Professional Documents
Culture Documents
TITLE
I LY
E NT
F E R
DIF
STRENGTHS STRENGTHS WEAKNESSES WEAKNESS
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
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
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 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
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
LO
W I POD SOFTWARES APPLE TV
(Selective investment) (Harvest/ Divest) (Harvest/ Divest)