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SWOT Matrix and BCG Matrix for

Apple Inc.
Presented by:
Ankit Gupta
Archita Modi
Heta Damodar
Nishant Dharamsi
Background
Apple Inc. is an American multinational corporation that
designs, develops, and sells consumer electronics,
computer software and personal computers.
Best-known hardware products are the Mac, the iPod
music player, the iPhone smartphone, and the iPad tablet
computer.
Its the largest publicly traded corporation in the world by
market capitalization, with an estimated value of US$415
billion as of March 2013.
As of May 2013, Apple maintains 408 retail stores in
fourteen countries as well as the online Apple Store and
iTunes Store, the latter of which is the world's largest music
retailer.

SWOT
Matrix
Strengths
1. Global Company
2. Strong Brand Image
3. Diverse Distribution Avenues
4. Design, Manufacturing &
Marketing expertise
5. Wide Market Circle
6. Reputation for Innovation
7. Master with 3
rd
party digital
content
8. Horizontal and Vertical
Integration
9. Financially Sound
10. Entrepreneurial culture
11. Customer loyalty

Weaknesses
1. Subject to supply shortages & price
increases
2. Difficulty controlling outsourcing
processes
3. Accusations of infringement upon patents
of other organizations
4. Dependence on iPhone and iPad limited
variants
5. Lack of different price points with
products
6. Dependence on cellular network
providers
7. Cost of product

Opportunities
1. Demand in Education
2. Demand in Enterprise &
Government
3. General Use Demand
4. Demand for Mobile
Communications
5. Demand for Media Devices
6. APPLE Television
7. Strong growth opportunities in
emerging nations
S/O Strategies: GROWTH
Continue aggressive international growth
strategies S1-O7

Strengthen partnerships with Education S12-
O1

Increase APPLE television content S4/S6-O6
Capitalize on the smart-phone revolution
S4,S7-O4,O7

Continue to aggressively develop mobile app
market S6-O4,O5,O7

W-O Strategies: Internal Fix-it

Improve domestic supply chain (W1-
O3)

Aggressively continue to pursue R&D
product development (W4-O1-07)

Continue to develop superior
product(s) at lower cost point (W7-O7)

Threats
1. Industry constantly evolving
2. Highly Competitive Market
3. Outsourcing Difficulties
4. Inability to meet R&D
requirements
5. Imitation of Apple products
6. Violation of patents and copyrights

S-T Strategies: External Fix-it
Aggressively pursue new product development i.e.;
wearable & pen computing S6-T4

Strengthen partnerships with band width vendors
i.e.; international market S1-T1-T2

Evaluate niche market concentration S12-T1,T2
Eval Backward/FWD Integration (S9:T3)

W-T Strategies: Eliminate/Survival


Strive to avoid patent infringement
within tech community (W3-T4,T6)

BCG MATRIX
STARS QUESTION MARKS
CASH COWS
DOGS
BCG MATRIX
STARS:
This would be the iPad because it has a high share of the rapidly growing tablet market. As the iPad
is in its growth phase of the product life-cycle, the product is beginning to lose its first-mover
advantage as other manufacturers begin to launch their own tablet devices. Hence, Apple should
invest heavily into marketing the iPad in order to grow sales to maintain their share (sales need to
grow at the same rate as overall market sales to maintain market share within a growing market).
But in the future, when market sales become stable, Apple should harvest the product to turn it
into a Cash Cow to fund other SBUs.

QUESTION MARKS:
Despite Apples best attempts, PCs with Microsoft operating systems still continue to dominate the
PC market. Much of this is down to strong business-to-business marketing and high switching costs
for businesses and consumers, alike. Apple could potentially used three strategies for their Mac
software:
1) Divest this could allow Apple to devote more time on their most profitable products, but it is highly
unlikely as the Mac is part of the firms brand identity.
2) Build Apple could potentially invest lots and lots of resources to try to turn Macs into a star,
however even with Apples huge cash pile, it is questionable if it is even possible to beat Microsoft-
powered PCs.
3) Hold this is the most likely strategy. Apple will probably continue to develop new Macs and support
existing customers, however investments will be kept at a minimum and be target towards the iPad.

BCG MATRIX
CASH COWS:
Apples source of steady flows of income are clearly the iPhone and the iPod; both the
MP3 and mobile phone market have reached saturation and Apple has a high share of
both these markets.
As the iPod is reaching the decline stage of the PLC, Apple is beginning to harvest the
product. That is, slowly reducing investment in marketing iPods to increase their
profitability; by generating more cash, further investments can be made into question
marks or stars.
In the future, Apple will probably only maintain their market share of the iPhone. It is a
highly profitable to generate sales from existing customers from upgrades, which can be
almost guaranteed after a consumer invests heavily in downloads from the app store.
DOGS:
Lastly, Apple TV a device that allows media files in iTunes to be played on a TV has
never really caught-on. By launching a second and third generation, Apple have shown
they are committed to building sales. However, unless the overall market for digital
media receiver grows, it could be more profitable to divest the product.

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