You are on page 1of 2

Apple Inc.

Tows Matrix
Posted on April 19, 2012

Strengths / internal

Weaknesses / internal

Tows Matrix for Apple Strong brand image provides


Inc.
an edge over competitors.
Net sales of iPhone increased
93% to $25.2 billion. Sales of
music and other related
products increased 23%
compared to 2009
Robust financial performance
strengthens investors
confidence and provides
capital for future growth
avenues. The stock price in
the year 2011 alone rose
from 200s to upper 400s.
Lack of debt results in higher
R&D budget driving
innovation and new product
ideas
Apple Inc. was a leader in
gross profit margin and
operating margin in 2011.

Patent infringement lawsuit


may affect financial
condition and operating
results
Product recalls may harm
Apples reputation and add
significant warranty and
other expenses.Product
recalls were raised of the
iPhone 4 due to antenna
problems
In the suit between Nokia
with the International Trade
Commission about infringed
patents of the mobile
phones, portable music
players and computers,
customers received a free
case that will mitigate the
reception problems. This
added additional expenses
to the companys bottom
line.

Opportunities /
external

S/O

W/O

Strong growth in
smartphone and tablet
markets to boost
Apples revenues.
iPhone handset unit
sales increased by 32.3
million units or 81%
Robust outlook for
mobile advertising
market provides
growth opportunity
Strong growth in a
global smartphone
industry

Increase IPhone and related


product sales through
online advertisement. Overall
net sales increased by 66%
from 2010
Apples brand recognition
throughout all its markets
can strengthen by the
offering less expensive
version of each product to
appeal to lower income
market
The company did not pay
dividends because it
reinvests the capital in the
operation of the business

Global expansion through


Mexico, Portugal, France and
Australia
Robust outlook for mobile
advertising market provides
growth opportunity
Creating departament
responsible for recalls and
product warranties to
maximize customers
satisfaction

Threats / external

S/T

W/T

Rising popularity of
Google Android may
affect its market share
Strong foreign market
presence of Hewlett
Packard
Intense competition
may affect the revenues
and profitability.
Decrease in iPod net
sales of $821 by 10%
and iPod unit sales by
15%
Dependence on specific
suppliers may affect its
operations and
production
Product substitution and
availability of Samsung
tablets
Global economic
conditions could
materially adversely
affect the Company

Purchase voice and data


network to complement the
smartphone division will help
acquire stronger market
position
Robust financial performance
strengthens investors
confidence and provides
capital for future growth
avenues, such as opening
stores and expanding ecommerce throughout the
global market.
Focused R&D driving
innovation and consolidating
its market position. Apples
R&D expenditure was $1,782
mil in 2010, an increase of
33% from 2009. This
provides the company with
new technological
innovations which can be
used in Apple products.
Form a partnership with
Google to supplement the
Apple products.

Long term agreements


between Apple Inc. and the
suppliers to guarantee
production commitments
Constant promotion of the
brand will create stronger
awareness and demand for
products
Participation in local
communities and charities to
create positive image which
was shadowed by lawsuits
Continue investment in
technology in order to stay
ahead of competitors and
become a market leader

You might also like