Threats of New Entrants:
Apple Inc is not safe now days because it has a tough competition with Samsung. Samsung is investing a lot in phone industry and it’s a powerful group now. It is making smart phones like Galaxy series and Note series that are affecting iphone and ipads a lot. Moreover, Android could be an affective competitor itself as a free operating system. (Apple Inc, Case Study). Bargaining power of Suppliers:
When apple iphone is not assembled and only there is a chip supplied to the company then they should maintain a good relationship with the suppliers otherwise the competitors would excel from them as it’s a strong competition age. Apple needs to do outsourcing and contracts with different companies for negotiate prices. (Chapman & Haskisson) Bargaining power of Customers:
Apple determines it price that’s fixed for a period and after that it declines slowly. Customers buying power is not that much as compare to the inflation rate and iphone are considered to be a luxury phone, many people therefore are dissatisfied by its price level. If people would not get what they want they would divert towards the other Smart phones of competitive companies like Samsung etc. Threats of Substitutes:
Now days, many new products are getting into market with various functions, new models and competitive price. Substitute products are a big threat for Apple Inc iphones. (Apple Inc, Case Study). Apple should keep on its policy of not to make products like other companies but it should innovate and create its own luxurious products that can prove themselves as a barrier for other products to the market.
What are the resources, capabilities and distinctive competencies that posed by Apple Inc? Hence, how secure is the company’s competitive advantage?
Resources and Capabilities:
The most important resources and capabilities for Apple Inc was Steve Jobs and the firm’s hardware and software derived successfully. Apple’s programmers,...
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