Porters Five Forces And Apple Inc.

Topics: Apple Inc., Steve Jobs, IPod Pages: 9 (2229 words) Published: April 24, 2014
Apple, Inc.
Group No. 3
Stephen Combs, Elizabeth Hardee, Melissa Sutton
February 12, 2014
The Company
What better time to explore the past, present, and future of Apple, Inc. than at the celebration of Macintosh’s 30th birthday? Apple began in 1976 in Cupertino, California, when three men, Steve Jobs, Steve Wozniak, and Ronald Wayne, decided to start a company that specialized in personal computers. The company began as Apple Computer, Inc. The Apple I was the first product offered by Apple. It was a basic computer kit that included a CPU, RAM, and basic textual-video chips, which is less than what we consider to be a complete personal computer today. (Wikipedia) Apple then produced the Apple II and Apple III, all designed by Wozniak, before the turn of 1980.

1984 was the birth year of the first Macintosh computer. The Macintosh’s success is said by many to be owed to its marketing campaign. It was first introduced to the world in a still-famous commercial aired during the third quarter of the Super Bowl XVIII.

Due to a power struggle between CEO John Sculley and Steve Jobs, Jobs resigned from Apple in 1985 and founded NeXT, Inc. After many failed attempts in the 1990s by Apple to create advanced operating systems and hardware, as well as two CEO changes, Apple purchased NeXT, Inc. and brought Jobs back as an advisor. Stock prices continued to drop under CEO Gil Amelio, and the board of directors replaced him with Steve Jobs as the interim CEO. Jobs immediately began making changes to Apple. (Wikipedia)

The early 2000s was a major turning point for Apple, beginning with the introduction of the first Apple Retail Store. That was followed by the creation of the iPod and the iTunes music store, both of which took off within the first several months of being introduced to the public. The iTunes store is still the leading MP3 store in the world dominating its competition. Apple’s stock went from $6 per share to $80 per share within three years during the first decade of the turn of the century. However, even with this success, Apple could still only boast about 8% ownership of the nation’s personal computer industry. (Wikipedia)

The next few years proved to be dominant in Apple’s history as it transitioned into the mobile device industry. The company introduced its first mobile devices, namely the iPhone, iPod touch, and iPad, for which the company is best known today. In 2007, Jobs announced that the company would be changing its name to Apple, Inc. This was undoubtedly due to its remarkable success in mobile devices and other consumer electronics.

In 2011, Jobs took a medical leave of absence as he battled pancreatic cancer. He died later that same year. Tim Cook assumed the CEO position and has since introduced products such as the iPhone 4S, 5, and 5C, as well as new operating systems iOS 6 and 7. Apple continues to dominate the consumer electronics industry, and will likely lead the next generation into astonishing accomplishments in technology. Industry Analysis of Apple, Inc. using Porter’s Five Forces Model Apple could arguably be a part of two separate industries. Apple clearly started in the computer manufacturing industry with the creation of the Apple I. It further established itself in this market when it created the Mac computers and the Mac OS for them. However, it is obvious that Apple has spent the last decade expanding into the consumer electronics industry. According to Reportlink.com, “The global consumer electronics industry involves the manufacture, distribution and sale of communications and entertainment devices such as digital and video cameras, telephones, stereos MP3 players, DVDs, VCRs, calculators and televisions.” (ReportLinker, 2014) This industry includes companies such as Samsung, Panasonic, LG, and Sony, to name a few. Apple competes in this industry with its iPod, iPhone, and iPad product lines. The Consumer Electronics Association (CEA) stated that...

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