Apple Firm Strategy Analysis – Gautam Thoppey Sudhakar

Topics: IPhone, Apple Inc., Porter five forces analysis Pages: 3 (917 words) Published: February 14, 2013
IST 755 – Firm Strategy Analysis – Gautam Thoppey Sudhakar Introduction
The firm I have chosen to analyze is Apple. Apple, officially called as Apple Inc. was founded on April 1, 1976 by Steve Jobs and Steven Wojniak. It was incorporated on January 3, 1977. (Mohta, 2010) Apple designs and manufactures consumer products such as computers, laptops, tablets, phones and music players and computer software products such as Mac OS Operation System and iTunes. Over the past few years, Apple has gained a large customer base and been able to dominate the market share. Strategic frameworks such as Porters five forces and Strategic focus will help us in analyzing how Apple has managed to sustain its profits over a long period of time. Porter’s five forces framework

Threat of Competition
When it comes to computers, tablets and music players, Apple dominates the market share by a huge margin. The gross profit for Apple in the year 2012 is $65.64 billion whereas the gross profit for HP and Dell is $27.64 billion and $13.06 billion respectively. (Sparks, 2012) HP was unable to compete with Apple in the tablet market that it has started to consider focusing only on the computer industry. In the smartphone market, Samsung has by far been the biggest competitor for Apple. Samsung has 29.1% of the market share in the smartphone market whereas Apple only has 24.2 % of the market share. (Reisinger, 2012) Threat of new entrants

Considering the large customer base Apple has, threat of new entrants is quite low. The new entrants have neither been able to match up to the quality of the Apple products nor to the sales volume held by Apple. Hence, if Apple continues to design and manufacture innovative products, it will be extremely difficult for new entrants to be able to compete with Apple. Threat of Substitutes

When it comes to Apple’s hardware products, there are no substitutes as such that could replace it. However, when it comes to Apple’s software products such as the iTunes,...

References: Asay. M. (2010). Apple Doesn’t target Markets. It Targets People. GIGAOM. Retrieved from: http://gigaom.com/2010/08/26/apple-doesnt-target-markets-it-targets-people/
Bargaining Power of Suppliers. Term Paper Warehouse. Retrieved from:
http://www.termpaperwarehouse.com/essay-on/Bargaining-Power-Of-Suppliers/84367
Lariviere. M. (2011). Operations: Apple’s Secret Sauce? The Kellogg Insight. Retrieved from: http://operationsroom.wordpress.com/2011/11/04/operations-apples-secret-sauce/
Mohta, J. (2010). Poter’s 5 forces model case Apple Inc. Slideshare. Retrieved from: http://www.slideshare.net/jontymohta444/porters-5-forces-model-case-apple-inc
Reisinger, D. (2012). Samsung Pulling away from Apple in smartphone market. CNET. Retrieved from: http://news.cnet.com/8301-1035_3-57424779-94/samsung-pulling-away-from-apple-in-smartphone-market/
Sparks, D. (2012). Competing with Apple is No Fun. The Motley Fool. Retrieved from: http://beta.fool.com/danielsparks/2012/09/03/apple-2012-50-growth/10776/
Spartanski. (2009). Case Study Apple Inc. Slideshare. Retrieved from: http://www.slideshare.net/Spartanski/case-study-apple-inc-2008
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay on Apple Report: Global Strategy Analysis
  • Apple Strategy Analysis Essay
  • Apple Business Strategy Analysis Essay
  • Apple and Their Strategy Essay
  • Apple and Their Strategy Essay
  • Essay about Strategy Analysis of Apple Ipod
  • Marketing Strategy of Apple Essay
  • Apple Strategy Essay

Become a StudyMode Member

Sign Up - It's Free
All Popular | The.Walking.Dead.S08.E12.WEBHDRip.GERMAN.AC3D.5.1.x264-PRETAiL | 3,112,909 3,112,909 836 836 buenas :v disculpen saben cómo se llama el manga donde un chico acosa a una chica en el autobús y esta se deja tocar, además el la vijila con cámaras en su casa? es para una tarea Espero que nunca llegue donde se la cogen otros a hong hong ella es buena solo lo hace x el prota por favor date cuenta no vale la pena esa prra con la te quieres vengar