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Environment assessment of Apple Inc

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Apple has adopted differentiation strategy in order to stay ahead of its competitors. Ten again, gven the economic scenario, Aple products are not accessible to all consumers in terms of cost. Oe of the major economic aspects of Apple’s external environment is that products offered are comparatively expensive, wich presents a great opportunity for its competitors such as, Smsung, Nkia and Google (Apple Inc. Cmpetition in any industry can be most appropriately described using Porter’s five force model. I the current paper, te competitive strengths of Apple have using the same.

Te main components of the model are: I context of Apple, te paper will mainly focus on ‘threat of substitute products’ and ‘bargaining power of buyers’, aong with strategies that can be applied in order to improve its strategic position with respect to these components of the competitive model. Acording to Porter, te threat of substitutes shapes competition within an industry and unless there is demand for a particular product, sbstitutes may not have any specific impact (Grundy, 2006). I was observed that although Apple is favored company as a retail vendor of tablets, is market shares have gone down significantly due to launch of low cost tablets by the competitors such as, Smsung, Aus and Blackberry.

I addition, cnsumers are shifting towards budget phones with similar software and outlook owing to their declining disposable income (The Wall Street Journal, 2014). Peviously, Aple faced low competition level as that of innovation was low; bt presently, amost all companies are competing at the same level in terms of software and hardware superiority. Tere is little differentiation Apple can incorporate regarding software, bt it can utilize the same strategy that the competitors are applying for hardware.

Aple needs to upgrade the hardware features offered within a specific price range; i other words, te consumers must be provided with better product related services without increasing the cost. Acording to the Porter’s model, te bargaining power of buyers is determined by the concentration of consumers in an industry, poduct differentiation, band identity and price sensitivity (Miller, 1988). Aple products are mainly purchased by individuals within the group 15

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