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Apple Analysis Executive Summary Essay

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Apple Analysis Executive Summary In week 8 of AMBA 640, we will be analyzing the Apple case located in chapter one of Management Information Systems: Business Driven MIS Inc from an information systems management perspective. Our analysis will look at some of the common tools used to analyze competitive intelligence such as Porter’s Five Forces Model, the three generic strategies for choosing a business focus and the value chain analysis. We will also discuss why and how data, information, business intelligence and knowledge are important to Apple. This analysis will also include how Apple identified areas where it achieved a competitive advantage using management information systems and why competitive advantages are temporary.…show more content…
Threats of Substitute Products or Services Substitute products or services are a result of competition and can limit the profitability in that industry. Threat level is considered high when there are multiple alternatives for the product or service. The threat level for Apple is high due to the numerous options that consumers have to choose from. Amazon and Android both offer buyers the ability to download digital content, i.e. books, music, movies, and etcetera through its online store. Samsung, Sony, Motorola and Microsoft sell various products (tablets, mp3 players, cellular phones) that directly compete for the same consumers as Apple. Threat of New Entrants The threat of new entrants into an industry is largely dependent on the barriers to entry. Baltzan defines an entry barrier as “a feature of a product or service that customers have come to expect and entering competitors must offer the same for survival (Baltzan, 2012, p.17)”. Porter identified six barriers (http://www.referenceforbusiness.com/management/Or-Pr/Porter-s-5-Forces-Model.html): •Economies of scale, or decline in unit costs of the product, which force the entrant to enter on a large scale and risk a strong reaction from firms already in the industry, or accepting a disadvantage of costs if entering on a small scale. • Product differentiation, or brand identification and customer loyalty. •
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