Get Full Essay Get access to this section to get all help you need with your essay and educational issues. Essay Sample What better time to explore the past, present, and future of Apple, Inc. Apple began in in Cupertino, California, when three men, Steve Jobs, Steve Wozniak, and Ronald Wayne, decided to start a company that specialized in personal computers. The company began as Apple Computer, Inc.
BusinessFive Forces Apple Inc. Porter developed this model in and since then it has come to be widely used to analyse the profitability and attractiveness of industries. The focus of the model is on five important forces that are a part of every industry and market. These competitive forces can be affected or exploited to increase profitability.
Mangers can form strategies based on the strength of these forces to improve the profitability of their businesses. It is also one of the most valuable brands in the world. Apple has been through several ups and downs since its foundation. In the past several years it has released products that are known exclusively for excellent design and quality.
The fundamental focus of Apple is innovation which has driven its growth and success. The five forces that can affect the competition and profitability of Apple are: Bargaining power of suppliers: Apple has managed a complex chain of suppliers that are spread globally over several nations including US, China, Taiwan, Japan, Brazil, Mexico and several other small and big nations.
Apart from that Apple products are not developed entirely by any single supplier. While one part may be supplied by a supplier in Taiwan, another by a Brazilian or the Japanese supplier and the final assembly may be completed in China. In this way, Apple also maintains excellent control over its suppliers.
While the switching costs may be very low for Apple, in case of the suppliers, they would not like losing their business with it. There is no threat of forward integration by the suppliers either. Bargaining Power of Customers: While the bargaining power of individual customers in the case of Apple or its competitors is low, it is not so in the case of customer groups or markets.
For example in the last few years Apple has lost a huge market share in the Asian markets in PC industry to competitors like Lenovo. So, when considering the collective bargaining power of the customers in individual markets, it is high.
Still, over time while in the world market, the clout of customers has increased, that of Apple has reduced. One important factor that has worked in the favor of Apple is brand loyalty which has led to high Iphone sales. So, the bargaining power of buyers can be considered as weak to moderate.
Threat of New Entrants: If the threat of new entrants has remained relatively weak for Apple, then it is primarily due to two factors. Still, the threat comes from the existing players.
For example, Google has introduced its smartphones that can be good options for the customers who cannot afford Apple products.
While Apple products are unique and innovative, they are premium priced. This is where Google and Lenovo have been able to take away market share from Apple. So, while the threat of new entrants in Laptops and smartphone market is low, existing tech giants can diversify into these areas.
Even Amazon offers competing products like Kindle and had introduced its Fire smartphone which could not be a big success. So, the threat of new entrants is weak to moderate.
Apple does not have much control over the raw material or distribution channels. Moreover, it has maintained its own ecosystem of products that is not linked to products or services from other brands.Essay on Porters 5 Force Analysis of Apple Inc More about Porters Five Forces And Apple Inc.
Management Principles Assignment (Porter's Five Forces on Apple Inc.) Words | 30 Pages; Porter Five Forces Model Words | 9 Pages; Essay on Porters 5 Force Analysis of Apple Inc. Porters 5 forces analysis. Print Reference this. Disclaimer: This work has been submitted by a student.
This is not an example of the work written by our professional academic writers. If you are the original writer of this essay and no longer wish to have the essay published on the UK Essays website then please click on the link below to. Porters’s model identifies five major forces that can endanger or enhance a company’s position in a given industry.
The five forces in the model include: 1) Threat of entry of new competitors: Apple essentially dominates the consumer electronics industry. Strategic Management Essays, Term Papers & Presentations. Porter Five Forces Analysis is a strategic management tool to analyze industry and understand underlying levers of profitability in a given industry.
Apple Inc. managers can use Porter Five Forces to understand how the five competitive forces influence profitability and develop a strategy for enhancing Apple Inc.
competitive advantage. Home Essays Apple Porters Five Forces. Apple Porters Five Forces. Topics: Apple Inc. Porters Five Forces – Competitor Analysis Michael Porter’s five forces model is used to explore the competitive environment in which a product or company operates.
In this case it will explore the competitive environment of Dell and the Tab Streak.
Essay on Porter 5 Forces Analysis of Blackberry Words | 5 Pages. BlackBerry struggled to get native applications for the launch of the Z - The Bargaining Power of Suppliers for Blackberry has increased, due to Blackberry’s eroding market share.