Apple in case study
Question 1/ Analyze the microenvironment and drivers of changes of the PC industry. What are the opportunities and threats facing Apple, Inc. (PESTEL analysis, “Uncertainty/Impact” drivers’ analysis and Scenario Planning)? 20% :
a) Opportunities and threats facing Apple, Inc.
* Entrance in new markets;
* High levels of demand of Apple’s products (IPhone, IPad);
* Damages from competitors who doesn’t respect Apple’s patent;
* Exploitation of new advertising methods.
* High levels of competitiveness;
* Dependence on specific suppliers;
* Android system Vs. iOS;
* Levels of taxes.
Modern social life style influences positively the business of Apple Inc.
People are growing up with technologies. They need a computer for everything. Even a student could not go to school without a computer because homework/tasks are given through the Internet. This improvement of Internet has a big influence on Apple, Inc.. They always have to innovate and to invest a lot in their research and product departments to stay on the top of the market.
New U.S. laws and regulations are making manufacturers responsible for recycling, and Apple Inc. introduces domestic recycling facilities instead of shipping waste overseas. Moreover, Apple Inc. has enhanced their expectation about green production. Furthermore, Apple operates in a way that conserves the environment and protects the health and safety of their employees (Apple Annual Report, 2011).
When you want to launch a new product, you have to respect the legal regulations such as the labeling, copyright, patents/intellectual property law, the consumer protection, etc. These regulations influence the way Apple produce its products and sells them.
c) Scenario and uncertainty
The external influences can be more or less important. We don’t know yet the new progress of technology. Take the example Apple reaches a peak with technologies; maybe apple products will be less interesting. Or about the competitors, some can occur as Apple did before. Apple doesn’t know if it will stay on the top of technologies. Apple is also highly dependent on chips.
The level of uncertainty for Apple Inc. could be the 3rd one with a range of possible future outcome.
It is using the scenario planning to identify a range of potential outcome. It is doing its best to keep being the best even if outcomes happen. Apple is always regarding about its competitor to compete in case one appears quickly in the market and try to becoming the leader.
Question 2/Analyze PC industry. Why Apple struggle historically in PC industry. Identify Porter’s industry analysis forces and how each force pertains to Apple, Inc. Identify the PC Strategic Group Map and Apple’s strategic group position. Is this position favorable or problematic for Apple ? 20% :
The Porter five forces are intensity of competitive rivalry, bargaining power of customers, bargaining power of suppliers, threat of new entrants and threat of substitute products.
The Five Forces model of Porter is intended for analyzing the competition among companies.
Apple is the market leader and other competitors whose mission is to steal market share, trying to innovate and increase the quality of their products. But when competitors create a new product, Apple returns to create something new or improve something that already exists and is on top again.
Some of Apple's competitors are:
- Small stylish MP3 players (Samsung, Sony)
- Online music stores similar to...