Strategic role of corporate strengths

Project 3: Internal Environmental Analysis



September 26, 2022

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An internal environmental analysis involves performing an extensive review of various aspects of a company’s internal guidance and operations. The purpose of this project is to perform an internal environmental analysis of Apple Inc. The analysis will help to evaluate the position and strengths of the company through the functional, business, and corporate levels of strategy.

The strategic role of corporate strengths/weaknesses in the internal strategy analysis

The three levels of strategy are functional, business, and corporate levels.

Corporate-level strategies are formulated by the top management using input from the lower and middle management (Ketchen et al. 2013). Apple Inc. competes with various companies such as Amazon, Microsoft, Google, and IBM. Apple Inc. has to develop corporate-level strategies to maintain its competitive advantage. Apple Inc.’s corporate-level strategies include diversification and growth. Apple Inc. has pursued diversification at regional and product levels. The company has expanded its customer base by exploring new regions and introducing new products. Apple Inc. has embraced diversification to promote viability in the industry.

Apple’s corporate-level strategy involves expanding activities into new product lines similar to the current ones. The company has used related diversification to increase its cash flow and profits. Related diversification involves having direct links between various business units of a company. This strategy enabled companies to maximize their resources because they are shared among various business units. Apple Inc.’s core competency is innovation (Wittich et al. 2018). The company has developed innovative products such as iPhone, iPod, and iPad. Apple Inc. has used its core competency to develop its products. The use of the corporate-level strategy has allowed Apple Inc to take advantage of its core competencies.

The corporate-level strategy of growth is also followed by Apple Inc. Apple Inc. operates in very competitive markets. The company introduces upgraded versions of its products yearly. Apple’s financial statements show that the company focuses on growth. Apple focuses on growth strategies such as product development and market penetration (Podolny et al. 2020). The company has increased sales of its products in various existing markets. Apple Inc. attracts new customers by producing quality products.


Partial SWOT table

The partial SWOT analysis shows Apple Inc.’s strengths and weaknesses in the consumer electronics industry.

Innovation and technology

Apple Inc has a history of technological innovation. There is rapid innovation to keep the products competitive in the market. Apple has been the first company to introduce various innovative products such as Air Pods, iPads, and iPhones.

Strong brand

Apple Inc. is among the strongest and most valuable brands in the world. The company has many loyal customers across the globe. Apple Inc. is globally iconic.

High prices

Apple’s products are highly-priced. High prices prevent many customers from purchasing Apple’s products.

Poor distribution network

Apple’s distribution network is limited. Apple has few stores in various parts of the world even though the company has many customers. The limited distribution network makes it difficult for customers to easily acquire Apple’s products.

Software and accessories incompatibility

Apple’s software is incompatible with other software. Customers who purchase Apple’s products have to purchase everything from Apple. That is because the products are incompatible with software produced by other companies.


Apple’s key strength is innovation and technology. Most customers purchase Apple products because the company is innovative. Apple Inc. ensures that the quality of products is improved frequently. Apple Inc. conducts sufficient research and development to improve its product designs and innovate products. Apple Inc. also has a positive brand image (Wittich et al. 2018). The company is one of the top brands in the world. Apple Inc. has loyal customers because of the quality of its products.

The strategic implications are continuing to focus on growth and diversification by introducing new products. Apple Inc. has to diversify its products using its advantage in producing innovative products. Appel should also focus on growth because it has a positive brand image (Podolny et al. 2020). If Apple Inc. introduces new products, customers are likely to purchase the products because they are loyal to the company.

Apple Inc. can capitalize on its strengths by producing more products. Apple has strength in innovation and technology. The company can; therefore, produce more innovative products. The products would help Apple Inc. to compete in the consumer electronics industry. Apple Inc. should capitalize on its strength of being a strong brand by expanding its existing relationships with customers and other companies. Apple Inc (Wittich et al. 2018). can partner with other companies or acquire other companies to capitalize on its positive brand image.

Apple’s weaknesses include high prices, poor distribution networks, and software incompatibility. Apple charges high prices for its products. The company can improve on this by lowering the prices of its products. Apple Inc. also has a limited distribution network. Apple should improve on this by using more retailers and wholesalers. Apple Inc. should not rely only on its shops to sell its products. The company has to trust other distributors to sell its products in various parts of the world (Wouters 2015). Apple Inc. should make its products and software compatible with products made by other companies.

IFE Matrix and Analysis

Strengths weight Rating Weighted score
Innovation and technology 10 % 4 0.4
Management 10 % 4 0.4
Employees 10 % 3 0.3
Strong brand/brand reputation 10 % 4 0.4
Unique products 15 % 4 0.6
Financial ratios 5 % 3 0.15
High prices 15 % 1 0.15
Limited distribution network 10 % 1 0.01
Product incompatibility 5 % 1 0.05
Unethical business practices 5 % 2 0.05
Limited advertising 5 % 2 0.05
Total 100 %   2.56


The ratings are based on the importance of Apple’s strengths and weaknesses in the consumer electronics industry. One multiplies the weight by the rating to get the weighted score. Scores above 2.5 indicate internally strong companies while scores below 2.5 indicate internally weak companies (Wittich et al. 2018). The percentages of various weights indicate how important a certain strength or weakness is in the consumer electronics industry.

The IFE matrix shows that Apple Inc. is internally strong. The total weighted score was above 2.5. Apple Inc., should; however, work on improving on weaknesses such as high prices and its distribution network. High prices are a crucial factor in the consumer electronics industry. Some customers might not purchase highly-priced products when other quality products are available at affordable prices (Ketchen et al. 2013). Apple Inc. should ensure that its products are affordable. Apple should reduce costs such as marketing and the cost of raw materials to make its products more affordable. Apple Inc. should also expand its distribution network to make products easily accessible to customers.

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