Such a strategy would also help the firm to address its weaknesses while acting on its strengths. Some of Apple's strengths include an innovative cast of executives and a well-known brand. Its weaknesses include significantly high R&D costs in comparison to those of competitors. Competition from makers of similar products is one of the main threats the company faces. In regard to opportunities, Apple could seek to take advantage of emerging markets to push up its sales figure. Ratio Analysis

To further evaluate how successful Apple is, such ratios as the gross profit margin, inventory turnover, current ratio and return on equity can be taken into consideration.

Gross Profit Margin

Apple's gross profit margin can be computed by deducting C.O.G.S from the figure given for sales. The resulting figure in this case is then divided with the sales figure. Consider below.

2008 gross profit margin = 37.49B - 23.49B/37.49B = 0.37

2009 gross profit margin = 42.90B - 24.95B/42.90B = 0.42

2010 gross profit margin = 65.07B - 38.47B/65.07B = 0.41

Basically this ratio concerns itself with the gross profit sales are earning. Looking at the figures above, though the gross profit earned on sales increased in 2009 compared to 2008, it recorded a slight decline in 2010. The firm could hence be experiencing slight problems when it comes to the management of its production costs.

Inventory Turnover

Apple's inventory turnover will be computed by dividing the figure for the cost of goods sold with the figure for average inventory. Consider below.

2008 inventory turnover = 23.80B/0.509B = 46.76

2009 inventory turnover = 24.95B/0.455B = 54.84

2010 inventory turnover = 38.47B/1.05B = 36.64

This ratio helps a business to determine whether it has excessive stock. Given that the figure for inventory turnover decreased in the year 2010 in comparison to 2009, one could conclude that Apple managed its stock well in the period under consideration.

Current Ratio

Apple's current ratio can be computed by dividing the value of current liabilities with the current assets value. Consider below.

2008 current ratio...

Basically, a current ratio of less than 1 is sign that the business may not be able to settle its short-term obligations if and when they fall due.
Return on Equity

Return on equity (ROE) can be computed by dividing the figure for income (net) with that of shareholders equity. Consider below.

2008 return on equity = 6.12B/22.30B = 0.27

2009 return on equity = 8.24B/31.64B = 0.26

2010 return on equity = 14.01B/47.79B = 0.29

This ratio measures how much investors are getting back from the company for each of their invested dollar. The higher ROE in 2010 in comparison to 2009 is an indicator that in the period under consideration, Apple efficiently used its assets to rake in healthy earnings.

Conclusion

In conclusion, it can be noted that over time, Apple has largely been successful in the highly competitive personal computers marketplace as a result of its resolve to ensure that its products are significantly different from those of competitors. Further, the company has been a market leader when it comes to innovation. However, it should be noted that to remain relevant in the market going forward, Apple must continue offering value to its customers whilst ensuring that its products continue to stand out from those offered for sale by competitors.

Works Cited

Apple. "10K: Annual Report-Oct 2010." Apple Stock. P. 6. Oct 2010. Web. 9th Oct 2011.

Dalrymple, J. "Interview: HP says Apple is not Touchpad's Target. The Loop. 30th June 2011. Web. 9th Oct 2011. http://www.loopinsight.com/2011/06/30/interview-hp-says-apple-is-not-touchpads-target/

Ferrell, O.C. And Michael Hartline. Marketing Strategy. Cengage Learning, 2010. Print.

Harrison, Jeffrey. S. & Caron, H. St. John. Foundations in Strategic Management. Cengage Learning, 2009. Print.

Milian, Mark. "Apple's Steve Jobs Takes Shots at Competitors." CNN. N.p., 19th Oct 2010. Web. 9th Oct 2011.