For Apple, Inc: 1. Develop a Internal Factor Evaluation (IFE) Matrix. Use a tota
ID: 345159 • Letter: F
Question
For Apple, Inc:
1. Develop a Internal Factor Evaluation (IFE) Matrix.
Use a total of 8-10 factors factors relating to the following environmental factor perspectives: Factors relating to internal aspects like: - Financial Condition and Cost of Operations - Marketing, Promotion, Branding - Success/Failure of Products or Services - Intellectual Property - Market Share - Employee Skills/Quality/Turnover
2. Discuss the IFE Matrix you created. explaining the internal environmental factors you incorporated, and what the Matrix seeks to discover, including the meaning of the Total Score.
3. Create a Competitive Profile Matrix (CPM) for the same company. Be sure to fully label and discuss the matrix.
Reference: (Please include citations)
https://www.strategicmanagementinsight.com/tools/competitive-profile-matrix-cpm.html
http://www.maxi-pedia.com/IFE+EFE+matrix+internal+factor+evaluation
Explanation / Answer
Respected Student,
1] “IFE MATRIX”
S.No.
Strengths/Weaknesses
Weight
Rating
Weighted Score
Strengths
1.
Innovative thinking to create high quality digital products leading to strong loyalty of customers
0.16
4
0.64
2.
Robust financial performance over the past few years due to continuous cost reduction strategies
0.06
3
0.18
3.
Trendsetting designs and integration of digital media with a strategy of Mac-only internet applications
0.08
4
0.32
4.
Bricks & Mortar offering of Apple products in exclusive retail stores,and 24 hour online sales department
0.05
3
0.15
5.
Offbeat marketing strategies focused on less main stream computer and smartphone users.(leaders in niche market)
0.11
4
0.44
6.
Excellent track record in customer service
0.09
3
0.27
Weaknesses
7.
High price of many products compare to competitors
0.17
1
0.17
8.
Late venture into operating system licensing
0.10
1
0.10
9.
Restriction of software usage by hardware platform
0.06
2
0.12
10.
Low sales volume via website
0.05
2
0.10
11.
Declining ratio of R&D investment over revenues
0.07
2
0.14
1.0
2.63
Internal Factor Evaluation (IFE) matrix is a strategic management tool for auditing or evaluating major strengths and weaknesses in functional areas of a business.
IFE matrix also provides a basis for identifying and evaluating relationships among those areas. The Internal Factor Evaluation matrix or short IFE matrix is used in strategy formulation.
The IFE Matrix together with the EFE matrix is a strategy-formulation tool that can be utilized to evaluate how a company is performing in regards to identified internal strengths and weaknesses of a company. The IFE matrix method conceptually relates to the Balanced Scorecard method in some aspects.
2] Let us discuss each factor step by step.
The first one is Innovative thinking to create high quality digital products leading to strong loyalty of customers which is rightly so as Apple Inc.was the first one to launch smartphones and tablets(i-pads) in the market and continue to do so since then.(2007)
Robust financial performance over the past few years due to continuous cost reduction strategies as it is reflected in the ratio of cost of goods sold divided by sales which remains at 0.61 in the last three years 2015 to 2017.
Other operating expenses are also zero in the last three financial years.
Unusual expenses are also zero in 2015 and 2017 and in 2016 it was positive 548 million that means addition to income.
Trendsetting designs and integration of digital media with a strategy of Mac and i-OS only internet applications which is the USP of Apple since the launching of smartphones and i-pads.(only i-OS platform)
The design of Apple smartphones and i-pads are always very catchy and enticing and yet sobar and simple.
Bricks & Mortar offering of Apple products in exclusive retail stores,and 24 hour online sales department which is very true as they used to sell through dedicated stores in India and there used to be long queue outside their exclusive stores when any new smartphone model is launched in India.
Only 2 to 3 distributors in India(Remington and other/s)and not like other companies Samsung,Gionee etc.
Offbeat marketing strategies focused on less main stream computer and smartphone users.(leaders in niche market) which is very true as pricing is very high and considering India's demography only people in niche segment can offered to purchase otherwise for young ones they have to shell out considerable proportion of their monthly salary to purcahse any new model if that too within the range of disposable income.
Excellent track record in customer service in terms of everything in the store; the setting, the lighting, the color choice and the people – everything is carefully set to give you an unforgettable experience.
Why wouldn’t you want to buy what they offer – even if you’re going to be a few bucks short. The thing is; you would gladly come back again and again.
That’s the power of focusing on the customer.
It doesn’t just end with giving you those amazing experience. Apple wants to know what you think about their service.
Isn’t that nice? A wildly successful, multi-billion dollar corporation, asking for your opinion about the service you’ve just gotten – and it doesn’t feel phony at all.
With this feedback, they’re able to gauge how their customers perceive them and what they could do better.
They have highly trained sales and customer service reps
At the core of this customer-service strategy is an army of well trained and highly motivated staff. Apple invests heavily in training their employees to become competent and knowledgeable in personalized customer service and their products.
So when you walk into their store – you’re dealing with a rep that’s competent and genuinely wants to help resolve any issue you may be having with your gadget or guide you to make the best purchasing decision.
They focused on value creation, not sales
To Apple, their outlets are not just a place to sell – it’s a place to have the complete Apple experience, a place to feel connected to the brand. It’s about enriching and creating value for customers.
Also Apple care protection plan for Macs,i-phone,i-pad,displays,Apple-TV and Apple care premium service plan and support are excellent in providing after sales service and support.
High price of many products over competitors is inhibiting it's market share to increase but it is changing since last few years as young software engineers are purchasing it in installments even if not sufficient disposable income is not there.
Restriction of software usage to hardware system is also a drawback as Android is available to all the mobile manufacturer and hence in majority of smartphones but this is not the case with Apple and hence limited customer base.(niche)
Low sales volume via website as it is not freely there in e-commerce operators like flipkart,snapdeal and various others and todays youth is heavily purchasing from website.
Investment on R&D as a proportion of sales is reducing since last 3 years although it is increasing in absolute terms which is rightly so as new models are not frequently coming.
Regards.
S.No.
Strengths/Weaknesses
Weight
Rating
Weighted Score
Strengths
1.
Innovative thinking to create high quality digital products leading to strong loyalty of customers
0.16
4
0.64
2.
Robust financial performance over the past few years due to continuous cost reduction strategies
0.06
3
0.18
3.
Trendsetting designs and integration of digital media with a strategy of Mac-only internet applications
0.08
4
0.32
4.
Bricks & Mortar offering of Apple products in exclusive retail stores,and 24 hour online sales department
0.05
3
0.15
5.
Offbeat marketing strategies focused on less main stream computer and smartphone users.(leaders in niche market)
0.11
4
0.44
6.
Excellent track record in customer service
0.09
3
0.27
Weaknesses
7.
High price of many products compare to competitors
0.17
1
0.17
8.
Late venture into operating system licensing
0.10
1
0.10
9.
Restriction of software usage by hardware platform
0.06
2
0.12
10.
Low sales volume via website
0.05
2
0.10
11.
Declining ratio of R&D investment over revenues
0.07
2
0.14
1.0
2.63
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