Choose an organization that interests you. Using unit concepts write a paper detailing the organization's competitive environment and what you perceive to be its competitive advantage. Assignment Requirements: 800-1000 words and Minimum of two references (cited)
The Organization we will choose is Apple Inc.
we will analyze the competitive environment using Porter's Framework
1. Competitive rivalry : Although the market in which Apple operates is very competitive - Computers , Smartphone , iPad (Tablets ) & Music (ipod) with large number of players , but Apple has been a leading brand and continues to do so despite strong competition . Apple almost has a cult following with all their products being Iconic . hence even though the field is very competitive , because of very loyal following Apple really has few rivals and people who start using Apple continue doing so for years .Hence Apple dominates the market with huge profits and it keeps on getting stronger .
2.Supplier Power : Most of the critical component like Software is Apple proprietary , hence Supplier power is not very strong . Contrast this with other vendors let's say Dell who buy software from Microsoft and so on . The hardware is more like a commodity ( e.g chips , screen , battery etc.) hence Supplier power is weak , rendering Apple in a strong position.
3. Buyer Power : Weak buyer power as the Apple brand is very strong and has a cult following . buyers wait for the new product release unlike other companies . I phone customers wait overnight outside the stores to buy a new phone. And the number of buyers are not limited - it operates in retail environment with their ever increasing fan base . Apple charges a premium always and they get it .
4. Threat of substitution : With such a large fan base and utility products the threat at least now is very minimal . Apple users swear by the product (especially design studios who use Apple exclusively because of the software ) .
5. Threat of new entry : With such a following and world beating company , competition hardly matters for Apple as of now. Companies have come and gone , but Apple has been growing stronger and stronger just like Microsoft . of course they keep on delivering with their product superiority , slick marketing and unbeatable quality and innovative business models like Apple Music , AppleTV etc.
Apple's competitive advantage : Its superior & proprietary software ( IOS ) which is very secure and immune to virus attacks , quality , innovative business model , aesthetic design , simplicity of use , portability and connectivity amongst Apple devices make Apple users very brand loyal - so much that they pay a premium for it .
Choose an organization that interests you. Using unit concepts write a paper detailing the organization's competitive...
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