Apple Inc. has adjusted its strategy to the variable market, attempting another fighting in the consumer’s electronic market, and seeking the products diversification. new entrant to the marketplace of personal computing or smartphones needs to have a massive amount of capital to spend on R&D and manufacturing to develop and produce its own product before starting to make revenues (Maverick, no date). The bargaining power of suppliers is low : Nowadays, there are many satisfactory substitute firms to choose in the manufacturing and assembling sections, and big firms can buy smaller firms. The bargaining power of suppliers is debilitated by the high sum of potential suppliers for Apple Inc. and the sufficient amount of supply (Maverick, no date). Apple is able to pick from a large number of potential suppliers for element parts for its products. The switching cost for Apple to interchange one supplier for extra is moderately low and not a noteworthy impediment.
128115 Page 12 The bargaining power of buyers is high : The main target consumers of apple are the academic institute, colleges and schools in the education field, and retail buyers. Apple’s predominant position in the education market has been lost to Dell (Jinjin, 2013). The buying of governments, corporations, academic institutions, education organizations are large rel ative to Apple’s sales, as a result the bargaining power is very high. Apple has stood successful in the area of competition, by creating a bulky customer base that, essentially, would not contemplate abandoning its iPhones in indulgence of alternative smartphone competitor. The threat of substitute products is medium : Substitute of products, within the framework of Porter's Five Forces Model, are not products that contest directly with a firm's products but conceivable substitutes for them (Maverick, no date). As to the general computers fields, including both desktop and portable computer, the threat of substitute is relatively weak. Not only the Tablet PC, Pen Computer, and XPC, but most potential substitute products have limited capabilities compared to Apple's products. The intensity of rivalry among competing firms is very high : There are numerous selections for the consumers in the industry; they can either select others products as the substitution of Apple. The switch cost is very low as a result this means that it is easy for customers to switch from Apple to other brands, thereby creating a tougher competition (Jinjin, 2013). Businesses like BlackBerry, Samsung, LG, including others violently contest with Apple. This kind of fierceness is visible in hasty innovation, aggressive advertising, and imitation.
128115 Page 13 Apple Inc. Key success factors The thought that there are factors that decide the success of the firm, and as these factors can be resolute, was initially presented by Daniel (1961) and well along expounded by Rockart (1979; Bullen & Rockart, 1981) as the tool of crafting management information systems.
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- Fall '15
- Management, Apple Computer Inc.