“ Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and internet offerings.”
One of the oldest hardware manufacturers.
Control over the product.
High quality product.
Easy to carry products
Huge consumer base loyal to apple
Focusing on internal engg. more than marketing
Consumer faced problems with faulty batteries
Had difficulties on some of its products’ quality control
Not issued dividends
Less expensive new product lines with quality.
Product line is functional and attractive.
Flexibility to its users.
ipods are able to communicate.
New car models with ipod connectivity.
Pressure from competitors.
Technology changes at a rapid rate.
Forced to develop new products.
PORTER’S FIVE FORCES MODEL
Existing rivalry in the industry Substitutes Supplier New Entrants Customer Threat of new entrants Bargaining power of buyers Substitute products & services Bargaining power of the suppliers
Windows OS and media player for playing music and video ( Microsoft)
Competition to Mac OS X (Linux)
Alternate sources of computer hardware (Dell, HP, Lenovo)
Small stylish MP3 players (Creative, Samsung)
Online music stores similar to itunes stores (Napster)
THREAT OF NEW ENTRANTS
Streaming audio and video with v-cast (Verizon)
On demand online services (similar to i-tunes)
New entrants with disruptive technology (The “next google”)
BARGAINING POWER OF SUPPLIERS
Suppliers of processors and computer memory (Motorola, IBM, Intel)
Strategic alliance/supplier of Mac (Microsoft)
Supplier of tv and movies (Disney, ABC, Fox, Sony)
Sources of music (BMG, Sony, Warner, Universal)
BARGAINING POWER OF CUSTOMERS
Customers share music using peer-to-peer networks without paying for music (Ares, Limewire)
Retailers may pressure for lower prices or better terms (Distributors)
Consumers/Businesses may reduce spending on computers if they fear economic downturns (Consumer Attitudes & Behaviors)
Consumer Refresh Cycles
THREAT FROM SUBSTITUTES
Satellite radio for music (XM, Sirius)
Entertainment media, media and music (XBOX, PS2)
Alternative means to acquire music (Music CDs, DVDs)
Alternative sources for videos (Cable, Broadcast, Theatres)
Lowering the cost of products and maintaining the same quality standards