Professional Documents
Culture Documents
SUBMITED BY:
Ilyas Ahmad Farooqi
REGISTRATION NO:
L1F10MCOM0155
SUBMITED TO:
Prof. Muzaffar Asad
SUBJECT:
Strategic Management
Strength
Brand name
Growing sale of ipod and iphones
Low debt
Wide ranges of innovative products
Increase in number of retail stores
Market share and global expansion
Loyalty of employees
Research and development
Weakness
No manufacturing units
High product prices
Opportunity
Customer loyalty
People like new features and innovative product
Threats
Weight
0.15
0.05
0.1
0.1
0.05
0.1
0.1
0.2
0.1
0.05
1.0
Rate
4
3
4
1
4
2
4
4
4
1
Weighted average
0.6
0.15
0.4
0.1
0.2
0.2
0.4
0.8
0.4
0.05
3.3
Weight
0.25
0.2
Rate
4
3
Weighted average
1
0.6
0.15
0.1
0.1
0.2
1.0
1
4
3
4
0.15
0.4
0.3
0.8
3.25
Apple
Weight Ratin
success
Weighted
score
Dell
rating Weighted
IBM
rating Weighted
score
score
factor
Continuous
0.2
0.8
0.4
0.6
innovation
Distribution
0.15
0.45
0.60
0.60
network
Product
0.15
0.6
0.45
0.45
quality
Customer
0.15
0.45
0.45
0.45
0.2
0.15
1.0
4
4
0.8
0.6
3.7
2
3
0.4
0.45
2.75
2
4
0.4
0.6
3.10
loyalty
R&D
Brand name
The famous BCG matrix classifies a firms product portfolio into four strategic business
units (SBU): Stars, Question Marks, Cash Cows and Dogs. Within each SBU, there are
again four potential strategies to take: build market share, hold market share, harvest
(reduce investment) and divest (phase-out).
Competitive Positioning
Apple have a clearly defined premium strategy: they offer more benefits for a higher
price. According the Value Proposition Matrix (above), any of the white squares are
competitive strategies. But, I personally believe a more for more position is perhaps
one of the more effective. This is because it is highly profitable and hard for competitors
to copy a premium identity.
Developing a premium, or luxury image, is incredibly hard for both new and existing
brands. Hence, it is highly unlikely any of Apples competitors will risk undertaking an
upward brand stretch and gain a premium status. Moreover, this type of branding allows
a premium price tag to be attached to any product regardless of the quality with an
Apple logo, allowing the firm to make huge gross margins.