourage wealthy or high middle class people to use the product.

Regarding the positioning, I don’t think that the company need to change it. In fact, even if it’s a strange or non-common positioning, it profitable. The company knows the risk and the critics it would have to face but it’s work and young people like this positioning of “street beer” with prestige packaging. Therefore, if the company change its positioning, it would lost a lot of young consumers.

Company background: The Coca cola company is now a largest soft drink company in the world. Coca cola became the largest manufacturer, distributor, and marketer of non-alcoholic beverage concentrates and syrups which operate in more than 200 countries. Coca cola was invented on May 1886 by Dr. John Stith Pemberton in Jaco’s Pharmacy in Atlanta, Georgia. The name Coca cola was suggested by Pemberton’s book keeper, Frank Robinson. He penned the name Coca cola in the flowing script that is famous today. Strengths: Coca cola has been a complex part of the American culture for over a century.

The images of the products has landed in many broadbands, and there pictures were taken deeply in the heart. The image is printed on posters, T-shirts, and hats. This is the most successful brand popularize in the world. In 2006, Coca cola is become one of the leading brand in globe top 100 brands. “Enjoy more than 685 moillion times a day around the world Coca cola stands as a smple, yet powerful symbol of quality and environment”(Allen,1995). Today, almost 230 kinds of products were produced in more than 200 countries, and the company is never give up to extend new market.

Coca cola has the most workable bottling system, which allow the products packed to can, plastic bottles and glass bottles, that means their coke can meet different request for different consumers. In addtionally, Coca cola allow their authorised the local company to sell the products, it is a way to save time and money to built the transport network. Apart from the above strengths, Coca cola has a huge market share, which is about 44%, is higher than it’s competitor—Pepsi. This means people are more likely to buy products from Coca cola.

For Coca cola, the market share rate is a important and useful power to grow and can help the company earn more revenue. Weakness: Health is an important issue in 21st century. As we know, coke contains high sugar and caffeine content. In Sempeteber 2006, the company received a report from Center for Science and Environment (CSE), which shows their products included chemicals could causes osteoporosis, damage the reproductive system and cancers (Scribd, 2006). This report will put the Coca cola in a very negative place, with any help for their brand and products.

Due to 2006, cash which invested in operating activities was decreased in 7% compared with 2005. Net cash provide by operating activities is also less than the previous year. With a series of problems, their market share is decreasing during the year. This may cause financial problesm such as not enough money to invest in newly growing market. Coke is a product, it should be sold by retailers. However, some larege retailers have exclusive contracts with Pepsi and do not stock Coca cola’s products, such as KFC. This is an abuse, and may cause market share loss.

These retailers like KFC are shopped all over the world, over two million dolars loss due to this reason. Oppotunities: Nowadays, from American south coast to a small country in China, from Moscow to Sydney, buy a bottle of Coca cola is the most easiest thing. Although Coca cola is a worldwide brand, it’s products are sold around the world, there still have some markets need investment. Because there is no current brand could compete with them, expansion into third world countries is the easiset than ever before. The population in thrid countries is two times more than developed countries.

This is a big market for Coca cola to improve and these markets can make the revenue growing like a rocket. Because bottle water can increasing health concems, bottle water market is becoming a fast-growing market in these years. In 2006, approximately 15. 6 million dolars were earned in US bottle water market. In the bottle water market, flavoured water is a part which growing by about 10 billion dolars annually. Coca cola could use their market leader position to invest in flavored water market to take advantage of growing demand.

Young people are more likely to choose coke, especially in Lartin American countries and Asia countries, more and more young people are contribute to their revenue. Ohterwise, carbonated beverages are very compatible with American fast food culture, therefore there are many retailers are shopped with Coca cola. Threats: Competition between each company is a big problem. The company faces competition in beverages market from local firm as well as globe players. Also, the company faces various competition nonalcoholic beverages such as juice, friut drinks.

In many countries which Coca cola sell it’s products, there should be their primary competitior—Pepsi. Other competitor such as Kraft Foods, Nestle. Competitive factors impacting the company’s business include pricing, advertising, sales promotion programs, brand and trademark development and protection. There competition could impact Coca cola’s market share and revenue growth rate. For some political reasons, middle east countries boycotting US brands, which will influence Coca cola’s globe market plan and revenue.

Consumers are start to look the better drinks whcih will not cause health problems. This has led to a decrease in the comsumption of carbonated and other sweetened beverages. Moreover, the US is the company’s core market, Coca cola already expect its performance in the region to be sluggish during 2007. Coca cola’s revenue could be adversely affected by a slowdown in the carbonated beverage market. Target consumer: Coca-Cola main objectives are to supply everyone their favourite drink and to satisfy the consumer needs and wants.

Coca-Cola second main objectives are to provide profit to the shareholders and increase the market share. Target consumer is a set of buyers sharing common needs or characteristics that the company decides to serve. The company’s beverages are generally for all consumers. However, there are some brands, which target specific consumers. For example, Coca-Cola’s diet soft drinks are targeted at consumers who are older in age, between the years of 25 and 39. PowerAde sports water target those who are fit, healthy and do sport.

Winnie the Pooh sipper cap Juice Drink target children between the ages 5-12. This type of market approach refers to market segmentation. The Coca-Cola Company when advertising, has a primary target market of those who are 13-24, and a secondary market of 10-39. The Coca-Cola Company’s products include beverage concentrates and syrups, with the main product being finished beverages. The business has over 300 brands of beverages around the world with the main ones being Coke, Fanta, Lift, Sprite, Frutopia 100% Fruit Juice, and PowerAde.

The Coca-Cola Company packages its beverages into plastic bottles of sizes 2 litres, 1. 25 litres, 600mL and 300mL. These are also available in aluminium cans of 375mL. Coca-Cola is the most well known trademark, recognised by 94 per cent of the world’s population. The business is very successful and holds a very good reputation. Allen J. 1995, Coca cola SWOT analysis, viewed 23 March 2010, http://www. coca-cola. com. Scribd 2006, Scribd, viewed 21 March 2010,http://www. scribd. com/doc/9995196/Swot-Analysis-of-Coca-Cola. http://en. wikipedia. org/wiki/coca-cola accessed 31 October 2009.

Netflix History

1997

 – 

Reed Hastings and software executive Marc Randolph co-found to offer online movie rentals.

1998

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Netflix launches the first DVD rental and sales site, netflix.com.

1999

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Netflix debuts a subscription service, offering unlimited DVD rentals for one low monthly price.

2000

 – 

Netflix introduces a personalized movie recommendation system, which uses Netflix members’ ratings to accurately predict choices for all Netflix members.

2002

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Netflix makes its initial public offering (IPO on Nasdaq under the ticker “NFLX” with 600,000 members in the US.)

2005

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The number of Netflix members rises to 4.2 million.

2007

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Netflix introduces streaming, which allows members to instantly watch television shows and movies on their personal computers.

2008

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Netflix partners with consumer electronics companies to stream on the Xbox 360, Blu-ray disc players and TV set-top boxes.

2009

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Netflix partners with consumer electronics companies to stream on the PS3, Internet-connected TVs and other Internet-connected devices.

2010 

– 

Netflix is available on the Apple iPad, iPhone and iPod Touch, the Nintendo Wii, and other Internet-connected devices. Netflix launches its service in Canada.

2011

 – 

Netflix launches throughout Latin America and the Caribbean.

2012

 – 

Netflix became available in Europe including the United Kingdom, Ireland and in the Nordic Countries. Netflix wins its first Primetime Emmy Engineering Award

2013

 – 

Netflix expanded to the Netherlands. Netflix garners 31 Primetime Emmy nominations including outstanding drama series, comedy series and documentary or nonfiction special for “House of Cards”, “Orange is the new black”, and “The Square” respectively. House of Cards won three Primetime Emmy Awards. Netflix was the first internet TV network nominated for the Primetime Emmy.

2014

 – 

In 2014 Netflix launched in 6 new countries in Europe (Austria, Belgium, France, Germany, Luxembourg and Switzerland). Netflix wins 7 creative Emmy Awards for House of Cards and Orange is the New Black. Netflix now has over 50 million members globally.

2015

 – 

Netflix launches in Australia, New Zealand and Japan, with continued expansion across Europe in Italy, Spain and Portugal. The first Netflix original feature film “Beasts of No Nation” is released.

2016

 – 

Netflix is available worldwide.

Netflix on Forbes Lists

• #111 Growth Champions
• #15 Top Regarded Companies
• #76 World’s Best Employers
• #5 Innovative Companies
• #996 Global 2000
• #1 016 in Sales
• #1 564 in Assets
• #148 in Market value
• #71 World’s Most Valuable Brands
• #276 America’s Top Public Companies
• #298 in Sales
• #619 in Profit
• #396 in Assets
• #74 in Market value
• #372 America’s Best Employers (2015)

Netflix, Inc. operates as an Internet subscription service company, which provides subscription service streaming movies and TV episodes over the Internet and sending DVDs by mail. The company operates its business through the following segments: Domestic streaming, International streaming and Domestic DVD. Netflix obtains content from various studios and other content providers through fixed-fee licenses, revenue sharing agreements and direct purchases. It markets its service through various channels, including online advertising, broad-based media, such as television and radio, as well as various partnerships. Netflix was founded by Marc Randolph and Wilmot Reed Hastings Jr., on August 29, 1997 and is headquartered in Los Gatos, CA.

Netflix is the world’s leading internet television network with over 100 million members in over 190 countries enjoying more than 125 million hours of TV shows and movies per day, including original series, documentaries and feature films. Clients can watch as much as they want, anytime, anywhere, on nearly any Internet-connected screen. They also can play, pause and resume watching, all without commercials or commitments.

The market of TV series is growing very fast for several years now. Netflix is the world’s leading Internet subscription service for enjoying movies and televisions show. During the fourth quarter of 2016, the company added 7.05 million users, which was twice the amount of users they added in the in the third quarter. Of these new users, 73% came from international markets – the focus of the company’s user growth strategy. Netflix strategy is to continue to build a platform that allows for consumers to obtain the best streaming subscription business both domestically and internationally.

Here is a SWOT analysis of Netflix.

Strengths

Netflix has set itself apart as an industry leader in streaming entertainment services. By being the first significantly competitive company to provide streaming movie services, they have significantly leveraged their first-mover advantage in this market segment.

With more than 98 million subscribers globally, Netflix is one of the largest providers of subscription-based streaming movies and TV shows in the world. Its Internet-based subscription model enables it to offer a wide portfolio of services in a more user-friendly way than traditional outlets. In January 2016, Netflix launched its services to 130 countries, taking the total number of countries in which it offers streaming services to 190. This expansion is expected to help it hedge the effects of slow growth in the US.

Netflix has been broadcasting exclusive content for several years now. The notable series are award-winning series House of Cards or Hemlock Grove. Later on, the company produced many other shows including high ranked productions such as Orange is the New Black, Marco Polo, Bloodline, Daredevil or The Narcos. Moreover, Netflix has signed contracts with big movie distributors such as Walt Disney Studios Motion Pictures (including Walt Disney Pictures, Walt Disney Animation Studios, Disneynature, Pixar, Lucasfilm and Marvel Studios).

Weaknesses

Netflix reported disappointing earnings today (as of this writing the stock was down 11% for the day). One particular area of concern was the huge forecast slowdown in international subscriber adds. Despite expanding into over 130 countries Netflix management guided for international subscriber growth to slow from 4.5M adds in the current quarter to only 2M for the next quarter.

Cable TV service and bundle packages are very expensive in the US. It’s not uncommon for a household to pay over $100 per month for broadband internet and cable TV with the bills for some bundles reaching over $200. Overseas, due to more competition and tighter regulations, pay TV is much less expensive.

Netflix will also have to face more competitors in the over-the-top (OTT) TV space, or TV service that is not reliant on cable or satellite services. Google is launching its YouTube TV service this year, and Hulu will also have an OTT service out this year. Dish Network and AT;T, through DirecTV, are also bolstering their offerings. Meanwhile, Amazon has also increased its original content. And, increasing premium programming also means that Netflix will have to spend more on content.

Opportunities

RBC analyst Mark Mahaney believes that Netflix could generate sales of more than $1 billion annually from sales of merchandise for its wildly popular original programs such as nostalgic ’80s sci-fi thriller Stranger Things, perplexing mystery series The OA, and adult animated comedy BoJack Horseman. In a recently released note to clients, Mahaney said, “We view this as a highly reasonable step by Netflix to further promote and market its original content and other offerings.” He further observed that while this will be years in the making, “We see this as a development that signifies the coming of a scale of an increasingly ubiquitous global entertainment company.”

Netflix merchandising ambitions are still in the nascent stages. In early December 2016, merchandise for pop-culture phenomenon Stranger Things debuted at Hot Topic and its charitable spin-off BoxLunch. After a seemingly successful trial run, Netflix posted a job listing earlier this year for a merchandising and promotion manager to administer licensing of “books, comics, gaming toys, collectibles, soundtrack and apparel” to “establish a licensing and merchandising approach to help amplify fervor around key titles by developing new channels for consumers and communities to interact with Netflix.”

One of the markets which Netflix can look to increase its subscribers is India and other neighboring countries like Pakistan, Bangladesh and South-East Asian countries. One of the biggest benefits of this region is that English is used as a second language in many of these countries. Also, there is a greater prevalence of Hollywood movies within the local market which can reduce the need to produce customized content. (Although customized content would still be needed).

Threats

Increasing competition is the most formidable threat the company faces. The market for online entertainment services remains subject to rapid technological change, and fewer barriers to entry in the streaming business mean greater competition from rivals. A large number of consumers use multiple entertainment providers, and can easily shift their spending depending on a variety of factors. Amazon.com is one such competitor. Its service Amazon Prime is an annual membership program that, in addition to offering free shipping on millions of physical items for purchase, also allows customers access to its instant streaming platform, with thousands of movies and television episodes. Cable channel HBO has announced its HBOGO will be made available without a television subscription in 2015. Its large catalog of original titles ought to be tough competition for Netflix’s own streaming offerings. CBS network has also announced a subscription streaming service. We expect competition will continue to increase in the coming years.

Netflix faces a big threat from video piracy, especially from peer-to-peer networks such as torrents. Its successful series such as House of Cards and Orange is the New Black have been illegally downloaded by millions all over the world, causing it huge losses. The black market around the world in the form of downloading is a potential threat for Netflix. Increasingly high numbers of young people between the ages of 20 and 30 download content for free. These customers don’t need a subscription service at all, and most content is available to them for free.

Conclusion

Netflix already has a history of being the first to embrace the changing habits of consumers by successfully switching from DVDs to online streaming. However, the company is not resting on its laurels. Netflix was the first company to resign from making money off streaming ads between its movies and proved that the satisfaction and convenience of its users, who were tired of watching time-consuming ads, is once again more important than higher income. We foresee significant growth in revenues and share earnings for Netflix over the coming years. Its growing original content portfolio should also continue to attract new clients. Still, increasing competitive pressure will probably remain the biggest concern.

References

• Netflix’s International Weakness Shouldn’t Be A Surprise [https://seekingalpha.com/article/3966339-netflixs-international-weakness-surprise]
• Lower subscriber growth could hurt Netflix’s first quarter earnings, analysts warn
• Netflix’s Next Billion-Dollar Opportunity Is Not What You Might Think [https://www.fool.com/investing/2017/04/21/netflixs-next-billion-dollar-opportunity-is-not-wh.aspx]
• Netflix: A Short SWOT Analysis

Apple Inc. is an American multinational corporation which focuses on designing and manufacturing technology products such as consumer electronics, personal computers and software. Apple Computer, Inc. was established in Cupertino, California on April 1, 1976 and incorporated on January 3, 1977 by Steve Jobs and Steve Wozniak. The company used this name for the first 30 years until it removed the word “Computer” on January 9, 2007 to reflect its expansion into the consumer electronics market in addition to its original computer market.

Apple designs, manufactures and markets personal computers, servers, network solutions, peripherals, mobile communication devices, portable digital music players, and related accessories, software and services. The company’s product portfolio comprises Mac computer systems, iPod portable digital music and video players, iPhone mobile phones, iPad portable multimedia, and Xsan and Mac OS servers.

The company’s applications include Mac OS, iTunes, iLife, iWork, iClould, Safari, QuickTime, MobileMe and others. Apple mainly operates in the United State and manages its business primarily on geographic structure. It develops global market through five operating segments: the Americas, Europe, Japan, Asia-Pacific and retails. The company sells its products through online stores, retail stores, direct sale forces, and third-party resellers. It is headquartered in Cupertino, California and currently employs 49,400 employees globally.

Read about “Apple differentiation strategy”

Apple Inc. became the largest company in the tech universe on May 26, 2010 (Manjoo & Caplan, 2010). The company recorded revenues of $65,225 million during the financial year ending September 2010, an increase of 52% over 2009. The revenues derived from strong sales of iPhone, iPad and laptops. Its net income reached $14,013 million in 2010, making a huge increase of 70.2% over 2009. This exceptional growth is supported by its competitive advantages of its brand, management, technology and strategy.

SWOT Analysis

Strengths -Strong brand image -R&D driving innovation -Robust financial performance -Loyal customer Weaknesses -Product recalls -Patent infringement

Opportunities -Strong growth in smartphones market -Continuing growth in PCs market -Potential growth for music and applications Threats -Intense competition -Dependence on specific suppliers -Bargaining power of music suppliers

Strengths Strong brand image Apple has successfully built its phenomenal brand recognition all over the world. Apple’s brand awareness is very strong and covers entire its market segments. The company’s brand ranking has significantly improved during the last few years. According to Interbrand, Apple’s brand ranking improved from a thirty-fifth position in 2007 to a seventeenth position in 2010. Moreover, a new survey conducted by Brandz showed that Apple bypassed Google and IBM to become the world leading brand in May 2011.

Apple’s brand awareness is one of its sustainable competitive advantages. The company’s brand awareness strengthens Apple’s differentiated strategy and creates its market power. Therefore, the company not only maintains its premium pricing strategy but also creates significant demands for its products over years. For example, more than 108 million iPhones have been sold worldwide as of March 2011. The company spectacularly sold 300,000 iPads on the first day of its launch in the United State.

Research and Development Apple’s core strategy is the product differentiation. Therefore, it has set a high standard for premium quality products in order to meet its customers’ expectation and generate new demand. It continuously invests in R&D to invent new products, provide new solutions and improve unique designs. Macbook, iPod, iPhone, iTunes and iPad are some of Apple’s innovative products which are famous with their superior ease-of-use, seamless integration and refining industrial design. Apple has a strong focus on research and development. It is currently in the list of “Top 50 Technology R&D Spenders”. The company’s R&D expenditure was $1,782 million in 2010 and $1,333 million in 2009, an average of 24% of its operating expenditure. This strong focus over the past few years has led to the successful launch of innovative products such as iPod, iPhone and iPad. These successful launches, in turn, enhance Apple’s brand image and affirm its market position.

Robust financial performance Apple has grown sustainably from the day it was established, supported by its competitive advantages of its brand, management and technology. Apple was recorded on the “Fortune 500 list” after five years of its existence. This fact remarks its milestone of becoming the fastest growing company in history. Some researchers believe that after the giant Microsoft invested $150 million in Apple now it has to get inline with Google, Nokia, HTC and HP as the companies that Apple seems bent on side-lining (Manjoo, 2010).

Apple had to face a strong competition during this time but it could manage to lead the Fortune list of the Most Admired Companies in 2008. It is currently in the thirty-fifth rank of the Fortune 500 list with its $62,225 million revenue and a $272 billion enterprise value. Apple reported a robust financial performance in the past few years. The company’s total revenue increased to $65,225 million in FY2010 from $42,905 million in FY2009 and $13,931 million in FY2005. The company’s revenue increased 52% over 2009 and its compounded annual growth rate has been over 32% up to date. Beside, its net profit also increased spectacularly to $14,013 million in FY2010 from $1,328 million in FY2005.

Apple’s current quarterly growth rate is 82%; therefore, it leaves other competitors far behind. For instance, Google’s quarterly growth rate is 26.6%, HP’s quarterly growth rate is 2.5% and total industry’s growth rate is just 24.3%. Strong operating performance has resulted high cash flow consequently. “We are extremely pleased with our performance which drove quarterly cash flow from operations of $11.1 billion, an increase of 131 percent year-over-year,” said Peter Oppenheimer, Apple’s CFO (Apple’s third quarter report FY2011). Strong growth in revenues and cash flows makes Apple an exceptional company of a convincing investment and a high return potential case. Therefore, it definitely strengthens investors’ confidence which allows potential investment for future avenues.

Loyal customer Beside advantages Apple generates from its internal factors, Apple also benefits from its strong loyal customer base. According to a recent study from Strategy Analytics, iPhone owners not only are most satisfied with their phones but also most likely purchase their next phones from Apple. Similarly, another survey shows that 90% of iPad buyers will be existing Apple owners. This fact allows the company to market its additional products to current customers.

Weaknesses Product Recall Product quality problems are unavoidable for technological pioneers. Apple, with its ambition to provide latest innovative products, is not excluded from this fact. Its complex hardware and software products are likely to contain defects in design and manufacture. Moreover, the company also uses some components and services from third parties. Therefore, there may be no assurance that the company will be able to detect and fix all possible defects. Even though Apple has delivered its commitment to provide the most premium products, the company met some product quality problems from time to time.

For example, in 2005, Apple recalled iBook and PowerBook computer batteries which might pose fire hazards to consumers. Another recall happened in 2008 when Apple announced the Ultracompact USB Adapter Exchange Program. Most recently, Apple has recalled a number of Verizon-carried iPad 2 tablets because of connectivity issues related to its mobile equipment identifier codes. These recalls inevitably harm Apple’s reputation and add significant amount to its operating cost.

Patent infringement Along with Apple’s growth, legal complaints related to its patent infringement increases over time. At the end of 2009, the company was defending more than 47 patent infringement cases, of which 27 cases were filled in 2009. Nokia filed an action against Apple in 2009, alleging the infringement of the GSM, UMT and wireless communication standards. Beside that, Motorola alone filed three separate lawsuits against Apple in 2010. It is obvious that unfavorable verdict impacts the company’s performance. For instance, Apple was sentenced to pay $625.5 million to Mirror Worlds LLC, a firm claiming ownership of the sleek visual file view. These patent infringement-related lawsuits not only affect the company’s financial condition but also harm the company’s prestige. Besides, these unfavorable lawsuits also offered its competitors advantages on stock market. For example, Nokia’s stock rose over four percent right after Nokia announced a lawsuit against Apple for patent infringement on June 2011.

Opportunities Strong growth in smartphones market The worldwide smartphones market is growing strongly in coming years. DataMonitor reported that worldwide smartphones shipments accounted for 15% worldwide mobile phones shipment in 2010. Following this trend, analysts forecast that smartphones market will reach 27% in 2011 and 53% in 2015. This growing trend will definitely offer a great opportunity for iPhone sales.

Apple became the third largest player in smartphone market segment after it launched its first smartphone device iPhone in 2007. iPhone is now available in 80 countries through various distribution channels. The company has experienced a strong growth in its iPhone business recently. Apple has just revealed an impressive figure on its quarterly financial report: the company sold 20.34 million iPhones in this quarter, resenting 124% unit growth. Besides that, iPhones sales also improve carriers’ revenue and profit. For example, Verizon won a net addition of 906,000 subscribers during the first quarter it carried iPhones. This win-win cooperation model will empower iPhones’ penetration into smartphones market.

Continuing growth in PCs market Together with smartphones market, the worldwide mobile PCs market is also forecast to record a strong growth in coming years. In 2009, the mobile PCs sales grew more than 15% over 2008. Moreover, Reportlinker forecasts that, in 2014, the global computer market will reach a value of $263.8 billion, an increase of 36.5% since 2009. This outlook ensures a great demand for Apple’s products in future.

Beside a strong growth due to the increase of demand, Apple is also continuously taking market share from it competitors. In 2007, Apple’s market share was only 2.6% while those of HP and Dell were 18.8% and 14.9% respectively. However, by July 2011, Apple soars to a third place in the United State PC market with its 10.7% market share. Currently, Apple’s market share increases 8.5% while the other leading players HP and Dell lose 1.2% and 9.8% respectively. The company’s enhancements of existing products such as Mac and the launch of new iPad in 2010 are accounted for this strong growth.

Potential growth for music and applications Another good news for Apple and music industry is that digital downloads is growing strongly. During the first half of this year, digital track sales are up 8.7% to 817.7 million units versus 752.4 million units in the first half of 2010 (Nielson, 2011). Last year, Apple’s iTunes music services sold its 10 billionth song and last week, it hit 15 billion song download. iTunes is undeniably leading the way in the digital music download market and helping the industry post these healthier numbers.

Threats Intense competition High technology industry would be an attractive industry because firms operated in this field can earn high returns. Therefore, this is an intense competitive industry with many competitors. Apple operates in this highly competitive and rapidly evolving technology industry. Apple apparently faces intense competition in all its products markets. Microsoft is Apple’s historic rival. It once nearly buried Apple during years of 1990. However, Apple has managed to maintain its competitive status recently.

In the computer hardware market, HP and Dell are the two leading competitors. Even though Apple is gaining some market shares from these two giants, it is still behind them, standing in the third position. Further, responding to the launch of iPhone, some competitors such as Nokia, Samsung, HTC and LG immediately launched theirs respective products in the market creating significant competition. This intense competition could result in the price erosion and the decreasing economies of scale. In the long run, the company’s revenues and profitability will be affected.

Dependence on specific suppliers Apple depends on third party suppliers for many components used in its products. There are not many qualified suppliers who can meet the high demand of this high technological firm. Therefore, in case of PCs, Apple has to source most of it general components from single or limited suppliers. Moreover, Apple also demands specific customized components, which are not generally used by other PC manufacturers. Concentration to different customers’ demands will increase the cost and reduce the quantity of suppliers. Apple’s operations will adversely be affected due to this lack of suppliers.

Bargaining power of music suppliers Despite the success of iTunes, Apple still has a tense relationship with music companies, which harms its dominance position in digital music market. For example, in 2007, Apple refused to renegotiate its flat price per song at 99 cent. Universal Music Group then declined to renew its annual contract with iTunes and instead opted to license content to Apple on an at-will basis. Right after that, Napster, Wal-Mart and Zune each had distribution deals with all four major labels namely EMI, Sony, Universal and Warner Brothers. Meanwhile AT&T and Verizon pushed their sales of digital music, mainly through subscription services. Intense competition partially creates bargaining power of music suppliers on iTunes and Apple. Consequently, input cost will increase, affecting to both retail price and iTunes’ profit.

Conclusion Let me conclude the case in an untraditional way. Last month, a Chinese teenager sold his own kidney to buy an iPad 2. This news reveals the truth that somebody can live without his kidney but can’t live without an iPad. Of course, Apple doesn’t expect this fact would happen. Now, if we look at this regretted issue at different angle, we can see that Apple’s products are not only normal gadgets but also parts of our lives. Apple’s brand name, innovative products and loyal customer base has mainly contributed to its current success. If Apple continues with its current strategy, it will definitely grow stronger, despite of some threats and weaknesses it is facing.

The strength of the Metropolitan Police Department is well-defined duties and responsibilities of the law enforcement organization resulting to the efficient performance of administrative and non-administrative functions of all human resources. Clear links exist between administration and the police officers working in the different functional departments resulting to more efficient reporting of outcomes and problems in the front line to the top administrators and the communication of decisions for implementation to the front line personnel.

This culture of efficient organization and functioning is a legacy of a mayor of the city that cultivated an efficient organizational structure not only in city hall but also in the metropolitan police department. (Metropolitan Police Department, 2008) The mayor, although a civilian, has influence in strategic decision concerning the police department. The weakness of the Metropolitan Police Department is limited funding brought about by the phase out of business taxes in one county together with a decline in revenue from building permits, which are significant sources of funding of the police department.

The city council’s decision to support the phase out of business taxes and limited opportunities for business expansion in the city dampened the construction of new buildings. (Metropolitan Police Department, 2008) Again, the city government, particularly the city council is the stakeholder that brought about this weakness. The opportunity for the Metropolitan Police Department is enhanced support and participation of the communities to enhance the efficiency of law enforcement authorities despite the limited budget (Metropolitan Police Department, 2008).

The active involvement of the community would allow the police department to direct its resources and efforts towards the different areas of law enforcement that requires prioritization to optimize available resources while at the same time ensuring responsive service delivery to the community. The growing activism of the community expressed through the establishment of community organizations and advocate groups that are cooperative with the police department are the stakeholders that created this opportunity.

The threat or challenge faced by the Metropolitan Police Department is potential staffing reduction is budget deficit of the city government (Metropolitan Police Department, 2008). If actualized, this involves a number of implications to the police department including possible downsizing or staff reduction that could in turn lead to physical and clinical fatigue to the remaining staff as well as limited ability to provide quality and responsive services to the communities especially with growing problems.

A budget deficit could mean decreased inefficiency of the city government in collecting revenue and allocating resources as well as inefficiency in boosting growth and employment opportunities in the city. Regardless of the reason, more problems would arise for the police department including rise in property crimes that is difficult to handle with a nil budget. City government is the stakeholder that determines the actualization of this threat because of its control over the police department’s budget.

Issues Implied from the SWOT Analysis The issues emerging from the SWOT analysis are strategic in nature because these involve factors and parties outside of the police department as well as actions or solutions with long-term impact (Bryson, 2008). The major issue is limited budget, which is highly influenced by the city government. A strategic question is “How can the police department develop a budget allocation plan that balances service quality with cost efficiency?

” Process in Framing Strategic Issues Framing strategic issues is a process commencing with the identification of all issues followed by the prioritization of the issues based on the relative impact of these issues on the ability of the police department to achieve long-term goals. The identification and prioritization should find bases from data derived from the various stakeholders.

This process works because it supports informed strategic decision-making. (Bryson, 2004)

References

Bryson, J. M. (2004). Strategic planning for public and nonprofit organizations: A guide to strengthening and sustaining organizational achievement (3rd ed. ). San Francisco: CA: Jossey-Bass. Metropolitan Police Department. (2008). About MPDC. Retrieved August 23, 2008, from http://mpdc. dc. gov/mpdc/cwp/view,a,1230,Q,537757,mpdcNav_GID,1529,mpdcNav,|,. asp