The probability of success is so low that competitors pursue niche markets rather than trying to compete with the bigger companies. Apple positioned itself years before so it has created its space in the computer industry just as IBM, Hewlett-Packard, Gateway and Dell. Bargaining Power of Suppliers: The suppliers are plentiful and must compete with others to ensure that they will be able to retain the business of the computer companies. The position is low especially since the larger companies can readily switch to another supplier without any major repercussions. Suppliers adjust pricing and quality to make their products more attractive so competition is high leaving them in a low supplier power position.
The overall benefits that the OLED screen would bring to the phone are durability, ability to make a curved display, superior color display, lower energy consumption, and the fact that it’s thinner and lighter than an LCD display. I highly recommend that you make this decision because it will make the iPhone more innovative and produce higher sales. Sincerely, Bob Marley Apple Display Engineer The mobile phone industry is an extremely competitive business and if you’re not working to be ahead, you have to play catch up. Apple’s iPhone is known to be very
Financial Reporting Project Part III Apple Inc. and Microsoft Corp. are two very interesting companies to compare when taking into account all the publicity they receive and the public perception of the two. A very shocking find was the large difference in acid-test ratios. The current assets to current liabilities ratio for Microsoft was more than double that of Apple. This gives the users of the financial statements a good bit of extra security when looking at the ability of the company to pay their short term debt. In a time when Apple is pounding the market with time tested software and product name, Microsoft, a company that is looking to find a new niche in a world of rapidly increasing technology, is looking to assure investors that while times are a bit uncertain for them in terms of product, managers have a firm grasp on fiscal responsibility and will never throw caution to the wind.
So choice among them would increase, and optimal solution could be made in terms of price, quality, etc. Buyer power Brand awareness of both Hp and Compaq are high, and number of loyal customers is high too. So in the case of merge, and becoming one larger company, number of buyers would have been increased too. Threat of substitutes There are almost no substitutes for computers, except the fact that, one can substitute desktop computer for notebook computer. There is no alternative to satisfy the same demand in that industry.
Outlining projected competitive situation & competitor profiles 3. SONY’S POTENTIAL COMPETITORS 3.1 Sony’s Position Sony’s most notable competitors are Apple, Samsung, Microsoft and Nintendo. Sony has become a market follower which is just below Samsung the market challenger, and still has enough presence to gain back more market share if strategies are implemented efficiently and effectively. These strategies have to be aimed at keeping manufacturing costs low and the product quality and service high. Schnaars (2010) emphasises that in the case of Sony, the specific strategies to implement in order to gain more market share and increase sales are: the cloner, which lives parasitically off the leader by producing a product which is similar in appearance; the imitator, which copies some things from the leader and uses these things as a model but maintains differentiation in terms of packaging, pricing and advertising; and the adapter, which often improves the leader’s products.
Recommendation: Apple should keep creating innovative functions and increasing more apps, using broad differentiation strategy, adjusting the price to be accepted by customers 3. Large market demand in Asian countries As the decreasing sales of personal computer in Japan and Europe, Asian countries became the largest market in 2011, especially China. The preference of inexpensive feature devices in Asian countries is a challenge for Apple’s premium pricing. Recommendation: To adjust the price to be accepted by customers and reduce the cost on each part of value chain. 4.
The external factors which contributed to above issues are market saturation, competition and cost factors. With the rise of Android, companies like Samsung started offering products with comparable technologies at lesser price. With consumer looking for value for money, Apple no longer was perceived as the best one. Apple was not successful in emerging markets due
Where Steve Jobs was known for his mercurial personality, Tim Cook is considered to be an introvert who is highly secretive. It will be a tough ask for Tim Cook to sustain the position of Apple in the future. With new smartphone companies coming up in the fray, Apple has to find a way so that their die hard loyalists or future smartphone users don’t get veered towards buying the ever so cheap smartphones that are high on specifications, some even matching those offered by the latest Iphone. Cook has to make sure that the novelty factor that is always associated with the Apple products does not get eroded with
Porter Five Forces Model 1. The risk of entry by potential competitors The threat of new entrants in the computer hardware manufacturing industry is very weak. Currently the market is dominated by several major companies such as Hewlett-Packard Company and Dell Inc. which have gained most of the market share. Each firm has strong brand loyalty and sufficient resources. The dominant companies have created a huge barrier to the new entrants since these small companies have to require large and significant investments in Research and Development to develop new innovative products.
Corporate and Business Strategy: Team Case 2 Date: 3/8/2009 Re: Competitor Analysis: Wal-Mart Company and Dell After a thorough analysis focusing on key strategies of Wal-Mart and Dell, which are outlined in the following pages, our final conclusion is that many of their competitive advantages cannot be easily replicated. However, several of their successful strategies outlined below could be implemented to help make XYZ companies more profitable. Matching Dell Between 1994 and 1998, Dell Computer Corporation grew twice as fast as major competitors in the personal computer market. Dell achieved this feat by successfully implementing the “Direct Model,” a strategy relying on the direct delivery of customized PC’s at a relatively low price. Competitors quickly recognized Dell’s success; however, none were able to successfully restructure their operations to reach the profit levels that Dell achieved.