Apple Internal External Assesment

8/13/2019 Apple Internal External Assesment

1/13

Syed Muhammad Naseem Tahir

External Assessment


2/13

OPPORTUNITIES High demand of iPad mini and iPhone 5

iTV launch

Growth of tablet and smartphone markets

Obtaining patents through acquisitions

Damages from patent infringements

Increasing online sales

The production of computer anti-viruses

Strong growth of mobile advertising market


3/13

THREATS Rapid technological change

2013 tax increases

Rising pay levels for Foxconn workers

Breached IP rights

Price pressure from Samsung over key components

Strong dollar

Media piracy

Android OS growth

Competitors moves in online music market


4/13

EFE Matrix

Key External Factors Weightage Rating WeightedScore

Opportunities

High demand of iPad mini and iPhone 5 0.1 4 0.40

iTV launch 0.05 2 0.10

Growth of tablet and smartphone markets 0.08 3 0.24

Obtaining patents through acquisitions 0.06 3 0.18

Damages from patent infringements 0.05 3 0.15

The production of computer anti-viruses 0.05 4 0.20

Increasing online sales 0.8 4 0.32

Strong growth of mobile advertising market 0.04 2 0.08

Threats

2013 tax increases 0.05 3 0.15

Rising pay levels for Foxconn workers 0.06 3 0.18

Breached IP rights 0.03 2 0.06Price pressure from Samsung over key components 0.07 3 0.21

Rapid technological change 0.07 4 0.28

Media piracy 0.08 4 0.32

Competitors moves in online music market 0.05 3 0.15

Android OS growth 0.08 4 0.32

Total 1.00 3.34


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MAJOR COMPETITORS:


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COMPETITIVE PROFILE MATRIX

(SMARTPHONES OS)iOS Andriod

OSWindowPhone

Critical Success Factor WeightageRating Score RatingScore Rating Score

Market share 0.13 2 0.26 4 0.52 2 0.26

Number of apps in store 0.10 4 0.40 4 0.40 2 0.20

Frequency of updates 0.06 4 0.24 3 0.18 2 0.12

Design 0.7 3 0.21 3 0.21 3 0.21

Product Brand Reputation 0.05 3 0.15 3 0.15 2 0.10

Distribution Channels 0.11 2 0.22 4 0.44 3 0.33

Usability 0.11 3 0.33 3 0.33 3 0.33

Customization Features 0.04 2 0.08 4 0.16 2 0.08Marketing Capabilities 0.04 4 0.16 2 0.08 2 0.08

Company Brand Reputation 0.1 4 0.40 4 0.40 3 0.30

Openness 0.02 2 0.04 4 0.08 2 0.04

Cloud Integration 0.12 2 0.24 4 0.48 2 0.24

Rate of OS crashes 0.08 4 0.32 1 0.08 3 0.24

Total 1.00 3.05 3.51 2.53


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PORTER'S FIVE FORCES

Rivalry(Moderate)

Threats ofSubstitutes(Moderate)

SuppliersPower

(Moderate)

Threat ofNew

Entrants(Low)

BuyerPower(Low)


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PORTERS ANALYSIS

THREAT OF NEW ENTRANTS-LOW

Product differences

Economies of scale and experience

Providing more advanced technology by investing on

Research and Development.

High startup capital for new entrants.

Brand Loyalty

SUPPLIERS POWER-MODERATE Alternative Supplier of Technology

Outsourcing

unique and highly differentiated materials

Switching Cost


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BUYER POWER-LOW

Millions of Buyer Some of which are Large Corporations

Brand Loyalty

Unique Product Offering like iTunes, iBooks, iCloud etc

THREAT OF SUBSTITUTE-MODERATE

Mp3 players, Laptops, Notepads, SmartPhones.

company has achieved economies of scale, enabling it toproduce at a lower cost

Apple markets better than its competition

Costly softwares.

Existing Rivalry-MODERATE

Brand Identity

Lower prices of other products Offered By Rivals

Product differentiation

Diversity of competitors


10/13

Internal Assesment

By Sajjad Zaidi


11/13

STRENGTHS

Customer loyalty combined with expanding closedecosystem

Apple is a leading innovator in mobile device technology

Strong financial performance ($10,000,000,000 cash,gross profit margin 43.9% and no debt)

Brand reputation

Retail stores

Strong marketing and advertising teams


12/13

Weakness

High price

Incompatibility with different OS

Decreasing market share Patent infringements

Further changes in management

Defects of new products

Long-term gross margin decline


13/13

Value Chain Of Apple

Apple Internal External Assesment

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