Strategic Analysis of Apple Inc

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Strategic analysis of Apple inc * * Table of contents * 1. History of Apple inc 2. Analysis of strategy * 2.1 Applying Porter’s strategy framework to Apple Inc * 2.2 future strategies 3. Recommendations 4. Leadership/culture 5. Appendix 6. References * * * * * * * * * * * * * * * * * * * * 1. History on Apple Inc * Apple Inc. is an American corporation founded in 1976 that was one of the early pioneers of the PC and has recently been at the forefront of next-generation devices. In the past Apple was a pioneer in PC technology before losing out to the Microsoft and IBM driven PC industry. It …show more content…

Acer, for example has acquired Gateway to become a mainstream player in the market (Seattle Times, 2008). The intense competition among the existing players of PC segment has led to price wars and therefore is a constant threat to premium priced manufacturers like Apple. The combination of entry and exit barriers in any industry can also lead to intense rivalry among existing players (Porter, 1980). The consolidation in the industry has shown that there has been low exit barriers for lower performing companies, while proprietary technology and high branding costs erect entry barriers, making the industry ‘best case’, leading to medium rivalry among competitors. Bargaining Power of Suppliers: The bargaining power of suppliers is medium The company is highly dependant of third party suppliers throughout its supply chain management. Drawing upon Apple (2008b), for example in case of personal computers the company source each particular component from single source therefore increasing the bargaining power of the supplier. Due to the differentiation of Mac from other personal computer manufacturers, the company seeks customized designs and technology particular only top Apple, therefore leaving suppliers with high on bargaining power. Bargaining Power of Buyers: The bargaining power of buyers can be seen as medium Apple has been able to erect many barriers for buyers so that they

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