SWOT Matrix for APPLE

The Quantitative Strategic Planning Matrix (QSPM)

Table 1 QSPM analysis matrix

1 2
Apply strategic Enhance compatibility
responses to legal with other operating
challenges systems
Key Factors Weight AS TAS AS TAS
Strengths
1 Company strong brand reputation 0.15 - 1 0.15
2 High quality products 0.18 - 4 0.72
3 The superior operating system is difficult to be 0.09 - 3 0.27
attacked by viruses
4 Strong financial resources 0.1 3 0.30 4 0.40
5 Outstanding organizational leadership 0.08 4 0.32 4 0.32
6 Culture of creativity and disruptiveness 0.08 2 0.16 3 0.24
Weaknesses
1 Premium prices 0.08 - 2 0.16
2 Incompatibility with other operating systems 0.05 - 4 0.20
3 Products are limited by hardware and software 0.08 - 1 0.08
technology
4 Sales heavily rely on the iPhone which is 0.06 - 1 0.06
seeing increasingly high competition
5 Unfair business practices 0.05 4 0.20 -
Total 1
Opportunities
1 Steady customer growth 0.1 3 0.30 1 0.10
2 Qualified professionals 0.1 4 0.40 4 0.40
3 Expansive distribution network 0.08 2 0.16 -
4 The trend of consuming smart technology 0.1 2 0.20 2 0.20
products is gradually increasing
5 Trendiness in using Apple products 0.1 1 0.10 1 0.10
6 Dominating the smart speaker segment 0.05 2 0.10 -
Threats
1 Antitrust: Apple is under scrutiny 0.1 3 0.30 - -
2 Increasing competition in the industry 0.1 4 0.40 4 0.40
3 A significant change in market penetration 0.08 1 0.08 3 0.24
4 Chinese tariffs 0.07 2 0.14 -
5 Backdoor mechanism 0.05 4 0.20 -
6 Lawsuits 0.07 4 0.28 -
Total 1 3.64 4.04

Note by the Sum Total Attractiveness Scores of 3.64 versus 4.04 that the analysis indicates Apple
Inc. should apply strategic responses to legal challenges and enhance compatibility with other
operating systems.
 SWOT Strategic Quadrilateral

Barycentric coordinate P(x,y)=(∑𝒙 /𝟒,∑ 𝒚 /𝟒)=(0.4925, 0.145)

Because the barycentric coordinate is in SO quadrant, Apple Inc. should prioritize SO strategy.
 Table 2 QSPM analysis matrix (S-O strategy)

Alternative strategies
S-O strategy 1 S-O strategy 2 S-O strategy 3
Leverage the company's Utilize financial Keep up with the
strong brand reputation resources and high-quality
and culture of outstanding leadership products and the
disruptiveness to to expand the superior operating
capitalize on the distribution network and system to attract
increasing trend of dominate the smart more customers
smart technology speaker segment
consumption
Key factors Weight AS TAS AS TAS AS TAS
Opportunity (O)
1 Steady customer growth 0.1 1 0.1 4 0.4 4 0.4
2 Qualified professionals 0.1 3 0.3 3 0.3 3 0.3
3 Expansive distribution network 0.08 2 0.16 4 0.32 4 0.32
4 The trend of consuming smart technology 0.1 4 0.4 4 0.4 4 0.4
products is gradually increasing
5 Trendiness in using Apple products 0.1 4 0.4 4 0.4 4 0.4
6 Dominating the smart speaker segment 0.05 3 0.15 4 0.2 3 0.15
Threats (T)
1 Antitrust: Apple is under scrutiny 0.1 - 2 0.2 3 0.3
2 Increasing competition in the industry 0.1 3 0.3 4 0.4 3 0.3
3 A significant change in market penetration 0.08 1 0.08 4 0.32 2 0.16
4 Chinese tariffs 0.07 - 3 0.21 2 0.14
5 Backdoor mechanism 0.05 - 2 0.1 2 0.1
6 Lawsuits 0.07 2 0.14 3 0.21 1 0.07
Strengths (S)
1 Company strong brand reputation 0.15 4 0.6 4 0.6 4 0.6
2 High quality products 0.18 4 0.72 4 0.72 4 0.72
3 The superior operating system is difficult to be 0.09 4 0.36 4 0.36 4 0.36
attacked by viruses
4 Strong financial resources 0.1 1 0.1 4 0.4 1 0.1
5 Outstanding organizational leadership 0.08 4 0.32 3 0.24 3 0.24
6 Culture of creativity and disruptiveness 0.08 4 0.32 4 0.32 3 0.24

Weakness (W)
1 Premium prices 0.08 1 0.08 1 0.08 2 0.16
2 Incompatibility with other operating systems 0.05 - 1 0.05 1 0.05
3 Products are limited by hardware and software 0.08 - 1 0.08 1 0.08
technology
4 Sales heavily rely on the iPhone which is 0.06 - 2 0.12 1 0.06
seeing increasingly high competition
5 Unfair business practices 0.05 - - -
Total 4.53 6.43 5.65