This external analysis of Apple Corporation uses an amalgam of Porter’s Five Forces, complementors, and elements of a PEST analysis to examine the threat levels in Apple’s market environment. Even though the analytical scheme is an amalgam of the various models, certain items are broken out for special attention below.
First, in order to obtain an appreciation of that macroenvironment, an overview of Apple is offered. Apple is really involved in two businesses: the computer market and the entertainment and media market. Its approach has been to integrate its new products around its core industry in an effort to construct a digital lifestyle that encompasses not only its line of computers but its new products such as the iPod, the iPhone and online services such as iTunes.
The various models are presented and then applied to the market that Apple inhabits. Additionally, since the Five Forces are dynamic and because Apple’s responses are dynamic, an assessment of Apple’s opportunities, threats, strengths and weaknesses is presented in light of those threats to its markets. It is important to understand the impact of the external forces in light of some of Apple’s internal responses and mechanisms so that an appreciation of the dynamic is understood.
Finally a conclusion is offered in light of the result of the forces assessment. Attention is paid to several outstanding issues and to what actions Apple Corporation needs to be sensitive to and to act upon if it is going to continue to be successful.
Apple, Inc. and its wholly-owned subsidiaries design, manufacture, and market personal computers, portable digital music players, and mobile communication devices and sell a variety of related software, services, peripherals, and networking solutions. Apple sells its products worldwide through its online stores, its retail stores, its direct sales force, and third-party wholesalers, resellers, and value-added resellers. In addition,