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TOWS MATRIX FOR APPLE, INC. STRENGTHS - S iTunes Music Store is a good source of revenue, especially with the iPod and the availability on Windows platform. Developing own software and hardware. Apples niche audience provides the company with some insulation from the direct price competition. Revamping desktop and notebook lines. Web technology can be used to improve product awareness and sales. Low debt - more maneuverable. Good brand loyalty. O - OPPORTUNITIES S-O STRATEGIES Increase in worms and viruses on Increase awareness through the web PCs. of the immunity of Mac products to Large population (Gen X&Y) worms and viruses. (S5, O1) which are extremely individualistic Advertise using individuals that will and name brand conscious. link Generation X & Y to the iTunes Weak ties with Microsoft products. and other related products. (S1, O2, Downloadable music and MP3 O4, O5, O6) players are highly marketable. Using movies and music groups that Increase sales of computers online are geared towards Gen X and Y to by 25 percent. promote computers and laptops. (S3, Increase sales of laptops by 20 S5, O2, O5, O6) percent. T THREATS S-T STRATEGIES Companies not seeing Apple as Increase and promote the compatible with their software. compatibility to Window operating Dell and HP are major system. (S5,T1) competitors. Promote the originality of Apple Increasing competition with music computers and the different style and downloads. stable system that is slightly more but Dell does not invent but provides worth the price difference in style, computers at a more cost effective stability and speed. (S2, S5, T2, T4, rate for customers. T5) Recessionprice of Apple computers are higher. Intels future Pentium release. WEAKNESSES - W Weak relationship with Intel and Microsoft. Weak presence in business arena. Dependency on new product launches. Weak presence in markets other than education and publishing. Slow turn around on high demand products.

W-O STRATEGIES Increase ties with Microsoft and Intel and their products.(W1, W2, W4 O2, O3) Promote to business the safety of having a worm and virus free computer by using Mac. (W2, W4, O1, O5, O6)

O-T STRATEGIES Improve relationship with Microsoft and Intel so that companies will see them as compatible. (W1, W2 T1) Increase productivity and turnaround of high demand products to compete with Dell and HP (W5, T2)