APPLE’s CASE STUDY

HALLAR MEMONSUMMAN SAQLAIN

GOHAR IQBAL

Presented By:-

IFE MATRIX

STRENGHTS WEIGHT RATING WEIGHTED SCORE

1. Only company who creates

PC’s and there OS as well.

2. Strong customer base i.e. loyal customers.

3. Strong market share in various industries like education, communication and publishing, engineering, scientific, technology and entertainment.

4. Strong cash reserves.

0.1

0.15

0.1

0.1

3 4 3 3

0.3

0.6

0.3

0.3

WEAKNESS WEIGHT RATING WEIGHTED SCORE

1. Management got unsettled after JOB’s resignation.

2. Poor project management for COPLAND.

3. Company didn’t have its own distribution channels resulting in reduction in ordering.

4. High prices for PC’s and there OS.

5. Cut offs in R&D Expenditures.

0.2

0.1

0.05

0.1

0.1

1

2

2

2

1

0.2

0.2

0.1

0.2

0.1

TOTAL 1 2.3

EFEMATRIX

OPPORTUNITY WEIGHT RATING WEIGHTED SCORE

1. Fanatical customers that

are marketing Apple through Evangelist can acquire its lost customers.

2. Apple is competing in a growing and fast-changing market.

3. Providing license to PC Manufactures of MAC OS in order to increase sells.

4. Extend corporations with Microsoft.

5. Building systems on Order.

0.1

0.15

0.05

0.1

0.1

3 3 2 2 1

0.3

0.45

0.1

0.2

0.1

THREATS WEIGHT RATING WEIGHTED SCORE

1. Market Competitors.

2. Reducing level of Apple’s

Customers.

3. Reducing in ordering by Retailers.

4. Convincing other businesses to stick with Macintosh.

5. Growing customer base of Windows based Computers

0.1

0.1

0.1

0.05

0.15

2 2 3 3 2

0.2

0.2

0.3

0.15

0.3

TOTAL 1 2.3

IEMATRIX

4 3 2.3 2 14

3

2.3

2

1

IFE

EFE

IE Interpretation As result of IE Matrix is concluded in Middle portion i.e. in 5th cell, the perception is “Hold and Maintain”.

Strategies applied in Hold and Maintain situation are Market Penetration and Product Development.

TOWS

SO:-

1. (S4,O2) Apple has got strong cash reserves and the market in which Apple is competing is fast growing and changing. So using their cash reserves, Apple can introduce new products in market. (Product Development).

2. (S2,O5) Apple has got a strong customer base and considering this strength, Apple can avail the opportunity of building systems on order for their potential customers (Market Penetration).

WO:-

1. (W3,O2) Apple is competing in a fast growing industry but they don’t possess their own distribution channel. So Apple can open their own outlets i.e. Distribution Channels (Forward Integration).

2. (W5,O2) Apple cut off the expenditure of R&D despite of the fact they are competing in a fast growing and changing industry. So Apple can focus on their R&D and can spend a bit more on it (Focus Strategy).

ST:-

1. (S4,T3) Apple has got strong cash reserves and they have a threat in reduction of ordering by retailers. So rather than depending on the retailers, Apple can open their own outlets (Forward Integration).

WT:-

1. (W4,T1) Apple has got strong competitors in the market. Apple charges a high price on their PC’s that might give an edge to its competitors. So Apple can focus on the prices of their PC’s and rest of the products as well (Cost Leadership).

SPACEMATRIX

FINANCIAL STRENGHT (FS):-

Risk +1

Long term debt +1

Cost of Sales +3

Net Income +2

Asset +3

Liabilities +2

12/6= 2.0

INDUSTRIAL STRENGHT (IS):-

Growth Potential +3Profit +2Financial stability +3Technological know how +5Resource utilization +2

15/6= 2.5

ENVIRONMENTAL STABILITY (ES):-

Technological Changes -4Demand Variability -5Price range -6Managements cooperation -5Competitive pressure -6Service providing -3 -29/6 = -4.8

COMPETITIVE ADVANTAGE (CS):-

Market share -3Product quality -4Customer loyalty -2Competition capacity utilization -5Technological knowhow -2Control over suppliers & Distributor -6 -22/6= -3.6

SPACEFS

+6

+1

+5+4+3

+2

-6

-5

-4

-3

-2

-1-6 -5 -4 -3 -2 -1 +1 +2 +3 +4 +5 +6

CA IS

Conservative Aggressive

Defensive Competitive

ES

-2.8

-1.1

Strategies:Market DevelopmentProduct DevelopmentInnovationConcentric Diversification

F.S +2.0E.S -4.8 -2.8

C.A - 3.6I.S +2.5

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1.1