Apple Porters Five Forces

Topics: Apple Inc., Operating system, Personal computer Pages: 3 (871 words) Published: June 27, 2013
ABSTRACT
The computer industry in the UK is a very competitive market where there is a fight for who has the largest market share. Competition is very high as various marketing strategies are being used by the companies. The computer industry is a combination of both Software and Hardware products. Apple computer is a manufacturer of both the software that is the operating system and the hardware which is the whole component itself which is the laptop and desktop namely iMac and Macbook. Analysis of this report is on the strategies being used by Apple to sustain and also increase its market share in the industry. Evaluation has been done on Apple’s SWOT analysis, the external environment (PEST analysis), Porter’s Five Forces and the Ohmae 3Cs Analysis. After critically analysing this it was found that there is a declining demand for Personal Computers as consumers are now switching to substitute products like the tablets and mobile phones. Apple enjoys customer loyalty while still innovative in its designs and products. Research shows that Apple is the 5th largest in sales of personal computers in the UK behind HP, Dell, Acer and Toshiba as 2012 and that its pricing of its products is high compared to its competitors. In trying to increase its market share, Apple has introduced new and innovative designs and also increased its marketing; example is the Macbook Pro Retina display with very fast processors. In 2012, Apple was able to increase its sales of personal computers. In conclusion, Apple should review its pricing strategy as UK is about to experience another recession which means the buying power of consumers will be reduced.

Porter’s Five Forces Analysis
This analysis examines the environment in which the company is located thereby helping to understand the competitive position of the company. The computer industry consists majorly of hardware and software. Below is the analysis of each of the five forces. Threats of New Entrants

The PC market in...
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