• 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...


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.


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.


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. HRM - how Marks and Spencer motivate their staff.

    His theory most closely fits in with a paternalistic style of management. Maslow (1943) stated that there are five levels of needs, physiological, safety, social, esteem and self actualization.

  2. Starbucks expansion into China

    In China, it mainly promotes itself through office visits and free sample to customers but seldom does it spend on advertisement (Qin, 2004). Besides, it offers seasonal promotions based on holiday themes. Staffs wear special clothes; decorate the store; put up the designed banners or other promotional materials.

  1. What is a SWOT Analysis?

    or badly (weaknesses) at present. * The factors that in the future may give the school/ department potential to develop (opportunities) or may make its position weaker (threats) 2. Make your points long enough and include detail. Include precise evidence, and cite figures, where possible.

  2. 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.

  1. Advance Professional Development

    Reflect upon and review your own personal and career development 1 2 3 4 5 * recognise and develop skills and competencies required for learning and future employment * develop opportunities for learning activities through current and future roles * recognise the importance and value of activities outside the curriculum, e.g.

  2. Thai Tuan Textile Company, Vietnam - Marketing Strategies

    everyday and go to supermarket just once or twice a week. In a report of Vietnamese Trade Department in 2004, Vietnam at that time had around 8,300 traditional markets ("cho').That means there was almost a "cho" per ward or commune.

  1. Marketing. In my project, I am going to be looking at how Nestls Smarties ...

    85% of people can't remember any of Smarties slogans. Slogans can be useful at making a product stick in someone's memory. 70% of People would like to see Smarties move into cereals and 30% want to see white chocolate Smarties. These are products Smarties might want to look at in the future.

  2. Ford Company Analysis - corporate structure and financial analysis

    Pickups and Sport-Utility Vehicles 03/24/05 Irvine Hockaday Jr. 73 Relationships Lead Director, Member of Audit Committee and Member of Nominating & Governance Committee Federal Regulators Investigating Ford Focus for Door Latch Problems 08/24/04 Kimberly Casiano 28 Relationships Director, Member

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