Porter's Five Forces Of Apple

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Introduction This paper analyzes how apple positioned itself to take advantage of unique designs to attract sufficiently large niche market to surpass competition in US and China.in addition, evaluate apple's experience in strategic alliance. Apple, Inc. was founded by Steven Paul Jobs, Steve Wozniak and Ronald Gerald Wayne on April 1, 1976 and is headquartered in Cupertino, CA. The company designs, manufactures, and markets mobile communication and media devices, personal computers, portable music players, besides, sells a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The company sells its products worldwide through their retail stores, online stores, and direct…show more content…
Apple has a strong brand image, innovation and customer service making it different for new entrants to compete against. Threats of substitutes: it not necessary the same products offered by other companies, but rather different products that satisfy the same need as the product being offered. If a supplier increase their prices, a company with differentiated product can pass that cost to its customers. Since Apple competes as a quasi-monopoly in its market segment, Buyer power: in general, the more customers a company has the less barging power each customers will have, and it switching costs are high, then buying power substantially decrease. Since the company competes as a quasi- monopoly in its market segment, there is a reduction of the buyer's…show more content…
Apple and IBM became largely irrelevant, until both companies reemerged at opposite ends of the industry. Now, it seems that the two companies are taking an entirely different tack. Rather than viewing their capabilities as being in conflict with one another, they see enormous synergies. Apple, with its sleek devices and interfaces, gets access to IBM’s data and enterprise sales capabilities. IBM, for its part, can markedly improve its service to corporate clients. Apple’s vision of superior design interfaces led the company to disrupt entire industries, such as music and retail. IBM, on the other hand, has prospered by empowering corporate clients through improving their capabilities, productivity and workflow. This new partnership effectively marries those two visions. Apple in

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