Case Study: Apple, Inc
1. Does it make good strategic sense for Apple to be a competitor in the computer, digital music player, and mobile phone industries? Are the value chain activities that Apple performs in computers, digital music players, and mobile phones very similar and “compatible” or are there very important differences from product to product? Which of the three products lines —computers, digital music players, or mobile phones—do you think is most important to Apple’s future growth and profitability? Why? a. For Apple, yes it does make sense to be a competitor in all 3 industries. They have developed themselves as a strong name in the market and have a stand out product against the competitors in each industry. b. The value chain activities that Apple performs in each industry are similar. The things that give their product value and have them stand out among the competition carry through each product. These things include the advanced technology, durability, and convenience for user. c. All three of the products stand a good chance for the future but the most important is the mobile phone. Many people use their phone more then they use anything else. The phone has the capability of the digital music player as well as most functions of the computer. The mobile phone has been the most accessible and affordable Apple product to the broadest range of consumers and will be the most important to their future growth and profitability. 2. In which industry—computers or digital music players—is competition more intense? Prepare a five-forces analysis of each industry to support your position. d. 5 force analysis: Computers
i. Bargaining power of suppliers- With computer manufacturing there are little suppliers, therefore there is little bargaining power with the supplier. It would be costly to switch suppliers if another was found. ii. Bargaining power of buyers- The bargaining power...
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