3. STRENGHTS WEIGHT RATING WEIGHTED
SCORE
1. Only company who creates 0.1 3 0.3
PC’s and there OS as well.
2. Strong customer base i.e. 0.15 4 0.6
loyal customers.
3. Strong market share in 0.1 3 0.3
various industries like
education, communication
and publishing,
engineering, scientific,
technology and
entertainment.
4. Strong cash reserves. 0.1 3 0.3
4. WEAKNESS WEIGHT RATING WEIGHTED
SCORE
1. Management got unsettled 0.2 1 0.2
after JOB’s resignation.
2. Poor project management 0.1 2 0.2
for COPLAND.
3. Company didn’t have its 0.05 2 0.1
own distribution channels
resulting in reduction in
ordering.
4. High prices for PC’s and 0.1 2 0.2
there OS.
5. Cut offs in R&D 0.1 1 0.1
Expenditures.
TOTAL 1 2.3
5.
6. OPPORTUNITY WEIGHT RATING WEIGHTED
SCORE
1. Fanatical customers that 0.1 3 0.3
are marketing Apple
through Evangelist can
acquire its lost customers.
2. Apple is competing in a 0.15 3 0.45
growing and fast-changing
market.
3. Providing license to PC
Manufactures of MAC OS 0.05 2 0.1
in order to increase sells.
4. Extend corporations with 0.1 2 0.2
Microsoft.
5. Building systems on Order. 0.1 1 0.1
7. THREATS WEIGHT RATING WEIGHTED
SCORE
1. Market Competitors. 0.1 2 0.2
2. Reducing level of Apple’s 0.1 2 0.2
Customers.
3. Reducing in ordering by 0.1 3 0.3
Retailers.
4. Convincing other 0.05 3 0.15
businesses to stick with
Macintosh.
5. Growing customer base of 0.15 2 0.3
Windows based Computers
TOTAL 1 2.3
10. 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.
11.
12. SO:- WO:-
1. (S4,O2) Apple has got strong cash 1. (W3,O2) Apple is competing in a fast
reserves and the market in which growing industry but they don’t possess
Apple is competing is fast growing their own distribution channel. So Apple
and changing. So using their cash can open their own outlets i.e. Distribution
reserves, Apple can introduce new Channels (Forward Integration).
products in market. (Product
Development). 2. (W5,O2) Apple cut off the expenditure of
R&D despite of the fact they are competing
2. (S2,O5) Apple has got a strong in a fast growing and changing industry. So
customer base and considering this Apple can focus on their R&D and can
strength, Apple can avail the spend a bit more on it (Focus Strategy).
opportunity of building systems on
order for their potential customers
(Market Penetration).
ST:- WT:-
1. (S4,T3) Apple has got strong cash 1. (W4,T1) Apple has got strong competitors in
reserves and they have a threat in the market. Apple charges a high price on
reduction of ordering by retailers. So their PC’s that might give an edge to its
rather than depending on the competitors. So Apple can focus on the
retailers, Apple can open their own prices of their PC’s and rest of the products
outlets (Forward Integration). as well (Cost Leadership).
13.
14. 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 +3
Profit +2
Financial stability +3
Technological know how +5
Resource utilization +2
15/6= 2.5
