Description
For this portion of your course project, you will further analyze and identify the role of technology in your selected organization. This section should address the topics below.Analyze the role of technology in your selected organization’s company strategy, then assess how organizational responsibilities incorporate ethical challenges related to the use of technology.Evaluate how your selected organization’s responsibilities related to the use of technology have evolved due to the accelerated development of technology.Expand on the topic of technology by identifying how individual countries use technology to regulate a population’s actions.Explain how technology creates costs for governments.This section of your paper should be at least two pages in length. You must use at least three academic sources, and one must be from the CSU Online Library. Adhere to APA Style when constructing this assignment, including in-text citations and references for all sources that are used. The same organization selected in Unit I should be used for this assignment. In each unit with an assignment, students complete another section of the project due in Unit VIII. Submit each assignment as a separate document until you combine the assignments into the project. I have attached peer reviewed articles fore references to complete the assignment as well as this link. Khalid, M. A., & Viktoria, D. V. (2023). Strategic Marketing Plan for Apple Inc. https://papers.ssrn.com/abstract=4493889.
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Corporate Social Responsibility Activities
Becquerel Brown-Smith
Columbia Southern University
Course BUS 7301
Professor Aubry
12/5/2023
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Part I: Corporate Social Responsibility Activities
Contrast Ethical Managerial Decisions and Priorities:
Apple Inc. has displayed a commitment to ethical decision-making. The commitment
matches its core priorities of innovation, environmental sustainability, and stakeholder
considerations. The company emphasizes innovation in creating innovative technology while
remaining conscious of environmental impacts and stakeholders’ interests. For instance, Apple’s
decision to transition towards renewable energy sources for its operations reflects its
commitment to environmental sustainability. What is more, the managerial responsibilities at
Apple firmly match ethical guidelines. The company ensures fair treatment of stakeholders by
providing a conducive work environment for employees. It offers competitive compensation and
prioritizes their growth opportunities. Environmental consciousness is evident through initiatives
like reducing carbon footprint and developing products with recyclable materials.
Managerial Decision-Making Related to Global Activities:
Apple Inc.’s managerial decisions related to global CSR activities and global expansion
are strategic. Three specific decisions include the supply chain ethical audits. Apple conducts
rigorous audits across its global supply chain to ensure ethical practices, fair labor conditions,
and environmental sustainability (Nikoofal & Gümüş, 2020). These audits support the
company’s global expansion by ensuring consistent ethical standards worldwide. Secondly, the
decisions include international community engagement. The company engages in various
community initiatives globally. It supports education programs and encourages environmental
projects and social welfare. This decision aids global CSR activities and promotes positive
relationships with diverse communities.
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Lastly, sustainable product innovation is another way the decisions relate to the global
CRS activities. The company’s focus on developing sustainable products and promoting
responsible usage supports its global CSR initiatives (Lu et al., 2023). These innovations help
expand into new markets while addressing societal concerns about environmental impact. These
decisions support Apple’s globalization strategies by fostering positive relationships in different
regions. This ensures ethical compliance throughout the supply chain. It also matches the values
of various global societies.
Incorporation of Organization’s and Global Society’s Needs in CSR Actions:
Apple Inc.’s CSR actions effectively balance the organization’s needs with the larger
global society’s requirements. The company addresses global concerns and societal
responsibilities through CSR initiatives. Firstly, Apple’s commitment to reducing carbon
emissions addresses global environmental concerns. They invest in renewable energy and
develop eco-friendly products (Sengupta & Penney, 2020). Secondly, the company’s supplier
responsibility program ensures fair labor conditions across its global supply chain. This reflects
its dedication to societal responsibilities. Finally, Apple contributes positively to society through
community projects and educational initiatives. It matches its CSR actions with global societal
needs. Considering the environmental impact, ethical labor practices and community engagement
help Apple meet the organization’s needs. It also helps the company meet the needs of the larger
global society through its CSR actions.
Part II: Stakeholder Relationships and Governmental Interactions
Relationship between Organizational Political Strategies and Corporate Strategies:
Apple Inc.’s political strategies show a close link with its corporate strategy. This
expression of the close link is because the company engages in lobbying, advancing policy
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advocacy, and global government relations. These efforts give it substantial influence over the
company’s decisions. For example, Apple’s lobbying endeavors are targeted at securing
favorable policies that bolster innovation. It also supports policies safeguarding intellectual
property rights (Khalid & Viktoria, 2023). This helps to align with its overarching corporate
strategy. It actively engages in shaping policies conducive to technological progress. Through
this, Apple strategically fosters an environment that nurtures innovation. This enables the
company to maintain its pioneering role in the tech industry. This strategic alignment between
political endeavors and corporate vision highlights how Apple tactically integrates political
strategies to fortify its broader business objectives.
Challenges in Managing Business-Government Relationships:
Apple Inc. faces challenges in cultivating relationships with governments. The challenges
relate to regulatory compliance, evolving policies, and geopolitical dynamics. Navigating diverse
regulatory landscapes worldwide demands significant resources and adaptability. Adapting to
varied regulatory frameworks leads to complexities and substantial compliance expenses.
Moreover, continuous policy shifts and geopolitical dynamics compromise Apple’s operations. It
demands continual adjustments and adherence to ensure compliance across diverse global
jurisdictions. Balancing these challenges while upholding regulatory standards poses a
continuous hurdle for Apple operations and strategic planning.
Stakeholder Types and Influence on Managerial Decision-Making:
Apple Inc. engages with a spectrum of stakeholders. Some of these stakeholders include
employees, customers, shareholders, suppliers, communities, regulatory bodies, and interest
groups. The board of directors holds substantial sway in steering managerial decisions among
these stakeholders (Lu et al., 2023). Their strategic directives lead to significant influence. The
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influence guides the company’s trajectory in pivotal areas like corporate social responsibility,
global expansion initiatives, and ethical conduct. The board’s oversight shapes Apple’s
overarching strategies. It impacts critical decisions related to sustainability, expansion into new
markets, and the establishment of ethical business practices. Their guidance sets the tone for
Apple’s approach to addressing societal concerns.
Role of Board of Directors in Global CSR Decisions and Corporate Influence:
Apple Inc.’s board of directors plays a pivotal role in making decisions related to global
CSR. They set directives and provide oversight on CSR initiatives. It ensures matching the
company’s values and strategic goals. Corporations, including Apple Inc., leverage their board
directives and strategic decisions to influence global CSR behaviors. The board’s guidance
shapes the company’s ethical practices, sustainability initiatives, and community engagement
efforts globally. In conclusion, Apple Inc.’s commitment to CSR activities reflects a cohesive
approach to ethical business practices and global responsibility. This applies to its efforts to
make strategic decisions related to global activities and its management of stakeholder
relationships and governmental interactions. Its stakeholders play a crucial role in determining
the level of commitment.
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References
Khalid, M. A., & Viktoria, D. V. (2023). Strategic Marketing Plan for Apple Inc.
https://papers.ssrn.com/abstract=4493889.
Lu, W.-M., Kweh, Q. L., Ting, I. W. K., & Ren, C. (2023). How does stakeholder engagement
through environmental, social, and governance affect eco‐efficiency and profitability
efficiency? Zooming into Apple Inc.’s counterparts. Business Strategy and the
Environment, 32(1), 587–601. https://doi.org/10.1002/bse.3162.
Nikoofal, M. E., & Gümüş, M. (2020). Value of audit for supply chains with hidden action and
information. European Journal of Operational Research, 285(3), 902–915.
https://doi.org/10.1016/j.ejor.2020.02.024.
Sengupta, S., & Penney, V. (2020, July 21). Big tech has a big climate problem. Now, it’s being
forced to clean up. The New York Times.
https://www.nytimes.com/2020/07/21/climate/apple-emissions-pledge.html.
International Journal of Innovation in the Digital Economy
Volume 13 • Issue 1
Innovation Management Case Study
Neeta Baporikar, Namibia University of Science and Technology, Namibia & SP Pune University, India*
https://orcid.org/0000-0003-0676-9913
ABSTRACT
Apple Inc. (Apple), is one of the world’s most valuable companies in terms of market capitalization.
Apple led the global technology market by creating innovative products such as the Mac, iPod, iPhone,
and iPad, all of which redefined their respective markets. This case examines Apple’s approach to
innovation, and the founder’s role to foster a culture of innovation and inspire employees to create
game-changing products by thinking outside the box. Apple has always surprised the world with its
innovation, beginning with the 1976 invention of the Apple I computer circuit board and progressing
to become one of the world’s most successful personal computer and electronic devices manufacturer
and, more recently, smart devices. Adopting a systematic review method the focus here is to discuss
the innovation management benefits of Apple’s distinct and ever-changing organizational model and
provide a SWOT analysis. Recommendations are then given based on the SWOT analysis so that
other companies can adapt to this competing rapidly changing environment.
Keywords:
Approach, Computers, Creativity, Culture, Leader, Learning, Phones, Role, Technology
INTRODUCTION
In defining innovation, there is a need to distinguish the subtle difference between an “invention”
and “innovation.” According to Merriam-Webster On-Line Dictionary, invention is “a device,
contrivance, or process originated after study and experiment”.1 However, the same source defines
innovation as “the introduction (emphasis is ours) of something new, a new idea, method, or device.”
Schumpeter (1996, p. 81-86) describes innovation as a process of creative destruction which is
continuously revolutionizing macro level markets and structures. The widespread sub-categorization
of the innovation process into the consecutive phases of invention, innovation, as well as diffusion
and imitation can also be attributed to Schumpeter (1939, p. 84-102; Milling and Maier, 1996, p. 17).
The invention phase is characterized by the discovery of a previously unknown solution to a problem.
In form of an innovation, the invention is economically used for the first time during the innovation
phase. In the subsequent diffusion and imitation phase, the innovation spreads through the market,
thereby increasingly realizing the potential technological progress (Milling and Maier, 1996, p. 17-18).
DOI: 10.4018/IJIDE.311515
*Corresponding Author
Copyright © 2022, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited.
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Volume 13 • Issue 1
On a micro level, innovations diffuse between actors of a social system or an organization
through an existing or emerging set of relationships (Allen, 1977, p. 234-265; Roger, 2003, p. 5).
Rogers (2003, p. 5-6) defines diffusion in the standard work Diffusion of Innovations as a process by
which information is exchanged over certain communication channels between members of a social
system. He differentiates between the five stages knowledge, persuasion, decision, implementation,
and confirmation. The knowledge stage is initiated by the first encounter with the innovation and
ends after a general understanding of the innovation has been acquired. In the following persuasion
stage, an affirmative or negative attitude towards the innovation emerges. Next, decision stage, the
innovation is at least partially tested before it is decided whether the innovation will be adopted or
disregarded. In case of a positive adoption decision, the innovation will be used for the first time during
the implementation stage. Within the final confirmation stage, the adoption decision is continuously
challenged and where appropriate revoked based on newly acquired information about the innovation
(Roger, 2003, p. 168-169). Within an organizational context, the innovation process is subdivided
into two main processes: the initiation process and the implementation process (Zaltman, Duncan,
and Holbeck, 1973). Thus, innovation is the first appearance or use of a particular practice. It is the
commercially successful exploitation of ideas. This definition associates innovation with a tangible
outcome. Successful innovation is about creating value (Baporikar, 2015a).
According to Klette et al (2002), the creation of new products is at the forefront of economic
growth, and the emphasis on innovation and performance within small and large organizations has
grown significantly over the years. Because the rate of productivity growth only increases when
innovations are introduced, innovation creates productivity. Based on this assumption, it appears that
innovation and productivity coexist and that organizational culture has a lot to do with the degree
of novelty that the innovations possess. Thus, organizational culture has a significant impact on
innovation and performance, and it influences how new methods, ideas, and products are developed.
If a company fails to foster an innovative culture, it is unlikely that the company will grow, and
individual performance will suffer as a result (Loof et al, 2002). Creating a corporate culture of
innovation requires the creation of teams that share the same horizontal positions of power, allowing
each member of that team to play a theoretically equal role (Baporikar, 2015b). This contrasts with the
more traditional hierarchical organization, which does not treat individuals equally and creates a lack
of incentive to innovate (Barone, 2010). Apple Inc. is one of the largest companies that has created
an organizational culture of innovation and performance, recognizing that creativity and innovation
skills are critical to future success in life and work.
However, this case discusses innovation at Apple Inc. (Apple), one of the world’s most valuable
companies in terms of market capitalization. Apple led the global technology market by creating
innovative products such as the Mac, iPod, iPhone, and iPad, all of which redefined their respective
markets. The case examines Apple’s approach to innovation, which was motivated by a desire to create
game-changing products. Apple’s corporate DNA was built on innovation. According to experts,
Apple was innovative because of its ability to iterate designs, devices, and functionality, resulting in
products that became the standard for customer experience. The case discusses Apple’s founder, Steve
Job’s, role as the company’s chief innovator who fostered a culture of secrecy at Apple and inspired
employees to create game-changing products by thinking outside the box. According to experts, it
was Jobs’ vision of creating ‘insanely great’ products that established Apple as an innovation icon.
One of Apple’s most difficult challenges was to launch some groundbreaking products in the future
while exceeding customer expectations. Apple has always surprised the world with its innovation,
beginning with the invention of the Apple I computer circuit board in
1976 and progressing to become the world’s most successful personal computer and electronic
device manufacturer. They brought about revolutionary changes in the user experiences of personal
computers and, more recently, smart devices. The company was always overseen by visionary
leaders, whose effective strategies helped shape Apple into what it is today. Adopting a systematic
review approach the aim of this case study is to discuss the management innovation benefits of
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Volume 13 • Issue 1
Apple’s distinct and ever-changing organizational model and did a SWOT analysis of Apple Inc. and
recommendation based on the SWOT analysis in the hope that it will be useful for other companies
competing in rapidly changing environments.
SITUATION ANALYSIS
Apple was founded by Steve Jobs, Stephen Gary Wozniak (Wozniak), and Ronald Gerald Wayne
(Wayne) on April 1, 1976. Working out of Jobs’ garage, they created a personal computer that was
sold as Apple I. Early January 1977, Apple Computer, Inc. was incorporated. Following that, the
company expanded by introducing numerous innovative and commercially successful products,
including the Apple II (1977) and Apple III (1980). Apple has always been committed to creating
great products using cutting-edge technology (Ashraaf, 2010). Jobs and Wozniak insisted on a strong
R&D focus, which helped Apple differentiate itself from its competitors. Among end- users, Apple
products enjoyed wide recognition both for their attractive designs and their powerful applications
in high-end computing in the education, multimedia, and entertainment industries. Jobs deserves
a large portion of the credit for this, as he had always viewed himself as a product architect rather
than a businessman. In the early 1980s, Apple released several innovative products and innovative
features. Apple’s early product development strategy was to replace existing products with new ones
at regular intervals. For example, Apple I was replaced by Apple II, and Apple II was replaced by
Apple III (Ashraaf, 2010).
Apple Inc.’s Approach to Innovation
According to Hansen et al. 2020, Innovation was a way of life and a part of Apple’s corporate DNA.
Apple’s success has been attributed to its ability to create novel products. Over the years, the company
has introduced some excellent products to the market that have become the industry standard for
customer service. Apple was ranked first on BusinessWeek’s list of the world’s most innovative
companies for five years in a row (2006-2011). Since its inception, Apple has prioritized innovation
and has entered markets where it can make a significant contribution. Apple rose to prominence as
the world’s leading technology company by developing cutting-edge products. To respond to market
needs and challenges, as well as to deliver quality products and services, the company’s business
model was constantly innovated (Hansen et al, 2020).
Innovation in Customer Experience and Innovation Leadership
Apple’s innovation strategy was customer-centered. The company designed new products to meet the
needs of the user rather than the demands of technology. It released products that added value to both
the company and its customers. Apple products were designed in such a way that consumers did not
realize they needed them until they were introduced to the market. Customers were empowered by
these products’ excellent user experiences (Podolny et al, 2020). Jobs was Apple’s chief innovator.
He had been heavily focused on innovation since rejoining Apple in 1996, and he played an important
role in the product development process. He ensured that new ideas were in line with the company’s
vision. He has emerged as one of the world’s most innovative business leaders. Talking about J Apple’s
struggle to innovate in its early years, according to Jobs “You need a very product-oriented culture,
even in a technology company.” Many companies have a large number of excellent engineers and
intelligent employees. But, in the end, there must be some gravitational force that holds everything
together. Otherwise, great pieces of technology can end up floating around the universe. However,
it does not add up to much. That’s what Apple lacked for a while. Interesting bits and pieces were
floating around, but not that gravitational pull (Podolny et al, 2020).
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Key Drivers for Innovation
Apple’s organizational culture, people management, innovation strategy, and innovation competencies
are all enablers of innovation capability. Apple fosters an innovative culture at all levels of management.
Apple’s innovative thinking culture also promotes the innovation process. Furthermore, Steve Jobs’
leadership has been empowering to the company; he has inspired many new ideas and assisted
in sharing the company’s visions. Apple’s operations have been smooth and transparent, with no
bureaucracy. Apple was able to develop change and innovation models using systems theory, focused
groups, and experimentation. The company’s motto, “Think Different,” encourages all employees to be
creative. Apple recognizes, protects, and encourages all of its innovators. Innovators in the company
are also rewarded, either monetary or through recognition. Apple has invested heavily in innovation
because it requires significant funding and a lack of it can stifle creativity. Apple encourages diversity
in its workforce because people from different backgrounds perceive things differently, allowing for
new interpretations and ideas to emerge. Innovation is instilled in everyone working at Apple as it
is everyone’s role. Apple evaluates all ongoing projects regularly, as analyzing current activities is
critical to ensuring proper work is being done, and double-loop learning should be used. Apple’s
employees are skilled, so they can handle risk; it also tries to learn from its mistakes quickly. Apple’s
financial resources also aid in funding the company’s innovation. Apple has the best human resources
available, which keeps them ahead of the competition, because there is no substitute for knowledge
and talent unless Apple innovates and tries to come up with an alternative (Camisón et al, 2014)
Innovation Challenges
Apple faces a few challenges that limit its ability to innovate. Apple always launches any new idea
early and announces a future product launch date; it begins its marketing activity early. So, to meet
the deadline, Apple must be efficient, which precludes any further innovative changes to the product
as its focus shifts to production. Furthermore, under time constraints, products are made expensive
rather than cost-effective. Administrative pressure increases as the products must meet the launch
date, and they stop thinking differently. Under the constant pressure to meet deadlines and stick to
budgets, innovation takes a back seat until the goal is met. Apple sometimes tries to avoid risks, but
low risk leads to low rewards, so Apple must take some calculated risks if it wants high rewards.
Apple’s culture and organizational structure can sometimes limit innovative thinking even when
the technology is available, so the culture must be shared by all and communication must be open. The
general public sometimes doubts the effectiveness of some Apple products and has high expectations.
This expectation can be a significant burden for Apple, so constant efforts must be made to maintain
innovation. Apple sometimes tries to protect its reputed identity to increase its credibility and sustain
itself, so it creates limits, assigns responsibilities, and establishes rules, but innovation transcends
the organization’s boundaries. Instead of limiting its network, it should broaden it and effectively
manage all stakeholders. Apple sometimes calculates the value of innovation in quantifiable terms
such as market share and profits while overlooking factors such as reputation, leadership, talent, and
so on. These things, when neglected sparingly, increase the firm’s value, so it should change the way
it values innovation.
Apple leads customers rather than following them, which can be detrimental to the company in
the long run. Customers should therefore be prioritized. Apple may have a diverse workforce, but as
their thinking becomes more similar, the company’s innovativeness may suffer. Apple tries to make
all of its products look the same, which suppresses design innovation. Apple’s market research is
limited, which can be detrimental to their organization because the customer is the ruler, not Apple, and
importance should be placed on their needs. Apple has also encountered some barriers to innovation
when it outsources some parts to other companies and they fall short, or when some suppliers fail
to deliver on time. Apple relies heavily on logic, but logic does not generate innovation, and some
assumptions are made that may be incorrect.
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Volume 13 • Issue 1
SWOT ANALYSIS
According to Smithson (2022), Apple Inc. uses its business strengths to manage its weaknesses and
external threats and to successfully capitalize on opportunities in the industry environment. A SWOT
analysis of the technology company gives strategic insights on maximizing business growth based
on its strengths and opportunities (Smithson, 2022). In this case, Apple Inc.’s SWOT analysis scans
the company for relevant strengths, weaknesses, opportunities, and threats (SWOT variables), taking
into account various industries and markets. The company is involved in the industries of computing
technology (hardware and software), consumer electronics, cloud computing services, and online
digital content distribution services. This condition necessitates the development of a diverse set of
strategies by Apple to ensure its competitiveness and business growth.
SWOT analysis presents the strategic factors that influence managers’ decisions in developing
the business. With operations in various markets around the world, the company deals with various
sets of SWOT factors based on regional circumstances. Furthermore, Apple Inc.’s Porter’s Five
Forces analysis shows that the company faces a strong competitive force due to the aggressiveness
of other technology firms such as Google, IBM, Amazon.com, Samsung, Microsoft, Sony, Lenovo,
Dell, and PayPal. To achieve continuous business growth and development, as well as to fulfill
Apple’s corporate mission and vision statements, this competitive landscape necessitates innovative
strategies and tactics (Helms et al, 2010). The SWOT analysis framework identifies the strengths that
allow Apple to overcome weaknesses, capitalize on opportunities, and resist threats in its technology
business environment. Figure 1 below presents the SWOT analysis.
Strengths
These strengths are internal factors specific to the business organization’s conditions and technological
capabilities. In this case, Apple Inc.’s most notable strengths are as follows:
Figure 1. SWOT analysis of Apple Inc. Source: Self-developed
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1. One of the world’s strongest brands
2. High-profit margins based on premium pricing
3. Effective rapid innovation processes based on a long history of technological innovation
Apple is one of the world’s most valuable and powerful brands. Because of its strong brand image,
the company is capable of introducing profitable new products, such as new lines of mobile devices, in
the context of this SWOT analysis. Furthermore, Apple’s marketing mix includes a premium pricing
strategy with high-profit margins. This internal strategic factor is a significant strength because it
maximizes profits even when sales volumes are limited, as with MacBook laptops. Furthermore, Apple
Inc.’s generic competitive strategy and intensive growth strategies include effective rapid innovation,
allowing the company to stay current with the latest technologies and maintain a competitive advantage
(Benzaghta et al, 2021). According to this aspect of Apple Inc.’s SWOT analysis, the company’s
strengths are difficult to compete with, thereby supporting the company’s continued leadership in
the global industry environment.
Weaknesses
The emphasis in this aspect of the SWOT analysis is on Apple’s weaknesses or inadequacies, as
well as its technological product development and marketing capabilities. Weaknesses are internal
factors that inhibit business growth, taking into account the relative performance of other technology
businesses. In the case of Apple, the following business weaknesses stand out:
1. Limited distribution network for its goods
2. High selling prices
3. Dependence on sales in high-end market segments
Because of its exclusivity policy, Apple Inc. has a limited distribution network. The company, for
example, carefully selects authorized sellers of its products, such as iPhones and Macs. According to
the SWOT analysis framework, this exclusivity strategy limits market reach, making the company’s
consumer electronics unavailable in many areas. This weakness exists despite the benefits of
exclusivity, such as Apple’s strong control over product distribution. Furthermore, as a result of its
premium pricing strategy, the technology company’s sales are reliant on high-end market segments.
High prices attract customers from the middle and upper income group, but they may prevent customers
from the lower income group from easily purchasing Apple’s consumer electronics. Because highend segments account for a small portion of the global market, this internal strategic factor is a
weakness (Benzaghta et al, 2021). Apple Inc.’s pricing and distribution strategies impose limitations
or weaknesses in the business based on the internal factors in this aspect of the SWOT analysis.
Opportunities
This aspect of Apple Inc.’s SWOT analysis identifies the most significant opportunities available
to the company. External factors based on the industry environment, such as the on-demand digital
content market, are examples of opportunities. These elements have an impact on the strategic
direction of business organizations (Benzaghta et al, 2021). The following are the most significant
opportunities in Apple’s case:
1. Expansion of the distribution network for wider consumer electronics market reach
2. More widespread and aggressive marketing for higher sales volumes based on high demand
3. Development of new product lines in consumer electronics and online services
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Apple Inc. may be able to expand its distribution network. This opportunity stems from the
company’s limited distribution of products such as smartphones and tablets. This SWOT analysis
emphasizes the importance of changing the distribution strategy of the technology company. Apple
can reach more customers in the global market by expanding its distribution network.
Furthermore, the company has the opportunity to explore new product lines, such as online
services, to supplement existing ones. With more innovation, the company can develop and introduce
new products, as it has done with the Apple Watch. Creating new product lines helps businesses grow,
especially when competing against other technology firms in the international market (Benzaghta et
al, 2021). Thus, despite the aggressive competition, this aspect of Apple’s SWOT analysis indicates
that the company has significant opportunities for further growth.
Threats
The focus of this aspect of the SWOT analysis is on the threats that Apple faces from various sources,
such as competitors like Samsung. External factors that limit or reduce the financial performance of
a technology-focused business are referred to as threats (Benzaghta et al, 2021). The following are
the most major threats to Apple Inc.:
1. An aggressive competition involving large multinationals like Samsung, Amazon, and Microsoft
2. Imitation involves firms that compete based on low prices
3. Rising labor costs in various countries where the company maintains production facilities
Firms’ aggressiveness contributes to tough competition in the technology industry. Apple,
for example, competes with firms such as Samsung, which also uses rapid innovation. Aggressive
competition has a limiting effect on the business in the context of this SWOT analysis, indicating the
need for strong fundamentals to maintain competitive advantages in computer software and hardware,
as well as online services. Furthermore, Apple faces the threat of product imitation, such as the iPhone.
Local and multinational corporations could imitate Apple’s product design and features. Furthermore,
rising labor costs associated with contract manufacturers, such as those in China, reduce profit margins
or push selling prices even higher (Benzaghta et al, 2021). Based on the external strategic factors
in this SWOT analysis, Apple Inc.’s performance is threatened by aggressive competition and the
imitation of product design.
SIGNIFICANCE OF INNOVATION MANAGEMENT
Much can be learned from Apple’s emphasis on innovation and performance within the company, as
