According to Porter, the threat of substitutes shapes competition within an industry and unless there is demand for a particular product, substitutes may not have any specific impact (Grundy, 2006). It was observed that although Apple is the most favored company as a retail vendor of tablets, its market shares have gone down significantly due to launch of low cost tablets by the competitors such as, Samsung, Asus and Blackberry. In addition, consumers are shifting towards budget phones with similar software and outlook owing to their declining disposable income (The Wall Street Journal, 2014).Previously, Apple faced low competition level as that of innovation was low; but presently, almost all companies are competing at the same level in terms of software and hardware superiority. There is little product differentiation that Apple can incorporate regarding software, but it can utilize the same strategy that the competitors are applying for hardware. Apple needs to upgrade the hardware features offered within a specific price range; in other words, the consumers must be provided with better product related services without increasing the cost.According to the Porter’s model, the bargaining power of buyers is determined by the concentration of consumers in an industry, product differentiation, brand identity and price sensitivity (Miller, 1988). Apple products are mainly purchased by individuals within the age group 15 to. Environment assessment of Apple Inc.
Please type your essay title, choose your document type, enter your email and we send you essay samples