The Apple Corporation was founded in 1976 by Steve Wazaik, Steve Jobs and Ronald Wayne. The company is based on the industry of computer hardware, software, consumer electronics and digital distribution. Headquarter of the company is in Cupertino, California, United States. The company has very wide range of its product line as well as the services and is serving all over the world. The company is controlled and executed by Chief Executive Officer Tim Cook, Chairman Arthur D. Levinson etc. The Apple Corporation is the one of the largest publically trading company in world.

Apple Inc. External Factor Evaluation (EFE) Matrix

External Strategic Factor

Weight

Rating

Weighted Score

Comments

OPPORTUNITIES

       

Short term investments

0.13

4

0.52

The Apple Corporation can do well in the stabilizing the financial position by availing about US $ 20 billion in liquid form and short term investments.

Open retail stores with the assurance of profitability

0.08

4

0.32

There is an opportunity for Apple Company to open retail stores with the assurance of profitability and Apple Company can negotiate more favorably with its customers.

The price level of the company is more appropriate

0.03

4

0.12

The price level of the company is more appropriate and their comes no need for lowering the prices as the customer is thinking it as better investment.

Many stores are opened by the company at international level.

0.14

4

0.56

The affect gained by the company in case of the US troubles is very minimum because many stores are open by the company at international level.

Online presence

0.03

2

0.06

The online factors of the company found an increase in the sales of the computers including the laptops which is 20 to 25 %.

Reliable and loyal

0.04

2

0.08

A huge demand of the Apple Company is experienced by the people who are extremely reliable and are brand conscious.

Expansion in product line

0.14

3

0.42

There is an opportunity for the company to increases and expand its product line.

THREATS

       

An intensive increase in the competition

0.04

4

0.16

An intensive increase in the competition with the music downloads is the threat for the company.

The products and commodities produced by the company are very higher in prices

0.06

4

0.24

The products and commodities produced by the company are very higher in prices than the other brands in the market.

Competitors

0.09

3

0.27

The major threat for the company is its strong positioned competitors including Dell and HP.

Incompatibility with other brands

0.07

4

0.28

Most of the companies are not taking apple as their competitors because of incompatibility.

Substitutes

0.08

3

0.24

Many substitutes are available for the various products produced by the company.

Dependency upon customers

0.02

3

0.06

Company is highly dependent upon the consumers that may be slowdown due to the economic crisis.

The dominating position of the Microsoft operating systems

0.02

3

0.06

The dominating position of the Microsoft operating systems decreases the market shares and sales of the company.

Dell as competitor

0.02

3

0.06

Dell is not actually he inventors but provides its customers a wide range of the products with reasonable and affordable prices.

Recession

0.02

3

0.06

The factor of recession is again an issue because of the higher prices of the Apple computers than the other brands.

Damages not recovered

0.02

3

0.06

The Apple Company will not be in a position to recover the products if in a case they are found damages.

Increased in worms and viruses

0.02

3

0.06

The increase in the worms and viruses on the personal computers is the threat for the company in order to overcome

Total Weighted Score

1.05

 

3.33

 

Conclusion

As per above calculations it has been accomplished that the company’s Total Weighted Score is 3.33 which shows that this company has been very much successful in utilizing its opportunities and minimizing the threats around it.

References

• Bulik, B.S.(2010). Marketer of the year 2010, Marketer of the Decade:Apple. Advertising Age.

• Srivastava, R.K. & Thomas, G.M. Managing brand performance: aligning positioning, execution and experience. Journal of Brand Management, 17(7), 465-471.