Apple Case Solution

374 Words2 Pages
CIS 689 40-Entrepreneurship: Launching a High Tech Venture (Submitted by Yuqing Fu) Case: Apple Inc. in 2010 Question: How sustainable is Apple’s competitive advantage in PC’s? Constant innovations stylish products, such as iPad, iPhone and the newly launched iOS 4.2 operation system, make Apple the industry’s leading technology company. Many attribute the success to its leader Steve Jobs at the helm. However, we can analyze Apple’s sustainable competitive advantages according to Porter’s five forces analysis. 1. Intense Current Competition The top four PC vendors are HP, Dell, Acer and Lenovo, which accounted for 55% of the worldwide shipment. Apple faces fierce competition from these companies. Nonetheless, with its innovative and stylish products, it’s no wonder that they set a higher price than other companies. The innovation and the technology advances help Apple win in the competition. 2. Threat of new entrance: low The strong branding awareness of the existing companies and the high starting investment prevent the entry of the new competitors. 3. Threat of substitute products: high Although there are many substitute products in the market, the Apple products are differentiated from others. Especially its own operation system hindered the substitute products. In the other words, customers need to get the apple products when they use Apple PCs. The iPod, iPhone and iPad products play dominant roles to promote the PCs’ sales. 4. Bargaining power of suppliers: low According to the reading material, there are two types of suppliers: Those that made products with a few sources-Microprocessors and Operating system, and those made products with many sources, such as memory sticks, disk drives and keyboards. 5. Bargaining power of customers: high As the switching costs are low, buyers have strong powers in this position. All in all,

More about Apple Case Solution

Open Document