The case documents the history of Apple computer, from its foundation through ti

Question

The case documents the history of Apple computer, from its foundation through till the end of 2008. The case covers all major events in the history of this company, including the success of the Apple II, Apple's mixed results with the early Macintosh line of computers, the company's problems in the 1990s, its re-emergence after the return of Steve Jobs in the late 1990s, and the company's introduction of the innovative iPod and iPhone lines. Unfortunately, the history of Apple computer is just that, history. While interesting, it realistically has limited applicability to the present given the rapid proliferation of technological change. At the same time, Chapter 3 introduces the concept of Michael Porter's seminal article- How Competitive Forces Shape Strategy on pages 56-66. There are few original works in strategy that have had the impact of Porter's work in this area.

Case Requirements: Read the article: https://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy (Links to an external site.) Links to an external site. Using the text materials related to Case #1, Apple, Inc , and the original material in the article referenced in #1, construct a 5 Forces Analysis for Apple Computer that would be appropriate for the current situation for Apple computer. As part of that analysis, be sure to: Address each of the 5 main elements in a short paragraph, focusing on an analysis using the terms appropriate to Porter's 5 Forces Model. Each of the five elements contains specific details that expand on that particular force. Using your Glo-bus Group as follows: Group A & F: Risk of entry by potential competitors Group B & G: Bargaining power of buyers Group C & I: Threat of substitutes Group D: Bargaining power of suppliers: Group E: Intensity of rivalry among established firms. Depending on your Glo-bus group as above, develop a more fully developed forces analysis for your assigned "force" for Apple Computer. This is an individual exercise- the reference to groups is only to provide a way to assign you to one of the 5 elements. Often in our textbooks we are exposed to summary interpretations of important concepts. This assignment has provided you an opportunity to examine an summary and the original article of an important concept in current strategic management. Compare the original article by Michael Porter and the summary treatment presented in your text. If you were this course instructor, what would you say are the main benefits to referring back to the original work in this case? The drawbacks?

Explanation / Answer

Bargaining power of suppliers

Bargaining power of suppliers was a major challenge that rocked the apple company in the early years of its formation. The suppliers of the products that the company used to manufacture the computers and the iPhones were obtained at high prices. It, therefore, tended to reduce the profit margin of the organization that led to its near collapse in the late years of the 90’s. The company had to change its organizational structure and it’s through it that Steve Jobs rejoined the company as the CEO (Cornelissen, 2014).

Threats of new entrants

The threat of new entrants was a second challenge that faced the company. There were new companies that were establishing their new branches in the United States of America. Such companies included Toshiba, Hip among others. These companies produced computer products that were cheaper and could be afforded by the low-income earners as well as the high-income earners. These companies, therefore, reduced the customer base of the company.

Industry rivalry

Industry rivalry was also a major concern that faced the Apple Company. In its formative years, Apple Inc. faced seriously rivalry from other industries that provided the various services in the telecommunication industries like Dell. The rivalry was so much that the CEO of Dell computers once said that the best thing for Apple Inc. was to close down and share its dividends to its shareholders.

Threat of substitutes

The threat of substitutes was another challenge that faced the Apple Company. The Apple Inc. was faced with the challenge of being replaced by other companies that provided computer solutions and mobile company solutions (Heracleous & Papachroni, 2012). The apple company had to come up with new a strategy that will help it to overcome the competition that was set up by other companies. The apple company had to decide new ways that would help it to cut their own niche in the computer industries. The company, therefore, developed new strategies that would enhance the quality of their products so that they impress the clients and thus attract them hence increase the company’s revenue.

Bargaining power of buyers

Bargaining power of buyers was a fifth challenge that faced the apple company. There were other substitute brands that were offered at low prices compared to the products that were offered by other companies. The apple company had to increase their advertising which was going to increase the awareness of the products that the apple company. Increased awareness of these products allowed the customers to purchase the apple products which increased their sales. With its products, the apple company targeted the middle-income earners and the high-end earners.

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