• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

SWOT analysis of Apple and Amazon

Extracts from this document...

Introduction

SWOT Analysis Apple This SWOT analysis is about Apple. Strengths. * Apple is a very successful company. Sales of its iPod music player had increased its second quarter profits to $320 (June 2005). The favourable brand perception had also increased sales of Macintosh computers. So iPod gives the company access to a whole new series of segments that buy into other parts of the Apple brand. Sales of its notebooks products is also very strong, and represents a huge contribution to income for Apple. Brand is all-important. Apple is one of the most established and healthy IT brands in the World, and has a very loyal set of enthusiastic customers that advocate the brand. Such a powerful loyalty means that Ample not only recruits new customers, it retains them i.e. they come back for more products and services from Apple, and the company also has the opportunity to extend new products to them, for example the iPod. Weaknesses. * It is reported that the Apple iPod Nano may have a faulty screen. The company has commented that a batch of its product has screens that break under impact, and the company is replacing all faulty items. This is in addition to problems with early iPods that had faulty batteries, whereby the company offered customers free battery cases. * There is pressure on Apple to increase the price of its music download file, from the music industry itself. ...read more.

Middle

So iPod and MP3 rule today, but only yesterday it was CD, DAT, and Vinyl. Tomorrow's technology might be completely different. Wireless technologies could replace the need for a physical music player. * In 2005 Apple won a legal case that forced Bloggers to name the sources of information that pre-empted the launch of new Apple products. It was suspect that Apple's own employees had leaked confidential information about their new Asteroid product. The three individuals prosecuted, all owned Apple tribute sites, and were big fans of the company's products. The blogs had appeared on their sites, and they were forced to reveal their source. The ruling saw commercial confidentiality as more important as the right to speech of individuals. Apple are vulnerable to leaks that could cost them profits. SWOT Analysis Amazon Amazon is a profitable organization. In 2005 profits for the three months to June dipped 32% to $52m (�29.9m) from $76m in the same period in 2004. Sales jumped 26% to $1.75bn. Until recent years Amazon was experiencing large losses, due to its huge initial set up costs. The recent dip is due to promotions that have offered reduced delivery costs to consumers. This SWOT analysis is about Amazon. Strengths. * Amazon is a profitable organization. In 2005 profits for the three months to June dipped 32% to $52m (�29.9m) ...read more.

Conclusion

For example the company announced a deal with the British Library, London, in 2004. The benefit is that customers c an search for rare or antique books. The library's catalogue of published works is now on the Amazon website, meaning it has details of more than 2.5m books on the site. * In 2004 Amazon moved into the Chinese market, by buying china's biggest online retailer, Joyo.com . The deal was reported to be worth around $75m (�40m). Joyo.com has many similarities to its new owner, in that it retails books, movies, toys, and music at discounted prices. Threats * All successful Internet businesses attract competition. Since Amazon sells the same or similar products as high street retailers and other online businesses, it may become more and more difficult to differentiate the brand from its competitors. Amazon does have it s brand. It also has a huge range of products. Otherwise, price competition could damage the business. * International competitors may also intrude upon Amazon as it expands. Those domestic (US-based) rivals unable to compete with Amazon in the US, may entrench overseas and compete with them on foreign fronts. Joint ventures, strategic alliances and mergers could see Amazon losing its top position in some markets. The products that Amazon sells tend to be bought as gifts, especially at Christmas. This means that there is an element of seasonality to the business. However, by trading in overseas markets in different cultures such seasonality may not be enduring. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Business Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Business Studies essays

  1. This paper will concentrate on Apples Apple TV business, and its complementing iTunes business.

    In addition, content purchased from iTunes can be transferred on multiple devices (in addition to iPod), thus making it extremely attractive. ==> Searching for content on iTunes is simple. You can search using genres, keyword search, power search where you can provide different parameters of your search ==> 1-click movie and song previews.

  2. HRM - how Marks and Spencer motivate their staff.

    The most notably advocate was Henry Ford who used them to design the first ever production line, making Ford cars. This was the start of the era of mass production. Taylor's approach has close links with the concept of an autocratic management style (managers take all the decisions and simply give orders to those below them)

  1. Analysis of the marketing mix of Tata Nano

    2.3.3 Radio Advertisement Most of the Malaysians listen to the radio daily. Now a day have many facilities such as MP3, hand phone and so on, is convenience for the people to listen the radio anytime at anywhere, This is a cheap and pervasive medium for us to create the

  2. Ford Company Analysis - corporate structure and financial analysis

    million or two percent of the total annual revenues of Ford, in both cases for any of the three most recently completed fiscal years 1. If within the last three years a Ford director was an executive officer of another company which was indebted to Ford or to which Ford

  1. Questions on Globalisation and International Trade

    Russia, by contrast, is still many years away from even being in a position to be considered by the EU for membership. Depending upon when you are using the book, this situation could be different. (You also may want to substitute other countries into this question depending on current events

  2. Introduction to e-commerce. Benefits, risks and legislation.

    - Printers: Printers allow users to print images they like from the internet. It is also used to provide receipt for customers after transaction. - Ipads: Ipads has all the facilities that the users need. Such as, they can shop online from ipads too as it has internet browser in it.

  1. My paper on the Deltic Timber Corporation provides an overview of the company, and ...

    to make some analysis. Firstly, liquidity ratios measure a firm's ability to meet its current obligations. Working capital ratio for 2011 (3,618) is higher than this of 2010 (2,520), thus Deltic Timber Corp. is less able to borrow on short notice in 2011 than in 2010.

  2. Organisational Behaviour (in short called as OB) is concerned with the study of the ...

    Moreover, It has looked about the factors which influence individuals at work. Task 2: 2.1 Compare the effectiveness of different leadership styles in different organisations: In the public services they confront different types of scenarios on a day to day basis, where different leadership styles may be used.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work