How Apple Became a Monopoly

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Professor Lundblad
ARE130
1/17/13
James Chang

Market Member Analysis: Apple
In our ARE 130 course we have learned about the concept of how individuals can understand markets by using several strategic market components. The ideas incorporated during lecture broke down the complicated market strategies in to an easier terminology that would help the students understand the materials better. Among these strategic components, Porter’s Five Forces Model was highlighted in class; the model explains the framework for industry analysis and business strategy development by using three ‘horizontal’ competition and two ‘vertical’ competition(1). The three horizontal competitions include the threat of substitute products, the threat of established rivals, and the threat of new entrants. The two vertical competitions include the bargaining power of suppliers and the bargaining power of customers. By using this idea, Porter approaches the market by understanding the different market members. These fundamentals play a crucial role in the market channel, which is a set of practices used from the point of production to the point of consumption. It is basically a way we can follow a good through the market. In order to have a better understanding of these concepts, I will be analyzing the marketing channel and the usage of five forces of Apple.

Apple was found in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. The company had a slow start off but after the introduction of the iPod, the company has made a tremendous progress. The success of the iPod came from the outstanding marketing strategies that Apple has performed. When IPod was first introduced to the public, Apple has made sure that the customers had to use a software called the iTunes. In that software, Apple has added a feature called iTunes store. This was a great marketing strategy for apple, because in addition to marketing Music players, Apple also made revenue through selling downloadable music. In...
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