Apple Inc. is a technology company widely known for the designing, production and selling merchandise to do with mobile phones, music and computers. Apple has become some sort of a cult-brand over the past few years with its lifeline being retained and marinated by iTunes, Imac line, and QuickTime. Apple has increasingly concentrated on increasing the market share of their iPhone which has a range of smartphones of varying specifications. In the long term pursuit, Apple wants to be the highest seller of their merchandise at the global platform, and it is this long-term goal that informs this analysis to see the challenges and opportunities that Apple faces in this pursuit.
The porter’s five forces model of analysis of markets often takes into account five major areas, just as the name suggests. These five forces are as follows, with the ratings alongside in the concept of Apple smartphones; Competitive rivalry or competition (strong force), Bargaining power of buyers or customers (strong force), Bargaining power of suppliers (weak force), Threat of substitutes or substitution (weak force), Threat of new entrants or new entry (moderate force).
Competitive rivalry or competition
Most IT companies face high competition within the technology oriented market especially in the contemporary highly dynamic world of technology. Due to its successful trend, iPhone has attracted immense competition from other brands like Samsung, LG, Blackberry and Lenovo in the smartphone market. There are two major external factors that iPhone has to contend with, the high aggressiveness of firms and the low switching cost. The aforementioned competing brands engage in aggressive advertising, rapid innovation as well as imitation...
References
Husso M., (2011). Analysis of Competition in the Mobile Phone Markets of the United States and Europe. Retrieved April 22, 2018 from https://pdfs.semanticscholar.org/fbb4/3361b439ed88cbbe595259698d7543c63587.pdf
Johnson F.L., (2018). The 5 Competitive Forces Framework in a Technology
mediated environment. Do these Forces still hold in the Industry of the 21st Century? Retrieved April 22, 2018 from http://essay.utwente.nl/66196/1/Johnson_BA_MB.pdf
Team FME, (2013). Porter’s Five Forces: Strategy Skills. Retrieved April 22, 2018 from http://www.free-management-ebooks.com/dldebk-pdf/fme-five-forces-framework.pdf
Wendel Clark. (1999),”SWOT Analysis for the Apple Company’’ Demand Media Inc (eHow). Retrieved April 22, 2018 from http://www.ehow.com/facts_6801257_swot-analysis-apple-company.html.
The Bargaining Power of Buyers is also an area that Apple has significant control over, as it has built up one of the most loyal and cost-insensitive customer bases there are in technology. Customers willingly pay over $500 for new iPads and will wait in line for days to buy them (Apple Investor Relations, 2012). The next factor of New Market Entrants is an area of much activity globally today, as
Financial Research Report A: Introduction There are several factors that one ought to take into consideration before investing in a firm. These factors include, but are not limited to, the enterprise's performance, the caliber of the management in place, the financial condition of the Company, and future prospects of the business. However, it is essential to note that one key factor that could be overlooked, despite its relevance, is the profile of
Apple Inc. And Samsung Group) Background information about Apple Inc. And Samsung Apple is the global trendsetter in the electronic industry with its tablets, smart phones and computers. The computer manufacture were their core strength for a long time, but it gained momentum in other tech segments later as well. With the introduction of Macintosh contributed significantly to the sustenance of the company. Its solid financial performance is a testimony to
The fact that iTunes is compatible across the entire spectrum of iPod/iTouch, and iPhone models has transformed Apple's business model by creating significant switching costs, further ensuring their market leadership. This has also created a defensible market position with suppliers and partners of all forms of digital content, from music and movies. Third, Apple's unique design strategies in smart phones have also been an effective deterrent against competitive entry into
Strategic Planning: Apple Inc. and Industry Apple Inc. is global technological corporation based in California, America. The company's business operations encompass the designing, developing and retailing of computer software, electronics and also provision of online services. In particular, Apple Inc. is set within the technology industry, competing on different fronts such as the mobile sector and computer sector as well. Technology transformation and change has completely altered the mobile industry and the
This represents a shift in corporate strategy. The company for most of its existence operated as a niche player, essentially utilizing a differentiated focus strategy. The current strategy, however, has been to downplay the exclusivity it long sought to cultivate and focus on a broad differentiation strategy instead (Burrows et al., 2007). Apple has continued in recent years with this strategy. The company has continued to release different iPhone version
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