Internal-External Matrix
IFE TOTAL WEIGHTED SCORE
EFE
TOTAL WEIGHTED SCORE
Description:
Grow and Build (I, II,
IV)
Strong
(3.0-4.0)
Average
(2.0-2.99)
Weak
(1.0-1.99)
High
(3.0-4.0)
I
II
III
Harvest and Digest
(VI, VIII, IX)
Medium
(2.0-2.99)
IV
V
VI
RECOMMENDED
STRATEGY:
Low
(1.0-1.99)
Hold and Maintain
(III, V, VII)
Grow and Build
VII
VIII
IX
Competitive Profile Matrix
ADOBE
Critical Success Factor
Market Share
Weight
Rating
MICROSOFT
Score
Rating
Score
APPLE
Rating
Score
0.11
3
0.33
2
0.22
2
0.22
0.1
3
0.3
3
0.3
3
0.3
0.11
4
0.44
3
0.33
3
0.33
Research and Development
0.1
3
0.3
3
0.3
2
0.2
Superior IT Capabilities
0.1
3
0.3
4
0.4
4
0.4
Marketing/Advertising
0.1
2
0.2
3
0.3
3
0.3
0.08
3
0.24
3
0.24
2
0.16
Successful new introductions
0.1
3
0.3
2
0.2
2
0.2
Product Quality
0.1
4
0.4
3
0.3
3
0.3
Price competitiveness
0.06
2
0.12
3
0.18
1
0.06
Customer loyalty
0.04
3
0.12
3
0.12
3
0.12
-
3.05
-
2.89
-
2.59
Strong Online Presence
Brand Reputation
Range of Products
Total
1.00
*Adobe got the highest average of 3.05 among the competitors, this indicate that Adobe is Highly Competitive in the market.
Grand Strategy Matrix
Competitive Forces (strengths)
Profit margin
(Adobe)
(Microsoft)
Gross Margin
Gross Margin
95.07%
51.47%
Operating Margin
Operating Margin
28.48%
18.73%
Pro-Tax Margin
Pro-Tax Margin
26.78%
19.74%
Competitive Forces (strengths/weakness)
Returns
(Adobe)
(Microsoft)
Return on Sale
Return on Sale
22.23%
14.85%
Return on Equity
Return on Equity
16.90%
67.14%
Return on Asset
Return on Asset
10.89%
13.82%
Return on Investment
Return on Investment
12.92%
30%
Return on Capital
Return on Capital
2.42%
0.88%
Competitive Forces (strengths)
Debt
(Adobe)
(Microsoft)
Long-term Debt
Long-term Debt
28.90%
97.39%
Total Debt/Assets (Last Fiscal Year)
Total Debt/Assets (Last Fiscal Year)
18.70%
25.23%
Total Debt/Equity (Last Fiscal Year)
Total Debt/Equity (Last Fiscal Year)
29.15%
94.79%
Adobe’s market share for the year increases by 9.3%
RAPID MARKET
GROWTH
WEAK COMPETITIVE
POSITION
SRONG COMPETITIVE
POSITION
RAPID MARKET
GROWTH
Recommended Strategy:
1. Related Diversification
 Adobe acquiring macromedia and omniture.
2. Unrelated Diversification
 Adobe should diverse in IT industries
3. Joint Ventures
 Continue with partnership of Microsoft.