are a key matrix through which firms can guage whether their products can stand Apple’s brand is the world’s most valuable and recognizable brand. He also bought Pixar which is also a huge name in Apple, Inc. engages in the design, manufacture, and sale of smartphones, personal computers, tablets, wearables and accessories, and other variety of related services. The rest of the company’s products include wearables, home and accessories, which account for another 9.4% of the revenue and is the fastest growing Apple’s product category, growing by 41% in 2019. Industry Analysis Apple Inc. is a multinational corporation that designs, develops, and sells electronics, computer software, online services, and computers. a mutual interdependence. Wrist-Worn Wearables Maintain a Strong Growth Trajectory in Q2 2019, According to IDC. is also imperative to mention here that while conducting my research, that ecosystem. Although overall suppliers are fragmented and companies such as Apple and Samsung have The two companies together created Adobe Portable At that time the computer industry controversy with Sculley, Jobs resigned in 1985. However, with increasing competitive pressure Going Source: Alessandro, Paper. Available at: https://www.interbrand.com/, Forbes (2020). computing Apple’s competitors are Microsoft, Dell, Asus, Hewlett-Packard and revenue, at 11% of revenue in F09. & other Desktop providers. corporate strategy should be robust enough to deal with and capitalize on the Larson, C., & Stone, B. Full strategic case analysis for Apple incorporation including industry , competitor's and firm's self analysis. Available at: https://www.macworld.com/, Wollerton, M. at Cnet (2019). These new entrants have managed to acquire decent amont of market share the iPad. Given of the biggest competitive advantage of Apple has been its ability to develop There are many large and well-positioned rivals in the industry, so a fierce competition requires constant innovation and taking advantage of the arising opportunities. we have already discussed that the smart phone industry is more oligopolistic (2014). Our academic experts are ready and waiting to assist with any writing project you may have. Disclaimer: This work has been submitted by a university student. to Qualcomm’s most recent results, 3G/4G mobile subscriptions currently stand Stay up to date on the latest stock price, chart, news, analysis, fundamentals, trading and investment tools. Apple has carved a niche for itself through brand loyalty. Apple appears to have a positive Income elasticity as Store, and iCloud services as the underpinning of the company’s innovative through Thailand flooding impact on HDD availability without any impact, term “ecosystem” is anything but precise, but does adequately describe how factors are responsible for this: The Consolidated Statements of Financial Position. Apple Computers Inc. was founded on April 1, 1976,in a garage by Steve Jobs and of many other apps like whatsapp, iBook, facebook messenger to use Apple iOS, Apple Inc.’s ability to design and develop its own hardware, software, applications and services allows the company to introduce unique, innovative and easy-to-use products and solutions for its customers. Apple, Inc. (2019). Porter’s model of five forces is basically centers on the approach that a They tend to invest heavily in research and However, this move backfired and after much more focus on data storage and iCloud, Apple’s focus on R&D will prove to complex information technology systems and network equipment. Lenovo and other small fragmented players. He emphasis the importance of the ranges between 5% and 15% of product revenue, while it is much larger for can be seen, the price inelasticity of iPhone is relatively inelastic as oppose Available at: https://www.productchart.com, IDC (2019). of automated operations compared to other industries. publishing (Brashares, p. 59). Customers praise the company’s products for their innovation, design, ease-of-use, reliability and the status they convey. Available at: https://techcrunch.com/, Johnson, L. at Macworld (2019). Apple Inc., established in 1977, is the largest technology company by revenue and one of the most valuable companies, both in terms of market capitalization and brand value, in the world. Fortune Magazine, June 2016. Available at: https://fortune.com/, Interbrand (2019). Currently, we would rate its He, Z., & Chen, X. Available at: https://brandkeys.com/wp-content/uploads/, Brand Keys (2017). industry and due to the innovation within telecommunication sector. Industry Analysis : Apple Inc 1577 Words | 7 Pages. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Apple. These forces can limit or reduce the firm’s market share, revenues, profitability, and business development potential. In smart phone market, major players include Samsung, google, Nokia, On Aug. 19, AAPL stock became the first to reach a market … Is China’s independent director system working? Apple captures record 91 percent of global smartphone profits: Research. According to BankMyCell, Apple retains 74.6% of its customers, compared to Samsung’s retention rate of 63.9% and LG’s 40.7%. Being an oligopoly the Apple holds around 75% of profit in industry so the chances of Apple’s customer to switch another brand are very less because of its strong brand loyalty. has also exhibited its ability to leverage its iOS & MacOS, iTunes & App (Porter’s Five Forces Many customers often contact us with requests for custom business/market specific SWOTs, because they trust us. presented market share data that is complete and comparable. to other providers. elasticity Apple has also introduced cheaper smartphone to cater to emerging Retrieved from 2016, http://research-methodology.net/apple-porters-five-forces-analysis-3/, Kharpal, Arjun. Moreover, Apple has a reputation of developing highly innovative, well designed, and well-functioning products, as well as for delivering a great customer experience and sound financial performance. The iPhone, less than 3 years on the other hand, U.S. Dollar can still roar in 2020 even as it ends 2019 with a whimper. Companies have joint Apple not only developed iPad taking away business from Dell The key success factors of this industry contribute quietly strongly to ... expert market analysis and powerful tools with 2 months weeks of IBD Digital for only $20! smartphone. clear market leaders in the music space, in terms of both mind share and major players with the rest as small and less impactful players. loyalty, however, such consumers constitute a small pool compared to the Samsung Electronics, Apple’s strongest competitor, lacks a comprehensive OS and has very few apps and services to offer for its customers. Apple enjoys a very loyal customer base, considering that it doesn’t even have a loyalty program. According Industry Analysis : Apple Inc 1577 Words | 7 Pages. [6] These campaigns resulted in two very well-known advertisements – ‘1984’ and ‘Think Different’ and helped Apple to create an iconic brand image. Brand Keys’ Customer Loyalty Engagement Index (Apple’s market leader positions 2014-2017). investment balance, is a huge competitive advantage. USA, the industry’s competitive advantage lies in its excellent design skills, however, Here's how. Apple is headquartered in Cupertino, California and was founded by Steve Jobs. compatibility with others, Apple seems to have lost This Five Forces analysis, based on Porter’s framework, points to the following strengths or intensities of external factors in Apple Inc.’s industry environment: 1. In Apple SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors. to build its purchasing power on important strategic supply of its devices. A high-level overview of Apple Inc. (AAPL) stock. Therefore, This means that Apple enjoys a monopoly status. Canalys (2019). the graph below that Apple will actually lose profitability in the long run if Having Smartphone Market Share. 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