Apple Inc Faces Driving Industry Competition
Competitive Rivalry (High)
Apple is facing the high rivalry in the industry because the competitors in the market are offering products at the competitive prices with the new inventions, example HTC, Samsung, LG have the same product like Apple or iPhone but offering the products or smartphones at the minimum prices. However, the customer has the preferences of the low switching cost, this is the reason that company is facing high competition in the industry.
Bargaining Power Of The Customers (High)
Concerning the bargaining powers of the customers high in the industry because the individual can complain about the product and make the company or products reputation can be affected, however, if customers are not satisfied they can move to another brand. Therefore, customers are strong and the Apple needs to continue its innovation and the customer satisfaction towards the customers.
Bargaining Power Of The Suppliers (Low)
The bargaining power of the suppliers is low because the suppliers are maximum in number and the company Apple needs the innovative products in the market, therefore, suppliers in the industry have less value. Basic products can be required by the company and overall supply is high in the industry, it could be said that Apple has a number of vendors and suppliers in the industry.
Threat Of The Substitution (Low)
The threat of the substitution is low because the substitution has the low performance in the industry as compared to the Apple, however, customers could use professional cameras as they have clear results or they can use the internet or other sources to contact people. However, the performance of the substitution is not effective in the industry and the customers, therefore, prefer to use the latest technology with all functions.
Threat Of The New Entrants (Medium)
As regards to the threat of the new entrants, there is the medium competition because the new entrants need the high cost to enter the industry because they need the high capital. For the new business, it may not be simple to target the customers as the customers are already loyal towards their brands, especially, Apple has a maximum number of loyal customers in the market, therefore, for Apple the threat of the new entrants is medium.
However, from the porter five analysis, it is known that Apple has the strong position in the industry because latest new revealed that Apple is on the most valuable brands in the year 2017 because the company is focused on the spurs demand and the pricing power. Thus, the Apple has earned the profit of 92% in the Smartphone category (Badenhausen, 2017).
- Badenhausen, K. (2017, May 23). Apple Heads The World’s Most Valuable Brands Of 2017 At $170 Billion. Retrieved June 5, 2017, from https://www.forbes.com/sites/kurtbadenhausen/2017/05/23/apple-heads-the-worlds-most-valuable-brands-of-2017-at-170-billion/#12345c5d384b