Case Study on Apple-Iphone

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MBA61 –MARKETING ASSIGNMENT 2 APPLE INC. CASE STUDY 1. Apple Inc. (Apple) is an American multinational corporation that designs, manufactures and sells mobile communication and media devices, personal computers and portable digital music players, as well as a variety of related software, services, peripherals, networking solutions and third-party digital content and applications. The company's products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and OS X operating systems, iCloud, and a variety of accessory, service and support offerings. The Company also sells and delivers digital content and applications through the iTunes Store, App StoreSM, iBookstoreSM, and Mac App Store. Apple’s stunning financial performance is mainly attributed to its differentiated products, integrating excellent hardware, software and content. However, another factor that significantly contributed to Apple’s success is the way in which the company manages the critical five forces within its industry. Michael Porter’s Five Forces Model is a commonly used model in Strategic Management for purposes of analyzing how the ability of a firm to generate or maintain a competitive advantage. It uses concepts developed in Industrial Organization Economics (IOE) to derive five forces that determine the competitive intensity and therefore the attractiveness of a market, namely the threat of substitute products, the threat of the entry of new competitors, the intensity of competitive rivalry, the bargaining power of customers and the bargaining power of suppliers. In applying the Porter’s five forces model on Apple, one may conclude that Apple demonstrates its superiority in the smartphone/tablet industry. Apple is not just innovative, it is disruptive. Threat of substitutes: Apple’s products are facing
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