Strengths Weight Rating Weighted Score

1. Revenues increased by 52% in 2010: Profit increased by

0.07 4 0.280.28
70%.

2. Seamless integration between products 0.04 3 0.12

3. Minimal long term debt 0.08 4 0.32
4. Increase in sales of 93% for iPhone 0.05 4 0.20
5. 38% total sales generated by iPhone 0.03 3 0.09
6. Sold 4.69 million iPads in first quarter of 2011 0.02 3 0.06
7. iTunes is a good source of revenue 0.03 3 0.09
8. All segment sales increased during 2010 0.05 4 0.20
9. Increasing earnings per share 0.03 4 0.12
10. Being a “first-mover” in the industry 0.10 4 0.40
Weaknesses
11. Only 16% of sales from portables 0.03 2 0.06
12. Only 10% of sales from desktops 0.02 1 0.02
13. iPod sales are decreasing steadily 0.04 2 0.08
14. Apple has no presidents of divisions and no Strategic
0.08 1 0.08
Business Unit (SBUs)
15. Development on iPhone lagged behind competitions 0.05 1 0.05
16. Sales heavily rely on the iPhone, which is seeing
0.05 1 0.05
increasingly high competition.
17. Unstable retail sales 0.07 1 0.07
18. There were no formal vision and mission statements 0.06 1 0.06
19. Incompatibility of devices to other software 0.05 2 0.10
20. Expensive products compared to other competitors 0.05 1 0.05
TOTAL 1 49 2.50
THE INTERNAL FACTOR EVALUATION MATRIX
 THE EXTERNAL FACTOR EVALUATION MATRIX
Opportunities Weight Rating Weighted Score
1. Competitors are generally reactive. 0.05 3 0.15
2. Tablet sales are expected to reach 246 million. 0.05 3 0.15

3. Potential economic recovery will enable greater expenditure

0.07 4 0.28
on luxury goods.
4. Consumers' expectations of products. 0.08 3 0.24
5. Recent generations are very brand conscious. 0.05 4 0.20
6. Creating more compatibility with Microsoft. 0.03 3 0.09
7. PCs known to have more viruses 0.04 3 0.12
8. Considerable amount of sales in Japan 0.04 3 0.12
9. Wide market range 0.06 4 0.24
10. Expansion of music streaming 0.04 3 0.12
Threats

11. Competitors in the mobile phone market are innovating

0.05 1 0.05
quickly(Android, etc.)
12. Competitors sell products more cheaply (Dell, HP, etc.) 0.07 1 0.07
13. Economic uncertainty. 0.09 1 0.09
14. Increasing competition in music downloads and online music. 0.03 2 0.06
15. Companies are not seeing Apple’s products being compatible
0.04 1 0.04
with their software.
16. Consumers have high expectations and demand a lot for their
0.05 2 0.10
products.
17. Partnering companies and intellectual property. 0.03 2 0.06
18. Market Penetration of other groups. 0.03 2 0.06
19. Some countries have many regulations that impair the
0.04 1 0.04
performance of Apple.
20. As a leading US company, legislators and regulators might
0.06 1 0.06
closely monitor their activities.
TOTAL 1 47 2.34
 Apple Microsoft HP Dell
Critical Success
Weight Rating Score Rating Score Rating Score Rating Score
Factors
Advertising 0.06 4 0.24 3 0.18 2 0.12 2 0.12

Product Quality 0.10 3 0.30 4 0.40 3 0.30 3 0.30

Product
0.15 4 0.60 2 0.30 3 0.45 3 0.45
Differentiation
Price Competitions 0.10 1 0.10 4 0.40 4 0.40 4 0.40

Customer Loyalty 0.05 4 0.20 4 0.20 3 0.15 3 0.15

Market Share 0.06 4 0.24 4 0.24 4 0.24 4 0.24

Product Value 0.12 3 0.36 4 0.48 3 0.36 3 0.36

Financial Position 0.05 4 0.20 4 0.20 4 0.20 4 0.20

Product Innovation 0.12 4 0.48 3 0.36 3 0.36 2 0.24

Green Products 0.06 3 0.18 3 0.18 3 0.18 3 0.18

Public Concern 0.05 2 0.10 3 0.15 2 0.10 3 0.15

Management
0.08 4 0.32 4 0.32 3 0.24 3 0.24
Experience
Total 1 40 3.32 42 3.41 37 3.1 37 3.03
THE COMPETITIVE PROFILE MATRIX