Introduction Apple Inc. is a company with a legendary history, largely responsible for the development of personal computers. Apple was not the first company that has distributed a portable media player, but it appearance exceeded all predecessors: Apple was aware of the expansion of the Internet and it understood what his predecessors did not: that the future of the media ultimately will be linked to the development of trade on the Internet market. Being aware of the inevitability of change, Apple has applied the principle known as the "Law of Chum", which states that "commotion" destroy traditional and create new platforms ideal for more innovation, and according to that, the complex networks in order not only survive but also progress, …show more content…
When a producer has a little impact on the price of its product it creates a limited profit potential. As a result, a company needs to act the way market dictates. On the other hand, too much market power brings other problems along, as the Apple Inc. found to its dismay. Apple Inc. is a company with the largest market power and is therefore called a near-monopoly in the oligopolistic industry it operates in. Even though Apple Inc. operates in the oligopolistic market, since it is not the only provider in the smartphone/tablet market, or in the operating systems market, it takes a dominant market share. In order to analyze Apple’s market position, we need to differentiate between diverse market structures, to identify the market characteristics Apple operates in, to determine Apple’s market position, and eventually its market power. Literature Review Market structure refers to the physical characteristics of the markets in which companies operate. There are two market extremes out of which the first one is called perfect competition, and the second one is monopoly. Under perfect competition, no player has market power, meaning that if a company even slightly increases the price, the demand for its products falls to …show more content…
Now we will focus on the characteristics of oligopoly, since that is the market structure Apple Inc. operates in. In modern market economies oligopoly emerges as a very common form of market structure. It identifies the market condition or a branch of economic situation with an oligopolistic market characteristics that is characterized by a few sellers of products that can be substituted and which have a large cross-elasticity of demand (Perloff, 2012). Due to a small number of sellers, each individual player has a significant share of the market and the possibility of a noticeable impact on the market. If there are perfect mutual substitution products of different vendors we say that it is a pure oligopoly, and if the mutual substitution of their products is imperfect, it is a differentiated oligopoly (Perloff, 2012). Oligopolists can noticeably affect the market, but in doing so he is compelled to take into account the reaction of the masses of customers and on the reaction of its competitors. Oligopolies usually occur in heavy industry, in the production of steel, mineral resources, oil, cars, aircraft, computers and other products. Companies that produce a significant portion of output often become major players because they can produce more efficiently than small businesses and use the effects of economies of scale. Since each firm in an oligopolistic market has a relatively
Market Structure - Oligopoly Oligopoly is a market structure whereby a few number of firms owns a lion’s share in the market. This market structure is similar to monopoly, except that instead of one firm, two or more firms have control in the market. In an oligopoly, there are no upper limits to the number of firms, but the number must be nadir enough that the operations of one firm remarkably influence and affects the others (Investopedia, 2003). The Walt Disney Company is categorized under an oligopoly market structure.
How Sustainable is Apple’s Competitive position Introduction Apple started out simply as a computer company producing Macintosh computers and software, but has since evolved over the years to manufacture other products. It introduced iPods in 2001 for music players, in 2007, it started producing iPhones. Its products are consumer oriented and this has contributed to the success of the company. Apple also views innovation as basis of survival and business development (Yoffie, 2012).
Disruptive Innovation Xiaomi is often mentioned in the context of disruptive innovation. But does Xiaomi qualify? Figure 2.0 (Christensen ) https://www.interaction-design.org/literature/book/the-encyclopedia-of-human-computer-interaction-2nd-ed/disruptive-innovation The theory of disruptive innovation was introduced by Clayton Christensen, of Harvard Business School, in his book “The Innovator’s Dilemma” (1997).
Porters Five Forces Analysis: Samsung Electronics Introduction Samsung Electronics focuses in three specific areas; Consumer Electronics, IT & Mobile Communications and Device Solution. Porter’s Five Forces model has been used to analyse Samsung Electronics competitive position within the global market they operate in. By using this model, an evaluation of their current position will highlight which of the five forces are “affecting the intensity of competition in an industry and its profitability level” (Jurevicius, 2013). Nevertheless, when conducting analysis on an international company such as this, studying of market trends is already carried out thoroughly to ensure that they are fully aware of that market, in order to achieve success and maintain within it. With this in mind, it would be considered that Samsung Electronics would have a relatively good competitive advantage against other rival companies.
Apple states in their Form K-10 Report (2017, p.1) they are “committed to bringing the best user experience to its customers through innovative hardware, software and services.” In an Industry where profit margins are low, technologies are constantly evolving and competition is high it is essential that Apple continues to offer innovative and simple products that increases customer experience (Heracleous, 2013) so to maintain a competitive advantage. A variety of tools have been used to evaluate Apple’s external and internal environment, including the PESTEL (Appendix 1), Porter’s Five Forces Analysis (Appendix 2), SWOT (Appendix 3). It is envisaged that the information derived from these tools and the associated analysis will support Apple’s CEO to make strategic decisions that addresses the challenges ahead in the short term, ensuring Apple can be competitive in the long term (Rothaermal, 2017).
Apple Inc., an American multinational corporation was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 197. The headquarters of Apple is located in Cupertino, California and it designs, manufactures and sells consumer electronics, computer software as well as personal computers. (Reference for Businesses) The company's wide range of products and services include the iPhone, iPad, Mac, iPod, Apple TV, a variety of consumer and professional software applications, both the iOS and OS X operating systems, iCloud and several other product accessories. Apple not only offers a variety of mobile communication, media devices and portable digital music players but they provide a variety of related software, services, networking solutions
Apple’s vision Apple 's vision is to create and deliver electronic music and personal computers to individuals, teachers, employees, students, and computers used in government agencies and companies. Apple 's strategy focused on enhancing its ability to design and contribute to its development, It’s easy to use and distinctive design and innovative. Importance of knowledge management in Apple Company Knowledge Management (KM) is a discipline that improves Apple 's ability to better solve problems, adapt, evolve to meet changing business requirements, and survive with disruptive changes.
Apple Inc. strives to limit the time between ordering for the goods and receipt of the same. Normally, long distribution channels do not only influence the pricing of the products, but also the time when the consumers receive the product. Apple Inc. commands a great power in the market because it has differentiated
Competitive strategy is a suit of methods and action sequence deliberately planned and put into place by companies in the face of market competition. This seems to be a clear way of keeping their market shares, expanding sales and managing the product lines to deliver desired results. The corporate world often needs some sorts of solid strategies considering the trends of the market competition. Beyond the issues of quality and distribution, companies often need to plan ahead and protect their market share in the sale.
ACHIEVING GLOBAL COMPETITIVE ADVANTAGE OF APPLE INC. Apple Inc. is an American conglomerate company located in one immeasurable loop, Cupertino, California in the middle of the Silicon Valley. (OPPapers, 2012). Apple is motivated on their designing, developing, innovating new products like the personal computers, other related software products, and the electronic products such as MP3 players and iPods. Apple Inc.’s main products are iMac, iPod, iPhone, iPads and its latest advanced product is iWatch, which is on the edge of creating another revolution after iPhone. Apple Inc. has transformed its image from an inventive computer manufacturer to a fully-fledged consumer 's electronic company.
1. INTRODUCTION Apple Inc. Official, a famous IT company in the world, began with a computer. They produce electronic gadgets with a good quality and attractive over the year. With their massive success, however, they are actually having problems, regardless internal or external problems.
3.0 Macro Environment that Effects Apple Social-cultural, technology, economic, political and legislation is the elements of macro environment that effects Apple which are described as below: 3.1 Social-cultural ITunes is Apple’s biggest virtual media store. In general, the image of the Apple also depicts the modern individual lifestyle, combining function and conception, resulting in brand recognition and commitment. In conditions of the demographic features, Apple is targeting the two major generations. One generation is mainly consists of working adults, where they might sustain a higher and stable income to purchase Apple’s expensive and complex equipment. Thusly, the sophisticated and high-tech Apple products would definitely
The company’s products and services include the infamous iPod, iPad, iPhone, Mac, and Apple TV. Apple has a collection of consumer software appliances, various operating systems, and a variety of other services. (apple.com, 2014). Within this research paper, we will discuss Apple’s internal and external reports along with factual examples to support the reasoning provided. Introduction Apple Inc. is an American international association headquartered in Cupertino, California.
According to Bullen and Rockart (1981), critical success factor is the significant skills, areas, or actions of a company that contributes to the competitive performance that can make it become successful. The main key success factor of Apple is its core competency, technology. The company that owns the advanced technology may get high revenue and a larger market share when imply this technology in its product or service (Roth & Miller, 1992). Apple has used this core competency to develop many highly functional and usable digital device and software which can develop the loyalty of customers to its brand (Laugesen & Yuan, 2010). For example, many electronics products in the market are use Google’s Android system, while Apple uses its own system, iOS in all of its digital devices (Johnson, et al.,
They are differentiated by their products such as soft drinks and soap powder. There also exist little firms who produce similar products such as petrol. However, in oligopoly, there are barriers to enter the market. Similar to monopoly, the barriers are no different, and it differs from one industry to the other. This is why the firms in oligopoly are interdependent with each other, because the firms all have large market shares and each of their actions would affect the rest, so any decision-making will be based on their competitors’ reactions.