Apple Inc Case Analysis

Suppliers are one of the most important elements for any business. The power of the suppliers depends on the volume of suppliers existing in the market and the uniqueness of their products or services. Apple outsources micro-chip from Intel for high processing technology. The power of customer depends on the purchasing volume, availability of substitutes, price sensitivity and buyers’ incentives. The consumers of Apple have a flexible variety of product line from its competitors.

The inside of a Mac definitely matches the outer slick and modern elegance look. Moreover, I do understand why most PC users aren’t sold with the idea of switching to an Apple product. One main reason why users are scared of items produced by Mac is the price – and I’d have to agree, the price is a scary aspect to face. The starting price for a MacBook is around $1000 – that’s a lot of money to fork out on a computer, but it’s worth it.

In fact, Apple and Samsung together hold about 70% of the market share. Most consumers buy from them and they therefore influence the price of all subsequent firms. Lastly are monopolies where there is a single

3.0 Macro Environment that Effects Apple Social-cultural, technology, economic, political and legislation is the elements of macro environment that effects Apple which are described as below: 3.1 Social-cultural ITunes is Apple’s biggest virtual media store. In general, the image of the Apple also depicts the modern individual lifestyle, combining function and conception, resulting in brand recognition and commitment. In conditions of the demographic features, Apple is targeting the two major generations. One generation is mainly consists of working adults, where they might sustain a higher and stable income to purchase Apple’s expensive and complex equipment. Thusly, the sophisticated and high-tech Apple products would definitely

Competition in business provides consumers and the economy with benefits such as innovation and variety in goods and prices. Monopolies threaten the positive advances to innovation and consumer satisfaction that competition provides. As a result, statues such as the Sherman Act 1890, the Clayton Act 1914 and the Federal Trade Commission Act 1914 prohibits anti-competitive business practices. Microsoft Corporation is one of the top computer companies in the world and in the case of United States v. Microsoft, they were accused of gaining an illegal monopoly in the technology industry.

This is because the barriers to entry into the industry are relatively high for new firms and that the Average Total Cost (ATC) and Average Variable Cost (AVC) for new firms are relatively high compared to the two large soft drink manufacturers because of economies of scale. Additionally, not many firms in their industry produced the same or identical product to make the industry competitive and the information is not freely available because the recipe in Coke’s case is not public record. Therefore, the assumption that Coca-Cola and Pepsi are most likely not to be produced in a perfectly competitive industry is

Apple products so popular, it makes a lot of money. The economic environment of apple that affect consumer buying and spending and affect the wealth of an area include income distribution inflation, recession and spending patterns. A business cycle is the pattern of the level of business activity. Business activity can move from prosperity to recession to recovery.

Thus if we analyse the value chain is almost the same for Walmart, Amazon and eBay. Condiering the comeptetive forces anlaysis ofr all three : • Rivalry in the industry: This is fairly weaker; however Wal-Mart enjoys the topmost slot because of lowest cost, prices and more profits and market share as compared to Amazon and eBay. Because of no entry barriers the market is full of competitors. • Threat of

Weakness: • The price set for the IPhone products by Apple is quite high. IPhone is very expensively priced. • There are lot of restrictions in the phone such as the operating system IOS is very different, which makes it hard for the customers to use other operating systems in the phone. Also some features like battery, which is fixed, and Bluetooth

However, judging by the nature of these corporations: oligopoly in an industry that has a very high cost of entry and high rate of bankruptcy, Apple and other tech giants are here to stay and they cannot fail. Because in which case, where will the people get their source of high end tech products that are well-designed and functional by a team of highly trained professionals. There is a reason why Apple and Google survives the scandals. First, technically they have ties that can clean up or just pay settlements for lawsuits from their huge assets. Secondly, these company render themselves indispensable to the customers that we do not really know where to turn to in case they file for bankruptcy.