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Strategic Management Apple Efas

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An External Factors Analysis Summary (EFAS) table also in some instances referred to as the External Factor Evaluation (EFE) matrix is a tool used in the assessment of external conditions of the business in strategic management (Wheelen, Hunger, Hoffman, & Bamford, 2015). To put this into perspective; the following is an EFAS table for Apple Inc.: Apple Inc. EFAS Table | External Factors | Weight | Rating | Weighted Score | Remarks | OPPORTUNITIES | | | | | High demand of iPad mini, iPhone 6 and 6 plus and Apple watch | 0.1 | 5 | 0.5 | The uptake of these new products has been good and is proving to be an additional source of revenue for Apple. | Growth of tablet and Smartphone markets | 0.09 | 5 | 0.45 | The company is well positioned and a market leader in the adoption of these new technologies. | iTV launch | 0.08 | 3 | 0.24 | This new service is picking up gradually but is not a main focus item for Apple’s management now. | Emergence of the new provider of application processors | 0.11 | 4 | 0.44 | This will impact the pricing of products as it means Apple can get optional suppliers for the processors currently supplied by Samsung. | Obtaining patents through acquisitions | 0.06 | 1 | 0.06 | Apple is a research and development focused company and thus does not rely so much on acquisitions to acquire patents. | Strong growth prospects of mobile advertising market and iAD launch | 0.06 | 3 | 0.18 | This is a new service that poses great growth potential thus there is moderate focus on it as it presents an opportunity to realize growth in revenues. | THREATS | | | | | Price increases for key components | 0.11 | 4 | 0.44 | This factor is important because currently the components are supplied by Samsung, a direct competitor who have the sole prerogative in the pricing of the apps processors. |

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