apple internal external assesment
TRANSCRIPT
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8/13/2019 Apple Internal External Assesment
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Syed Muhammad Naseem Tahir
External Assessment
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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
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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
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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
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Internal Assesment
By Sajjad Zaidi
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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
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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
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Value Chain Of Apple