However, because it is easy to shift from Apple to other brands, buyers still exert a strong force. 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. However, these substitutes have low performance because they have limited features.
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. 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.
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.
Many customers would rather use Apple products because of their advanced features. Also, this Five Forces analysis indicates that Apple must focus its efforts on these two external factors to keep its Apple computer case study in the industry.
This condition makes customers weak at the individual level. Also, it is considerable costly to develop a strong brand to compete against large firms like Apple. 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.
In relation, there is a high level of supply for most components of Apple products. 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.
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.
This condition makes individual suppliers weak in imposing their demands on firms like Apple. Thus, the threat of new entry is moderate.
Digital media innovation and the Apple iPad: This Five Forces analysis gives insights about the external factors influencing the firm. Three perspectives on the future of computer tablets and news delivery. Google has already done so through products like Nexus smartphones.
Competitive Rivalry or Competition with Apple Strong Force Apple faces the strong force of competitive rivalry or competition. These examples show that there are large companies that have potential to directly compete against 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.
Such aggressiveness is observable in rapid innovation, aggressive advertising, and imitation. A comparison of communication using the Apple iPad and a picture-based system.
High availability of substitutes moderate force Low performance of substitutes weak force Substitutes to Apple products are readily available in the market. 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, there are large firms with the financial capacity to enter the market and impact Apple. Established inApple has been through low times.
They can also use landline telephones to make calls. For example, people can easily use digital cameras instead of the iPhone to take pictures. 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.
High aggressiveness of firms strong force Low switching cost strong force Companies like BlackBerry, Samsung, LG, and others aggressively compete with Apple.
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.
Samsung also used to be a new entrant. Public Domain Apple has achieved success as one of the most valuable companies in the world.
These factors make new entrants weak. However, under the leadership of Steve Jobs, the company has succeeded to become an industry leader.Apple Inc. Case Study By: Executive Summary: Apple Inc.
is a great computer technology company with a wide range of products that serve to every persons needs.
Not only are their products great but so is their customer service as well. The supplier hub alternative was particularly intriguing because it provided the additional benefit of allowing Apple to decrease the amount of inventory on its books, by negotiating with suppliers to defer payment for incoming materials until the day of use.
Apple Five Forces Analysis (Porter’s model) case study on competition rivalry, bargaining power of buyers & suppliers, threat of substitutes & new entrants. A- Case Summary Apple was by two college drop out students: Steve Wozniak and Steve Jobs with the motto of “Think Differently”. In the early s, Steve Wozniak left the company and Steve Jobs hired John Sculley as the President of the company.
After facing many failures, Apple launched its 5/5(8). iPad Like a computer. Unlike any computer. Now supports Apple Pencil. Running Head: Harvard Business Case Study: Apple Inc. 1 Harvard Business Case Study: Apple Inc. Dennis Stovall Kaplan University GB Strategic Human Resources Management March 25, Harvard Business Case Study: Apple Inc.
2 Abstract This business analysis focuses on the commercial enterprising activities of a world leading.Download