Strategic Appraisal of Apple Inc.

4825 words 20 pages
Strategic Appraisal of Apple Inc.

Introduction The intention of presenting this report is to give a full strategic appraisal and evaluation of Apple Inc. In 1976, the company was founded in a garage in Santa Clara, California. The American multinational corporation mainly involves in designing and marketing consumer electronics, computer software and as well as personal computers. Differentiation is the current strategy position of Apple Inc. There are five main firms in the PC industry and among them; the world’s leading brand is Dell. Apple’s major target is to sustain their present strategic position and to take over the market position as a leader. The key stakeholders include Steve Jobs, employees, lenders and the government.
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The buyer’s power has strength due to the fact that computer are becoming a commodity-like item and also the fact that PC buyers can build their own computer systems. The computer industry is also an industry that resembles following the leader and leaders in this industry are copied by the competitors in addition to each company tries to have the lowest prices. The lack of innovation or too much innovation causes the threat of substitution down mainly. Intel and Microsoft are the two most powerful suppliers in the PC industry. In almost 80 per cent of personal computers, Intel micro processor chips are being used and Microsoft systems are used in 90 per cent of computers which gives the company a substantial bargaining power. Digital music portable Industry (See appendix 2) After applying the Porters 5 forces analysis to this industry, it is founded that there are different degrees of competition in each force; the competitive rivalry is very high, this is due to the competitors in the industry focusing on innovation to overcome each other and by launching new products in order to gain market share. Further-more the companies are being attracted to enter the market and launch their product to gain profit in the industry by the growth of MP3 players. Secondly, the threat of entry; Because of existing companies still have potential to protect their own position and market share, supplier’s power and


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