Apple Business Strategy

Internal Factor Evaluation (IFE) Matrix for Apple Strengths | Weight | Rating | Wt.Score | 1. Customer loyalty combined with expanding closed system 2. As a leading innovator in mobile device technology 3. Strong financial performance 4. Powerful Brand reputation 5. Retail stores 6. Strong marketing and advertising teams | 0.120.100.090.110.090.10 | 443434 | 0.480.400.270.440.270.40 | Weakness | | | | 1. High Price 2. Incompatibility with different OS 3. Patent infringements 4. Further changes in management 5. Defects of new products 6. Long-term gross margin decline | 0.070.080.080.090.07 | 11122 | 0.070.080.080.180.14 | Total | 1.00 | | 2.81 |

External Factor Evaluation (EFE) Matrix for Apple Opportunities | Weight | Rating | Wt.Score | 1. High demand of iPad mini and iPhone 5 2. iTV launch 3. Emergence of the new provider of application processors 4. Growth of tablets and smartphones markets 5. Obtaining patents through acquisitions 6. Damages from patent infringements 7. Strong growth of mobile advertising market | 0.090.080.090.110.080.070.10 | 4213323 | 0.360.160.090.330.240.140.30 | Threats | | | | 1. Rapid technological change 2. Price pressure from Samsung over key components 3. Android OS growth 4. Competitors’ moves in online music market 5. Very limited ability to customize compared to other smartphones in the market | 0.110.100.090.08 | 3221 | 0.330.200.180.08 | Total | | | 2.41 |

Competitive Profile Matrix (CPM) for Apple | | Apple | Samsung | Sony Ericsson | Critical Success Factors | Weight | Rating | Weighted Score | Rating | Weighted Score | Rating | Weighted Score | 1. Advertising 2. R&D Development Speed 3. Customer Service 4. Financial Position 5. Price Competitive 6. Consumer Loyalty 7. Product Quality 8. Global Expansion 9. Top Management Expertise 10. Sales Distribution 11. Market Share 12. Fashion Design 13. Advanced Technology 14.