Bank of America

Bank of America: Investment Worthy?

Management/521

June 12, 2011

Rod Klein

Apple Inc, a Sound Business Investment?

The decision to invest in a company requires research and analysis. As an investment broker, I am currently considering investing in Apple, a leading technology development firm. Apple designs, manufactures and sells personal computers, mobile communications, portable digital players, and a host of other software and network services. In order to make a sound decision regarding this investment, a SWOT analysis will be conducted to understand the organization’s strengths and weaknesses, and the opportunities and threats it faces. In addition, Apples’ stakeholders will be identified along with an assessment of their needs and wants, and whether they are being addressed.

Potential Internal Strengths

Apple is masterful at infusing its brand image into the fabric of everything they do. Apples’ brand has been likened to a true religion. According to Manjoo, “Apple cultivates religious fervor among its adherents in a number of subtle ways, including its mysteriousness and its suggestion that customers are among the chosen ones” (Apple Nation, 2010). Apple is ranked 17th on Interbrand’s, top 100 brand list. They have a customer base that is extremely loyal to the brand. In addition, Apples’ strategic use of powerful sensory cues like iPod’s white ear buds, the Mac’s startup sound, and the shape of MacBook’s back panel show how the product itself is a marketing tool. According to Datamonitor, “Apple leverages its brand image to differentiate its product offering and drive sales” (Apple, 2010). This is an advantage over regional and global competitors.

Potential Weaknesses

Legal proceedings. Claims of patent infringement could adversely impact Apple’s financial condition and operating results. While these claims have not been fully adjudicated there could be large financial cost if the decisions are not...