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In this week’s assignment I will discuss the importance of a SOOT analysis and how it works in relation to businesses. A SOOT analysis is a useful tool used by market researchers, business owners and/or individuals that help identify the strength, weakness, opportunities and threats. A SOOT analysis identifies this through both the internal and external factors of a company or their competitors (Fine, 58). It is very useful tool for businesses because you see where your current position is in a market.
In my opinion it is a really good approach because it gives the business owners a new approach. By this approach business owners and stakeholders are able to see what they are doing right and what they need to work on from an outside perspective. Many times a company can only assume what problems they may be facing. However with a SOOT analysis the company no longer assumes they actually know for sure where they need to make improvements (Fine, 20). A SOOT analysis also helps the stakeholders create a strategy to distinguish themselves from their competitors.
This may help include creating a new advertising campaign, new branding, lower prices or change the overall target audience’s demographic. As mentioned previously a SOOT analysis looks at both the internal and external factors within a company. SOOT represents the strengths (S) and weaknesses (W) these are the internal factors, and the opportunities (O) and threats (T) these include the external factors. The internal factors include leadership or management performance, human resource responsibilities, the company’s culture and the treatment of employees.
The external factors include pricing, reputation, accessibility (is it ass or difficult to buy products), social expectations and the location (Fine, 20). Strengths are what give a company an advantage over other company. Weaknesses are characteristics that place a business at a disadvantage to others. Opportunities are things that the company doesn’t do well but if worked on could eventually be something the company does well. Threats are what if not corrected will eventually cause trouble for the business. In my opinion the SOOT analysis works perfectly together because everything affects the next.
SOOT analysis can examine both the overall company and pacific departments. For example a SOOT analysis can be used by Apple Inc. To examine the entire brand of Apple, or just one product in particular the Phone. When using a SOOT analysis to look at the entire company I believe it is not as useful because instead of working on smaller aspects it looks mainly at the big picture. Apple, Inc. Is considered to be the second largest information technology companies next to Sony. The company was founded in April 1976 by Steve Jobs and Steve Woozier.
The two men started Apple with a dream that they wanted to make computers that were considered to e user friendly (Brasher, 30). Apple started with just the creation of a Pod MPH player. However as of 2015 Apple Inc. Has branched out to over several types of ultrasonic. These include phones, desktop computers, pads and laptops, watches and television. Apple Inc. Has several strengths that distinguish them from the company. The two main strengths that I will discuss are their brand image and their financial performance.
Apple has one of the strongest brand images in the mobile phone industry. Apples products, logos and branding devices are recognizable by their sleek surface and silver go of a half bitten on the back of their products. Apple has a high level of brand awareness and brand recognition for all of its products in all its markets. These include the mobile industry, pod industry and the computer industry. In 2008 the Apple Inc. Brand worth grew from $11 ,037 in 2007 to $13,724 million (Brasher, 25). Apple Inc. Rand positioning is high among competitors and consumers. Brand personality refers to the human-like traits or attributes which are present in a particular brand. Brand personality is an important branding concept because it helps develop characteristics of the rand. Brand personality is what people relate to and helps people actually feel the presence and personality in the brand itself. Brand personality gives the customers an experience which is unique of the characteristics of the brand that distinguishes it from others (Carlton, 20).
Apple represents energetic lifestyle, regaining liberty, imagination, passion, innovation, dreams, hope, and empowering the people through technology (Carlton, 22). Apple Inc. Is one of the only brands that which the company associates with the brand can be felt through the experience of their products and services. Apple Inc. Brands are all about simplicity and being user friendly. Apple Inc. Pushes the envelope by removing complexity from the minds of customer as through applications. Apple Inc. Has two main weaknesses that I would like to discuss.
One of their main weaknesses is that their product is not always readily available to customers. When the Apple 6 phone came out I remember the lines were outside of the store. Many people have to pre-order their phone on the cell phone company’s website or you will not be able to receive them for several weeks. Another weakness of Apple Inc. S that their prices are high compared to the competition. The Apple phone is $200 more expensive then Android at market value (Brasher, 30. Below is a graph the shows the prices of Apple’s products. Arrow, J. (2012, February 7). CHART OF THE DAY: Apple IS pulling In Of All Mobile Industry’ Revenue, And 75% Of All Mobile Profits. Retrieved February 28, 201 5, from http://www. Businessperson. Com/chart-of-the-day-apple-is- pull inning-in-40-of-all-mobile-industry-revenue-and-75-of-ail-mobile- profits-2012-2 Apple Inc. Has opportunities that if corrected could change Apple into one of the to phone sellers. Apple has the opportunity to develop its tunes and music player technology into a mobile phone format.
Apple’s tunes music store has been developed for the phone so users can manage the tracks they store on it. An opportunity is that the Apple is only available to Apple users. If Apple Tunes and Apple Store were more accessible to more the Apple users I believe that not only would they have more customers but also create more revenue. As mentioned previously Apple Inc. ‘s biggest threat to the company is their high prices. Apple Inc. Is a high-end luxury and user friendly product that is not affordable to everyone. Although Apple Inc. S sold at higher price than other products they still have a high brand loyalty. According to an article by Lindsay Knurl, one of the main reasons that so many people “ignore the price tag of a new Apple device, and buy with unquestioning urgency, is that the brand name “Apple” means something to many people. There is also a feeling of security that the company has been able to instill in its loyal customers (Knurl,201 2)”. Another reason that Apple Inc. An look pass a threat they have is to many customers the product is worth the investment.