Industry Analysis: Apple Computers Essay

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An American sex educator, birth control activist, author, and nurse, that’s who Margaret Sanger was. Sanger “created” the expression "birth control", established the first birth control clinic in the United States, and set up associations that later developed into the Planned Parenthood Federation of America. A fervent women's activist, human rights lobbyist, and supporter of sex-positivity, Sanger was additionally a eugenicist, trusting that anti-conception medication was at any rate as imperative an apparatus for restricting the generation of 'the unfit' as it was for women's freedom. Sanger concurred with numerous driving researchers and progressives of her day in attributing to purported Social Darwinism, a problematic term since it doesn't

In order to truly understand how Apple operates and what products they offer to consumers in the personal electronics in comparison to other companies in the market. There are many players in the personal electronics industry and Apple is 3rd place for market share capturing 11.1% of the US PC market share. HP is the leading player in the US market accounting for 26.1% share of the market, Dell accounts for 22.3%, Toshiba falls behind Apple with 9.3% of the market share.

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.

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Porter's Five Forces can be applied to particular companies, market segments and industries with the step-by-step analysis of market structure and competitive situation. First of all, when implementing this module in organizations, it is necessary to determine the scope of the market to be analyzed. Following, all relevant forces for this market analyzed and key forces are identified (Gerry and Kevan, P.117). Actually some organizational strategy and the longer-term goals are mainly based on or consistent with the key forces. Hence, it is not necessary to analyze all elements of all competitive forces with the same depth. Moreover, the key forces in the competitive environment will vary in different industry. Different forces take on prominence in shaping competition in each industry (Porter,

And these analyses will be done with the help of Porter’s 5 forces (see appendix 1, 2, 3). This analysing toll deals with issues which are from outside the industry that impacts the nature of competition within the certain industry. Thurlby, (1998) stated “Understanding the nature of each of these forces gives organisations the necessary insights to enable them to formulate the appropriate strategies to be successful in their market”1. The analysis of the three industry are given belowPC industry (See appendix 1) This competition within the PC industry is extraordinarily high consisting with top companies like Dell, HP, Apple, Gateway and Sony. In order to gain competitive advantage, the key factors are advancement in technology, custom built PCs, reliability and standard customer service. The life cycle of PC industry can be seen as mature (See appendix 6); however the growth of PC’s has not decline. The reason is due to the globalisation trends taking place within the major firms. The barriers very high where there are already five main firms that dominate the market. Therefore, the chances of new PC companies entering the market and get significant hold of market share is very slender. The main two factors that are making the entry level high are mainly cost and distribution and the top five firms also control 70 per cent of the global personal computer market. Another factor may be is that

Apple Incorporated, formerly known as Apple Computers Incorporated, and more commonly known just as Apple, has lead the way in technology and innovation for consumer electronics with their slender storage capacities, vibrant displays, and incredible touch screen products. When they first started, their focus was more on personal computers for customers, but as the company has aged, so has their focus expanded towards this idea of consumer electronics as a whole. Seeing as they now offer popular devices including, but not limited to, computers (Mac Book), home theater (Apple TV), phones (iPhone), tablets (iPad), and media (iPod), it can clearly be

Therefore, the existence of substitutes have the potential to reduce the future growth of the brand. -Rivalry within the PC industry Apple is facing very tough rivalry. Competing brands involve in price wars. Customers have different needs and wants. No specific market segment is strong enough to justify price premium. Buyers have increasing knowledge about the product. Overview of the industry The PC industry has powerful buyers, vicious rivalry, intense threat from the new entrants, some strong suppliers who harvest most of the industry’s residual profits. Overall, the PC industry is not an attractive business. Analyze the internal environment of the firm For companies to build competitive advantage, they need to examine the entire value system. What really delivers value in Apple? The following analysis will adopt the Resource-Based View. Specifically, Apple Inc. is an effective manufacture and designer of consumer electronics and closely related software product. The tangible resources of Apple may include its flagship products, the current customer base, the company’s current distribution systems, etc. For example, Apple leads the industry in innovation with its award-winning desktop and notebook computers, OS X operating system, iLife and its range of professional applications. Apple also spearheads the digital music revolution with its iPod portable music players and iTunes online music store. The intangible resources of Apple may be the

The company started off as “Apple Computer,” best known for its Macintosh personal computers (PCs) in the 1980’s and 1990’s. Despite a strong brand, rapid growth, and high profits in the late 1980s, Apple almost went bankrupt in 1996 (Kim & Yoffie, 2010, p.1). This can be explained that Apple has become larger and more significant than other competitors put together in 1980. Because Apple failed to innovate in 1996, the company almost went bankruptcy but eventually Steve Jobs took Apple from bad situation to the company that can make billions of dollars through promoted itself as a hip alternative to other computer brands. Apple highlighted its computers as the world’s “greenest lineup of notebooks” that were energy efficient and used recyclable materials. The goal was to differentiate the Macintosh amid intense competition in the PC industry (Kim & Yoffie, p.4).

The large capital requirements to enter the computer industry combined with established brand identities of the current incumbents make barriers to entry high, not to mention the economies of scale and distribution channels that incumbents enjoy which make entry barriers even higher. The current PC incumbents enjoy demand-side benefit of scale in the business sector where PC buyers prefer to buy products from large trusted companies, raising the level of entry barriers.

Apple Inc. has launched its iPhone in January 2007 (telegraph) as a new product in the market with latest technology and it was the first multi touch smartphone adding the feature of iPod and received an overwhelmed response by selling 270000 units. It had created a new record for a new company like apple, iPhone had laid a stepping stone for the success of Apple and till this time iPhone is the best seller product of Apple Inc. during first quarter of 2016 apple has sold over 74 million iPhones worldwide. (statista, 2016).

There are many competitors in the PC industry, which results in intense competition in the industry. The top PC competitors are Lenovo, Hewlett-Packard (HP), Dell, and Apple. Apple controls a large share of the PC market. Since Steve Jobs as CEO, Apple has gain significant market share with their innovative and high quality products. HP is a top competitor to Apple, but does not offer significant differentiation in products. Dell and Lenovo are strong competitor and offer low cost PC products. HP, Dell and Lenovo compete in the low cost PC market, which make the low cost PC market competition very stiff. Apple choses not to compete in the low cost market and instead competes in the high PC market. Apple does very well in the high end PC market as they restructure their business to be innovative and high quality.

The multi billion-dollar corporation, Apple Inc., designs and manufactures some of today’s highest technological gizmos and gadgets. Among their best known products are the Apple and Macintosh computers, iPods, iTunes, iPhones and iPads. Apple is one of the most powerful and influential high tech companies in the world. The success of Apple Inc. stems from the innovation and visions of co-founder and entrepreneur, Steve Jobs, the excellence of the stylish, user-friendly products, and the ability to create innovative products that consumer’s desire.

Microsoft and Apple are the two biggest companies in computer manufacture. The two companies have many similarities and differences. Firstly, both use the basic of the computer, the keyboard, the mouse, and the design of the screen. It is vital for a buyer to considerate that a Microsoft P.C. is designed for affordability, efficiency, and compatibility. Macs, however, are designed for the technological lovers, known by terms such as “geeks”. Microsoft and Apple have competed for years, earning billions. It has been Microsoft who sells more computers, but just in recent years Apple has become very popular with new Mac computers. The consumers take into consideration many aspects before buying a computer like virus protection, game use, business use, and programs. Apple is gaining popularity despite its high prices, yet Microsoft still sells the most computers