According to Jobs' biographer Walter IsaacsonJobs began a concerted campaign to help sales by improving the retail presentation of Macintosh computers. Even with new products launched under Jobs' watch, like the iMac and the PowerBook G3 and an online store, Apple still relied heavily on big box computer and electronics stores for most of their sales. There, customers continued to deal with poorly trained and ill-maintained Mac sections that did not foster customer loyalty to Apple and did not help differentiate the Mac user-experience from Windows.
Maverick Updated January 31, — 9: The Five Forces model aims to examine five key forces of competition within a given industry. AAPL has achieved massive success as a company despite going through a number of up and down cycles since its founding in InApple achieved the notable distinction of being the first U.
The bargaining power of suppliers, the threat of buyers opting for substitute products, and the threat of new entrants to the marketplace are all weaker elements among the key industry forces.
Industry Competition The level of competition among the major companies that compete directly with Apple in the technology sector is high. Apple is in direct competition with companies such as Google, Inc. Thus, the competitive force within the industry is strong. One thing that makes the industry so highly competitive is the relatively low switching cost.
The threat of marketplace competition is a key consideration for Apple, which it has dealt with primarily through continually developing new and unique products to increase and strengthen its market share position.
Bargaining Power of Buyers The element of low switching cost referred to above strengthens the bargaining power of buyers as a key force for Apple to consider. There are essentially two points of further analysis within this force: For Apple, individual bargaining power is a weak force, since the loss of any one customer represents a negligible amount of revenue for Apple.
However, the collective marketplace bargaining power of customers, the possibility of mass customer defections to a competitor is a strong force.
Apple has been very successful in this area of competition, establishing a large customer base that, basically, would not consider abandoning its iPhones in favor of another smartphone competitor.
This is primarily due to two factors: Such an entrant faces the already identified strong competition within the industry that exists between Apple and its major competitors, all of which are large, well-established firms.
The secondary challenge is establishing brand name recognition within an industry that already has several companies, such as Apple, Google, and Amazon, with very strong brand recognition.
Nonetheless, it is important for Apple to continue strengthening its competitive position through new product development and building brand loyalty to place any potential new entrants to the industry at a larger competitive disadvantage.
The bargaining position of suppliers is weakened by the high number of potential suppliers for Apple and the ample amount of supply. Apple is free to choose from among a large number of potential suppliers for component parts for its products.
The industries of its parts suppliers, such as the manufacturers of computer processors, are themselves highly competitive. The switching cost for Apple to exchange one supplier for another is relatively low and not a significant obstacle.
Plus, Apple is a major customer for most of its parts suppliers, and, therefore, one its suppliers are very reluctant to risk losing. The bargaining power of component parts suppliers is not a major consideration for either Apple or its major competitors.
In the case of Apple, an example of a substitute product is a landline telephone that might be a substitute for owning an iPhone. Trading Center Want to learn how to invest? Get a free 10 week email series that will teach you how to start investing.
Delivered twice a week, straight to your inbox.Publication Date: March 07, This case reveals the genesis of the Apple Stores, a revolutionary retail concept launched by Ron Johnson, Apple Computer's senior vice president of retail.
Apple computer Abstract This case basically introduces the history of the Apple Company, and shows the company’s ups and downs in the computer industry. Apple Computer is the key factor to upgrade computer industry innovation.
A case in point is Apple Computer’s flagship product called the iPod, which occupies a dominant 73% share the portable music player market (Cantrell ). Analysts believe it is the impetus for Apple’s financial rebirth 40% of Apple’s sales is attributed to the iPod product line (Cantrell ).
Jan 22, · Apple has become one of the best-known, most admired and most imitated companies on earth, in part through an unrelenting mastery of global operations. SARS: A Case Study in Emerging Infections [Angela R. McLean, Robert M.
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Living in affluent societies with well developed health care. Apple Computer case study solution, Apple Computer case study analysis, Subjects Covered Competitive advantage Industry analysis Strategy formulation Technology by David B.
Yoffie, Yusi Wang Source: HBS Premier Case Collection.