STRENGTHS - Strong brand loyalty predicts return customers. It costs far less to keep an existing customer than to lure in a new one. - Simple, easy-to-use design and concise product range attract customers (recall the Paradox of Too Much Choice).
WEAKNESSES - Limited product range, especially absence from low-end desktop and netbook markets, limit potential market saturation and alienate some potential buyers. While many users will buy used Macs, Apple receives no profit from resale of used goods. - General lack of regard for OSX and perceived higher costs make it difficult to achieve wide-spread adoption in the business sector, limiting potential market share. OPPORTUNITIES - Poor public perception of Windows Vista allows Apple to push OSX as an attractive alternative option for users. - Success of Apple iPhone is a viable stepping stone for Apple to attract new users who previously had not owned an Apple computer.
THREATS - Global economic situation is likely to reduce demand for higherpriced consumer items. Since Apple offers no lower-end alternatives, consumers will switch to other manufactures in the face of falling incomes.
- Windows 7 seems well-poised to correct many of the flaws of Vista and offer a "clean slate" for public perception, discrediting one of Apple's major selling points
S Closed ecosystem gives total control of user experience from R&D to retail sale. Competitors have to fight for shelf-space and use whatever Microsoft OS and Intel reference designs come out, which leads to a lot of $499 junk laptops loaded with crapware, on a shelf at OfficeDepot where the main user purchase assistance is "LetmeseeifIhaveoneinthebackstillinthebox". Apple gets to set the specs in detail, and deliver to the customer through a controlled retail experience (Apple Store, Apple On-line Store) that helps them explain the value to the customer and extract a premium for that value. W Higher R&D costs than Dell etc. due to above. Slightly higher...
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