Case Study: Apple, Inc Essay example

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Case Study: Apple, Inc

Assignment Questions 1. Does it make good strategic sense for Apple to be a competitor in the computer, digital music player, and mobile phone industries? Are the value chain activities that Apple performs in computers, digital music players, and mobile phones very similar and “compatible” or are there very important differences from product to product? Which of the three products lines —computers, digital music players, or mobile phones—do you think is most important to Apple’s future growth and profitability? Why? a. For Apple, yes it does make sense to be a competitor in all 3 industries. They have developed themselves as a strong name in the market and have a stand out product against the
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You have PC’s and you have Apple. They are hard to compare. So there isn’t much of bargaining power for buyers. iii. Threat of new entrants-There has been the same companies in the market for several years now. With electronics, people tend to stick with one brand if they have a good experience with it. This makes it hard for others to enter the market. iv. Threat of substitutes-The threat of substitutes for the Apple computer is very slim. As stated above, there is the PC then there is the Apple. Apple is a completely different formatted computer and it depends on the needs of the user. There are many different brands of PC’s but only one Apple. v. Rivalries among competitors-Apple computers are very expensive in part because there isn’t that rivalry with competitors to compete prices. Apple computers don’t really have a direct competition. e. 5 force analysis: Digital Music Players vi. Bargaining power of suppliers-With MP3 manufacturing there is probably a few more suppliers then with computers but still not very many so a small window of bargaining power with the supplier. It is probably costly to switch between suppliers. vii. Bargaining power of buyers-The bargaining power of buyers is a little more for MP3 players for Apple then it is computers because the MP3 players aren’t as unique as the computers are. There are other companies in the market that have

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