Apple Ge Matrix

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Apple Inc. is a large technology company with several business units operating in different markets, including desktop computers, laptops, tablet computers (iPads), portable music players (iPods), smartphones (iPhones) and software to support these products. A competitor wishing to gain competitive intelligence on the activities of Apple Inc. could do so by placing its business units into a GE/McKinsey Matrix. By analyzing this matrix, it could determine which business units Apple is likely to invest in heavily, develop selectively, or divest. The market attractiveness axis would be relatively easy for the competitor to assess if it is currently operating in that market, since this consists of factors external to Apple. This includes easily obtainable information such as the current market size and market growth rate. However, some factors would have to be assessed subjectively, such as barriers to entry and the state of technological development. In contrast, the business unit strength axis would be more difficult to assess since it consists of factors internal to the company, such as customer loyalty, access to resources, and management strength. However, a great deal of information could be obtained from secondary sources, such as the Internet, the media, and shareholder reports. [pic] From an assessment of the above GE/McKinsey Matrix, it becomes clear that Apple is at least moderately strong in each of its business units and it competes in a number of attractive and fast-growing segments, such as tablet computers and smartphones. A competitor performing this analysis would realize that Apple is unlikely to divest any of these business units and is likely using its personal computer and music products as cash cows in order to fund R&D and growth in the faster-growing markets. The barriers to entry in all of these markets are considerable, since entry

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