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Environment assessment of Apple Inc Essay Example

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Environment assessment of Apple Inc

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Environment assessment of Apple Inc. Apple has adopted differentiation strategy in order to stay ahead of its competitors. Then again, given the economic scenario, Apple products are not accessible to all consumers in terms of cost. One of the major economic aspects of Apple’s external environment is that products offered are comparatively expensive, which presents a great opportunity for its competitors such as, Samsung, Nokia and Google (Apple Inc.Competition in any industry can be most appropriately described using Porter’s five force model. In the current paper, the competitive strengths of Apple have been explained using the same. The main components of the model are:In context of Apple, the paper will mainly focus on ‘threat of substitute products’ and ‘bargaining power of buyers’, along with strategies that can be applied in order to improve its strategic position with respect to these components of the competitive model.

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.

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