Overview And Highlights. Apple Is Often Described As One

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Overview and Highlights

Apple is often described as one the world 's leading consumer electronics and

personal computer companies and as of late, one of the most valuable companies in

the world. Apple can be described in one sentence, as a company that delivers

consistent growth through selling a brand. At its core, Apple’s business is

comprised of designing, manufacturing and selling attractive and user friendly

devices, in addition to a variety of applications, software and services to

complement those products.

Product Mix

iPhone, iPad, Mac, iPod, Apple Watch , Apple TV and software are Apple’s main

products, with iPhone leading the pack as the star. Apple has implemented a rather

unique product distribution strategy and
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To accommodate a sustained competitive advantage, the banding

components needs to be cultivated further in order to expand Apple’s target market

and to stay ahead of competition.

Applying Porter’s 5 forces analysis to Apple

1. Industry rivalry (strong force)

This is a crucial area for Apple to consider, as it faces a strong force of

rivalry in the industry. Rival companies such as Samsung, google and

Microsoft are extremely competitive and this level of rivalry is apparent in

their imitation of Apple products, their need to beat Apple in new releases

and in their advertising campaigns.

2. Bargaining power of buyers (strong force)

The ease and the low cost of switching to other brands carries significant

weight and one that Apple needs consider in their strategic planning.

Stephanie Talebli

FSA Assignment

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3. Bargaining power of suppliers (weak force)

Apple has unlimited options available in this area, as there are numerous

suppliers worldwide who would love to work with Apple. This is not a

major area of concern for Apple at this time.

4. Threat of new entrants (moderate force)

It is extremely capital intensive to enter this market as a newcomer with the

intention to compete against Apple. However, considering Samsung was a

new comer that positioned itself in direct competition with Apple, the treat

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