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STRENGTHS STRENGTHS WEAKNESSES WEAKNESS

2. DECENTRALIZED 2.OPERATING EXPENCES

1.ABILITY TO GROW 1. Weak relationship with
MANAGEMENT
Intel and Microsoft.
3. WELL KOWN BRAND 4.BUSINESS MODEL
3. RAPID EXPANSION EMPLOYEE
4.
TURNOVER
5. COST –LEADER 6.EMPLOYEE EFFICENCY
5. ONLY TARGETING ON SUB 6. ADVERTISING
MARKET
7. PROCESS ORIENTED R&D 8. HOME IMPROVE MENT = HD
7. PROMOTION ISSUES 8. Weak presence in business
arena.
9.TECHNOLOGY 10. LISTENING TO CUSTOMERS
9. OVER LOAD 10. Dependency on new
product launches.
11. CUSTOMER SERVICE 12. WIDE RANGE OF
PRODUCTS FROM TINY
MACMINI TO POWERMACK G5 11. LEGAL CASES 12. PRODUCTIVITY OF
NEW STORES
13. 2ND LARGEST IN US 14. DISTINCTIVE PDT RANGE 13. NO INTERNET 14. 18 % DECREASE IN
FOCUS CASH
15. INNOVATIVE PRODUCTS 16. COMPETITIVE 15. NO OPERATIONS IN 16. PRODUCT SPOILAGS
EXPANSION SOUTH – EAST
17. Weak presence in 18. VENDOR PROBLEMS
17. THERE ARE 20 REGIONAL 18. Personal involvement of
markets other than
MANAGERS CEO education and publishing

19. Financial strength 20. Casual working environment 19.Slow turn around on 20. NO INCENTIVES TO
in the corporate offices
high demand products. EMPLOEES
Internal Factor Evaluation (IFE) Matrix
Key Internal Factors Weight Rating Weighted
Score
Strengths
iTunes Music Store is a good source of revenue, especially with the iPod and the 0.15 4 0.60
availability
Apple’s nicheon audience
Windowsprovides
platform.the company with some insulation from the direct 0.10 3 0.30
price competition.
Revamping desktop and notebook lines. 0.10 3 0.30
Low debt—more maneuverable. 0.06 4 0.24
Developing own software and hardware. 0.14 3 0.42
Good brand loyalty. 0.05 3 0.15
Web technology can be used to improve product awareness and sales. 0.10 4 0.40

Weaknesses
Dependency on new product launches. 0.06 1 0.06
Weak presence in business arena. 0.07 1 0.07
Slow turn around on high demand products. 0.03 2 0.06
Weak relationship with Intel and Microsoft. 0.10 1 0.10
Weak presence in markets other than education and publishing. 0.04 2 0.08
Total 1.00 2.78
ANSOFF’S MATRIX
 Recommendations
Strategy 1
•Open six computer retail stores (not just peripheral and accessories). Apple currently has
stores opened throughout the United States with only peripheral and accessories for their
computers. Adding the hardware should generate more hands-on awareness and use
already established locations.
•This will increase product accessibility for those who wish to view items other
than just accessories and increase awareness of the originality of Apple’s
products.
•2 percent increase over the next 2 years in sales representatives for the
computer hardware.
Strategy 2
•Contract music spokesperson to attract the upcoming generation who are attending high
school and college. This will invoke a sense of style and linking apple with a distinctive and
memorable top 10 hit. This will stay in the customer’s awareness and influence future
purchase decisions.
•Contracting one music spokesperson estimated $6 million.
Strategy 3
•Add more features to current products for greater Wintel compatibility. Features such as
iTune software compatible with windows based computers, Office programs loadable from
PC installation disk (This would require a software agreement with Microsoft). In late
October 2003 Apple released an iTune software package that is PC ready.
•It will increase the United States market share at least 30 percent for the next 2-
3 years.
•$50 million is the estimated cost for Research and Development.
 Cost of Recommendations
• Open 6 computer retail stores (not

just peripheral and accessories)
•  100M
• Contract music spokes person 
(Sarah McLachlan | 50 cent) for a
cost of  6M
• 
• Start production of Wintel
compatible software for a cost of
 50M
 

 Total expected cost

 156M
=
 SWOT MATRIX
S-O Strategies W-O Strategies

Increase awareness through the web of the Increase ties with Microsoft and Intel and their
immunity of Mac products to worms and viruses products
Advertise using individuals that will link Promote to business the safety of having a

Generation X & Y to the iTunes and other related worm and virus free computer by using Mac.
products 

Using movies and music groups that are geared

towards Gen X and Y to promote computers and

laptops

S-T Strategies W-T Strategies

Increase and promote the compatibility to Improve relationship with Microsoft and Intel so
Window operating system that companies will see them as compatible.
Promote the originality of Apple computers and Increase productivity and turn around of high

the different style and stable system that is demand products to compete with Dell and HP
slightly more but worth the price difference in
style, stability and speed

APPLE IN THE MARKET(AS OF
24/04/09)
 B.C.G MATRIX

I PAD MAC MINI

I PHONE I TUNES
 THREATS THREATS
OPPORTUNITIES OPPORTUNITIES

2.INNOVATION
2. LATE ENTRANT IN E-
1.SALES FORCE 1. COMPETITION COMMERCE
3. FINANCIAL STABLITY 4.DEDICATED 3.EMPLOYEE TURNOVER 4. GEO GRAPHIC LOCATION
TRAINING

5. ON-TIME DELIVERY 6. E-COMMERCE 5.ENVIRONMENTAL ISSUES 6. POLITICAL ISSUES

7. EUROPEAN 8. FORMING
MARKETS PARTNERSHIP WITH 7. SUPPLIER THREAT 8. BY PASSED ATTACK
SUPPLIERS
9. Foreign currency risks 10. SATURATION OF
9.Strategic partnerships 10.OVERSEAS MARKET
EXPANISION
11. NO DIFFERENTIATION 12. HIGH MARKET
ATTRACTIVENESS
11. COMMUNITY 12. GOOD MARKET
AWARENESS RESEARCH 13. THREAT OF INFLATION 14. PERCEPTION EFFECTON
13. IT PROJECTS 14. GLOBAL BUSINESS LOW COST

15. HIGH PRODUCT 16.SOME UNLOYAL

15. ENVIRONMENTAL 16. Acquisitions SUBSITUTION CUSTOMERS
FOCUS
17. Foreign currency risks 18. Undetected product
17. HIGH 18. MORE THAN errors and security
ADVERTISEMENT THAN DOUBLE NO OF
COMPETITORS STORES THAN LOWES
19. The economy 20.
Enterprises have cut back
19. Ability to leverage 20.HIGH MARKET on technology purchases
market position SHARE
 ge matrix
IND BUSINESS STRENGTH
US
STRONG AVERAGE WEAK
TR
Y HI
AT GH I PHONE I MAC OPERATING SYSTEM
(Invest & Grow) (Invest & Grow)
TR (Selective investment)
AC
TIV ME
EN DI I PAD COMPUTERS PROCESSOR
ESS UM (Invest & Grow) (Selective investment)
(Harvest/ Divest)

LO
W I POD SOFTWARES APPLE TV
(Selective investment) (Harvest/ Divest) (Harvest/ Divest)