Many customers would rather use Apple products because of their advanced features. Based on this Five Forces analysis, Apple continues to address competition and the bargaining power of buyers, which are among the most significant external factors impacting the firm.
Competitive Rivalry or Competition with Apple Strong Force Apple faces the strong force of competitive rivalry or competition. On the other hand, switching cost is low, which means that it is easy for customers to switch from Apple to other brands, thereby making competition even tougher.
Thus, this part of the Five Forces analysis shows that Apple does not need to prioritize the bargaining power of suppliers in developing strategies for innovation and industry leadership.
However, there are large firms with the financial capacity to enter the market and impact Apple. In relation, there is a high level of supply for most components of Apple products. A comparison of communication using the Apple iPad and a picture-based system.
For example, people can easily use digital cameras instead of the iPhone to take pictures. 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 Considering these five forces, Apple must focus its attention on competitive rivalry and the bargaining power of buyers.
This Five Forces analysis gives insights about the external factors influencing the firm. This condition makes individual suppliers weak in imposing their demands on firms like Apple. Thus, the threat of new entry is moderate. This part of the Five Forces analysis shows that Apple must maintain its competitive advantage through innovation and marketing to remain strong against new entrants.
However, under the leadership of Steve Jobs, the company has succeeded to become an industry leader. They can also use landline telephones to make calls. Thus, this part of the Five Forces analysis shows that Apple must include the bargaining power of buyers or customers as one of the most significant variables in developing strategies.
These factors make new entrants weak. Samsung also used to be a new entrant. This condition makes customers weak at the individual level. This part of the Five Forces analysis shows that Apple does not need to prioritize the threat of substitution in business processes like marketing and product design and development.
Google has already done so through products like Nexus smartphones. Three perspectives on the future of computer tablets and news delivery. However, because it is easy to shift from Apple to other brands, buyers still exert a strong force.
Low switching cost strong force Small size of individual buyers weak force It is easy for customers to change brands, thereby making them powerful in compelling companies like Apple to ensure customer satisfaction.
However, these substitutes have low performance because they have limited features. Digital media innovation and the Apple iPad: High aggressiveness of firms strong force Low switching cost strong force Companies like BlackBerry, Samsung, LG, and others aggressively compete with Apple.
Also, it is considerable costly to develop a strong brand to compete against large firms like Apple. High number of suppliers weak force High overall supply weak force Even though Apple has less than suppliers of components for its products, the company has more options because there are many suppliers around the world.
High availability of substitutes moderate force Low performance of substitutes weak force Substitutes to Apple products are readily available in the market.
Such aggressiveness is observable in rapid innovation, aggressive advertising, and imitation. The firm effectively addresses the five forces in its external environment, although much of its effort is to strengthen its position against competitors and to keep attracting customers to Apple products.
Established inApple has been through low times. These examples show that there are large companies that have potential to directly compete against Apple. High capital requirements weak force High cost of brand development weak force Capacity of potential new entrants strong force Establishing a business to compete against firms like Apple requires high capitalization.
Also, this Five Forces analysis indicates that Apple must focus its efforts on these two external factors to keep its leadership in the industry. Public Domain Apple has achieved success as one of the most valuable companies in the world.Apple Inc.
(previously Apple Computer, Inc) is a multinational corporation that is established on April 1, in California and incorporated on.
Apple, Inc. needs to continue to inspire and motivate their new employees by giving them a support system to reach their vision and goals that are achievable.
Conclusion The case analysis consisted of a statement of the problem showing a brief analysis of the situation and decision problem. Case Analysis of Apple Inc Executive Summary Apple Inc. is a multinational company located in America, which specializes in the production of technological devices ranging from personal computers, mobile phones, tablets, to media players (O’Grady 1).
MANAGEMENT THEORY INTO MANAGEMENT PRACTICE, APPLE INC. CASE, MODULE: MOD, SID: Management Theory into Management Practice Assignment Module: MOD Year SID Number: Module Leader: Roger Jeynes Apple Inc. Case Word Count: 2, 1 Table of content: 1. Introduction. In our case study, we saw the history of Apple Inc.
unfold from its humble start in to the introduction of the iPod, as well as the iPhone. The analysis did indicate that although Apple developed “personal” computing devices, it was IBM that brought the PC into mainstream market (Yoffie & Slind,p. 6).
Apple Five Forces Analysis (Porter’s model) case study on competition rivalry, bargaining power of buyers & suppliers, threat of substitutes & new entrants.Download