Apple Inc. is a leader in the global technology world. Apple was able to sustain its growth in 2012 despite leading its leader Steve Jobs and the sluggish economic conditions. Tim Cook took over the leadership position and were facing many different technological challenges in the industry. The company is focused on growing their computer, smartphone, portable music, tablets and other products to the customers. The company is concerned with how Google’s entry into the market will challenge their smartphone sales and position. Google intends to use the credibility of their name to enter the market and challenge Apple’s market dominance. Apple Inc. needs to consider how competitive they can remain in a market where Google is challenging their dominance. Apple Inc. has worked hard towards building a brand reputation that is like no other, and by offering the latest technology to the market they can remain competitive regardless of who enters the market.
Porters 5 Forces Analysis
Apple’s competitive rivalry is medium. Apple has avoided price competition that has kept them out of the low-end market. Apple also never puts their product on sale establishing a superiority to the brand. The company has implemented strategies to influence buyers to purchase the Apple Product. The company has limited their competitive rivalry by establishing hardware advances and software innovation. Companies like Samsung, Nokia, and HTC have established names that are serious competitions that Apple needs to consider. The supplier power for Apple is also medium. Apple designs its chip, reducing the need for suppliers. Apple also reduces the risk of manufacturing power by buying equipment that can only be used for Apple. It also reduces the power of distribution by establishing Apple stores in key markets, allowing for improved product services. Apple needs to diversify the suppliers they use for key components in their products to ensure that there is no point where there is a shortage in a product. Apple Inc. is very specific with their suppliers, adding additional will ensure they have the material necessary to meet the customers demand.
The buyer power is low for Apple; they are continually expanding their product lines that keep the Apple customers loyal. Apple keeps their switching cost high by using existing product designs in new products. Apple uses advertising and marketing to appeal to the customer and influence their decision to buy their product. The company has even limited the amount of product available for immediate release to increase the desire for buyers to purchase and Apple product. The threats of new entrants low, Apple has established a superior product that will keep new entrants from posing a threat. Apple has a strong brand image, customer service, and innovation, making competition difficult. With the exception of Google entering the market, there is little threat of new competitors posing a challenge to the reputable Apple brand. There are brands such as Samsung and HTC that are continually upgrading their products, directly in competition with Apple. So the threat of new entrants needs to consider existing competition who redesign their product. The threat of substitute is medium. There are competitors on the market for all of Apple’s products that could offer comparable technology at a lower price. The computer, smartphone, tablet, portable music and other products have reputable competitors on the market. Apple may be moving ahead of their competition, but as Google taught them, they can lose their market dominance.
Apple Inc. Needs to find a way to remain competitive with Google and other competitors. In 2011, Apple lost the lead in smartphone sales to Samsung based on Googles technology. At any point, Apple can face this challenge again. The recommendations are to move forward with the current plan of offering new product innovations to their customers every year. It leaves consumers awaiting their annual announcements that reveal the new products they have created. The secretiveness of the company has enabled them to protect their technology and plans from falling into the hands of their competitors. They have had substantial financial success, and they have the capital to ensure their security for years to come. It allows them to take risks and think outside the box to not only create, but also present the product to their customers. The recommendation is for Apple Inc. to continue with innovative growth and strong leadership vision.
Apple Inc. has worked hard towards building a brand reputation that is like no other, and by offering the latest technology to the market they can remain competitive regardless of who enters the market. Despite the challenges that the company has faced in the past, moving forward they need to continue with their company vision. Providing the newest and most innovative product that the customers need and demand. Apple Inc. has built a reputation with their name that not only appeals as being a popular product but also for dependability. Google challenged their smartphone market position in 2011, aiding in Samsung beating them in sales. The company has to be prepared for their competitors, and how it can challenge their market position. With Apple’s financial security, they have the opportunity to improve their product and presence in the market continually. Apple’s success is not by chance; they have used all the resources available to them to remain competitive in a very competitive market.