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Apple competitor analysis
Apple competition case study
Apple competition case study
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Segmentation is putting marketing focus on a particular group of potential consumers. The computer industry has many companies that produce computers but Mac by Apple has segmented them self from other computer companies like HP and Sony. The “five competitive forces and competitors” (Kotler & Keller, 2009, p.154) described by Michael Porter are the “threat of intense segment rivalry, the threat of new entrants, the threat of substitute products, the threat of buyers’ growing bargaining power, and the threat of suppliers’ growing bargaining power” (pp.154-155). Mac stands alone from their competitors although they do advertise against the PC letting the public understand Mac is not the typical computer. Apple advertises Mac letting consumers know if they purchase a Mac they do not need an anti virus protection like PC owners as hackers haven’t been able to break Apple’s code. This could be a threat to Apple if a hacker does break the code and Mac’s start to crash. Mac doesn’t feel the “threat of new entrants” (Kotler & Keller, p.155) as they have innovated the computer, targeting consumers who want the latest in computer technology. Apple does what others don’t do, they sell their computers from either their own store or from a licensed retailer who has an Apple representative available to answer any consumer questions. Raquel, I enjoyed your write –up on Mac vs .Industry. You are correct in stating that Mac doesn’t feel the threat of new entrants at all. Their product, although a bit more expensive than one would like to spend, provides overall the best quality without the constant fear of virus attacks. It is removing that fear is what keeps the customers loyal and willing to pay whatever the amount t... ... middle of paper ... ...rgaining power” (Kotler & Keller, p.155). In conclusion, Apple is a market leader with Mac as they have advanced technology preventing hackers from invading the computer without anti virus protection. They are also able to sell Macs for a price double or triple the cost of a PC. The market challengers for Mac are HP, Sony, Toshiba, and Dell to name a few. For Mac to monopolize the market they must defend and continuously innovate upgrades to meet consumers needs and wants within the computer market. References Apple. (2010, January 21). Apple reports first quarter results. Apple Inc.. Retrieved February 1, 2010, from http://www.apple.com/pr/library/2009/01/21results.html Kotler, P. & Keller, K.L. (2009). Crafting the brand positioning and dealing with competition. A Framework For Marketing Management 4th ed. Pearson Prentice Hall: New Jersey.
Porter’s Five Forces is defined as threats of new entrants, bargaining power of suppliers, power of buyers, the threat of substitutes and rivalry among existing competitors. New entrants into the industry aim to gain market share from rivals, so the intensity of competition may require to make changes on current strategy of marketing to maintain existing market share. The bargaining power of suppliers is one of the threats on the industry where price changes or product quality by suppliers can impact the profitability. Therefore, it is important for the companies to keep alternate suppliers or a contract to ensure prices, quality and quantity of the product so to avoid the company's supply from falling behind. The power of buyers can force the companies to lower the prices and offer different type products and service. Buyer can threaten the company with the competitors which may cause a negative impact on the bottom line to the companies. Thus, it is important to create a loyalty market share to avoid this threat. The threat of substitutes increases when another industry offers a similar product or services to customers within the same industry with a lower price. In this case, the industry profitability sinks since the product is available at a better price. This threat forces most competitors to price match or better performance. Rivalry among existing competitors ...
The introduction of Apple’s Macintosh in 1984 revolutionized the personal computer industry (North, 2011). Although Jobs did not invent the
In 1976, Apple was just an idea being made in a garage by Steve Wozniak and the well-known owner of Apple, Steven Jobs. The two were college drop-outs and were looked at as outcasts. The first invention that Apple introduced was the Apple I. On April 1, 1976 Apple computer was made a reality (Glen). The company did not take off until 1977, when Apple introduced the Apple II. The Apple II was the first personal computer to have plastic casing and color graphics (Glen). Then in early 1978, the Apple Disk II was invented. It was Apple’s most inexpensive product of the time and had easy to use floppy disk (Glen). By 1980, the Apple III had been invented and the sales were increasing and so was the company. Apple had several of thousand employees and managers and had developed many investors. Fast forward twenty-one years to 2001, when Apple made the iPod. From there Apple grew like wildfire, with the invention of the iPhone in 2007 and many version...
Apple Inc. uses the Apple brand to compete across several highly competitive markets, including the personal computer industry with its Macintosh line of computers and related software, the consumer electronics industry with products such as the iPod, digital music distribution through its iTunes Music Store, the smart phone market with the Apple iPhone, magazine, book, games and applications publishing via the AppsStore for iPhone and the iPad tablet computing device, and movie and TV content distribution with Apple TV. For marketers, the company is also establishing a very strong presence to rival Google in the advertising market, via its Apps business and iAd network
Segmentation is a procedure of splitting up the market into different groups of consumers who the same common needs and wants. There are different types of segmentation like geographical segmentation, behavioral segmentation, demographic segmentation, lifestyle segmentation. Lexus divided their vehicles into two categories they four wheel drives and two wheel drives.
“Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.”
2: Finkle, Todd A., and Michael L. Mallin. "Steve Jobs and Apple, Inc." Journal of the International Academy for Case Studies 16.8 (2010): 49+. General OneFile. Web. 19 Oct. 2011.
Let’s take a trip back in time and review the evolution of a computer company. It’s not IBM or Microsoft. This company is Apple Computers, Incorporated. In the year 1976, before most people even thought about buying a computer for their homes. Back then the computer community was only a few nerds building simple computers from hobby kits. When Steve Wozniak and Steve Jobs sold a van and two programmable calculators for thirteen hundred dollars and started Apple Computers, Inc., in Jobs garage, the reach for success seemed far.
Apple can adopt the strategy to portray a picture of a not so conducive less profitable market, which could discourage new entrants from picking that path as they will be demotivated by the low return on investment resulting from low profitability levels. In order for apple to create a niche for t numerous products, it needs to adopt and implement such bold strategies of defense to protect their interests and continue to be profitable and successful (Ideavist, 2011). Entry of a new company into the technology sector would spell doom for most companies already struggling for market share as better priced and reliable products could imply consumers would shift their preference to the new entrant leading to a negative volume of sales stir for most already established companies. Another strategy that could be employed as part of Apple’s defense could be the pre-entry strategies that make it even harder for new entrants to compete and enter into the sector and this involve continuous improvement for their products, covering
Segmentation is a marketing strategy that involves separating a wide target market into small groups of customers who share the common need of using or purchasing the product that needs to be marketed. Market segmentation strategies are utilized to identify these groups of consumers and strategies are designed and implemented to make the product or service appeal to them. Support and also the product will be strategically placed in order to successfully achieve the ultimate marketing goal. Businesses and organizations may come up with different type of strategies involving different products and catchy phrases depending on the product or the target segment.
In the releasing of our new product we will need to exercise precise and careful observation of all incoming feedback channels. We will need to respond responsibly to any negative responses or defects that may occur. We plan on taking the information we receive and use it to improve our current and future products. We will need to also observe and actively participate in our factories supply chain management activities and operations. By instituting the correct decisions and observation methods regarding our evaluation and control of our new Mac computer and manufacturing factories we feel that Apple will be able to reach new heights.
Computers and technology makes it easier for entrepreneurs to enter this market. Not only are major tech companies competing against one another, but they are also competing against little programmers that know how to code. In our time you will never know with certainty when a small group of engineers or computer scientists are going to create, “next big thing”. Apple has been able to have a competitive advantage over its competitor by creating the highest quality products and services. Some of Apple’s current competitors are Microsoft, Google, and Facebook, and a few other tech companies as well. Most people strongly people Apple is one of the stronger company its industry, but then again some other people have biased views. Financially, they are the strongest company in the world. Also people are always willing to pay a premium for their products because of their durability, quality, and prior experiences with Apple products. Apple is always on the look at for new innovative ideas and concept that are being produced by self-motivated entrepreneurs. They are always looking to hire bright minds and let them develop within the company. A lot of entrepreneurs, programmers and engineers do not have a problem working for Apple because of their well-established perks. Apple offers its employees of the best benefits in the world. They also fairly compensate their employees that work in the front-end store as
In the late 1990s, with the release of Windows, Apple was placed on the right track. Apple released its’ 20th Anniversary Macintosh in 1997 which marked the beginning of Apple’s return (Crofford, 2011). The next year, Apple released the IMac, which was a highly received by the public. Apple reported over $80 billion in cash on its’ last Form 10-K filing with the Securities and Exchange Commission (Emerson, 2011). Today Apple produces several different products including IPhone...
From 1980 to 1996, Apple’s competitive range in the PC industry was rocky. Although Apples products were unique and well built, they were overpriced compared to competing products from IBM and others. As competitor prices dropped, Apple prices stayed the same and the company saw a decline in sales as customers opted to purchase from its competitors. John Sculley, former CEO of Apple, took many steps to improve the company’s competitive advantage. One of those steps was to compete with price by producing a low-cost computers that appealed to a mass-market. The second step was to form an alliance with rivals IBM and Novel in order to create new operating systems and applications...
The Apple brand name is a household name, the brand value of Apple, Inc. improved to $13,724 million in 2008 from $11,037 million in 2007 (Datamonitor PLC, 2009). Apple is different from its competitors because it produces high quality products, its products are also unique and attractive and this has helped to increase its market shares. Since Apple is known globally, 54% profits come from foreign markets (Datamonitor PLC, 2009). Apple products are easy to use and carry around, majority of its products are light, small and very easy to carry around and it has a major advantage of product diversity, there is something for every one of all ages.