This paper is an in-depth business analysis of Apple Inc (AAPL). In this analysis, many areas of AAPLs business will be discussed to determine the risk level associated with investing a portion of a mutual fund in this company.
Abstract
This paper is an in-depth business analysis of Apple Inc (AAPL). In this analysis, many areas of AAPL’s business will be discussed to determine the risk level associated with investing a portion of a mutual fund in this company. It will begin by discussing the strengths, weaknesses, opportunities, and threats (SWOT) of AAPL. Based on the information gained in the SWOT analysis, I will determine what information is most relevant in my decision to invest in AAPL. I will identify AAPL’s stakeholders, internal and external, and describe their wants and needs. I will discuss how AAPL is fulfilling these stakeholder’s needs; if they are coming up short on fulfilling these needs, I will discuss what the company needs to do to ensure that they are indeed fulfilling these needs.
AAPL: A Business Analysis
SWOT
Strengths
Concerning strengths, AAPL has an abundance of them. AAPL is one of the most powerful companies in the world, if not the most powerful. AAPL has amassed a cash reserve of $76.2 billion dollars, which is roughly $2.5 billion more than the United States Government’s coffers (Phillips, 2011). This cash reserve is mainly attributed to AAPL possessing some of the most loyal follows of any company on the planet. AAPL does not make products that are in high demand, but rather Apple products are in high demand because Apple makes them. Even with all of this mentioned, there is still plenty of room for AAPL to grow. According to International Business Times (2011), the company has only a 4% - 5% market share on mobile phone, a similar market share on computer, and “ has opportunity to double or potentially even triple its market share in these end markets over the next few years, particularly with Greater and international as underpenetrated opportunities."
