Syed Muhammad Naseem Tahir

External Assessment

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

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

EFE Matrix
Key External Factors 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 The production of computer anti-viruses Increasing online sales Strong growth of mobile advertising market Threats 2013 tax increases Rising pay levels for Foxconn workers Breached IP rights Price pressure from Samsung over key components Rapid technological change Media piracy Competitors moves in online music market Android OS growth Total Weightage 0.1 0.05 0.08 0.06 0.05 0.05 0.8 0.04 0.05 0.06 0.03 0.07 0.07 0.08 0.05 0.08 1.00 Rating 4 2 3 3 3 4 4 2 3 3 2 3 4 4 3 4 Weighted Score 0.40 0.10 0.24 0.18 0.15 0.20 0.32 0.08 0.15 0.18 0.06 0.21 0.28 0.32 0.15 0.32 3.34

MAJOR COMPETITORS:

COMPETITIVE PROFILE MATRIX

(SMARTPHONES OS)
iOS Critical Success Factor Market share Number of apps in store Frequency of updates Andriod OS 4 4 3 0.52 0.40 0.18 Window Phone 2 2 2 0.26 0.20 0.12 Weightage Rating Score Rating Score Rating Score 0.13 0.10 0.06 2 4 4 0.26 0.40 0.24

Design
Product Brand Reputation Distribution Channels Usability Customization Features Marketing Capabilities Company Brand Reputation Openness Cloud Integration Rate of OS crashes Total

0.7
0.05 0.11 0.11 0.04 0.04 0.1 0.02 0.12 0.08 1.00

3
3 2 3 2 4 4 2 2 4

0.21
0.15 0.22 0.33 0.08 0.16 0.40 0.04 0.24 0.32 3.05

3
3 4 3 4 2 4 4 4 1

0.21
0.15 0.44 0.33 0.16 0.08 0.40 0.08 0.48 0.08 3.51

3
2 3 3 2 2 3 2 2 3

0.21
0.10 0.33 0.33 0.08 0.08 0.30 0.04 0.24 0.24 2.53

PORTER'S FIVE FORCES

Threats of Substitutes (Moderate)

Threat of New Entrants (Low)

Rivalry (Moderate)

Suppliers Power (Moderate)

Buyer Power (Low)

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

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 to produce 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

Internal Assesment

By Sajjad Zaidi

STRENGTHS

Customer loyalty combined with expanding closed ecosystem

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

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

Value Chain Of Apple