Unformatted text preview: completely different. For example, wireless technologies could replace the need for a physical music player. In order to counter this, Apple uses highly innovative strategies and products. The competition in this industry is very high and the companies differentiate themselves either on the basis of innovation, like Apple or low costs, like Dell and Lenovo. In fact, the biggest threat to these companies is the very high level of competition in the technology markets. Being successful in this industry attracts high level of competition, and Apple works very hard on R&D and marketing in order to retain its differentiated competitive position. The bargaining power of the customers is low since they are not concentrated and the switching costs are very high which discourages the customers from buying similar products from a different supplier. Reference: Apple Web Site Reuters Report BMI Report for industries...
View Full Document
- Spring '11
- high level, Barriers to entry, bargaining power, fast growing industry