Apple Inc. in the Retailing of Consumer Electronics

Today Apple takes one of the leading positions in the industry among such developed computer companies as Sony, ACER, Samsung, HP, Lenovo, ASUS, and some others which are popular with the customers of the United Kingdom (Harps 2002).

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This market is rather competitive and requires following the tendencies in the progress of our modern society. That is why a strategic group map which locates the position of Apple within the retail industry for electronics in the United Kingdom should be built with using of the results of analyzing such important factors as the quality of the products, design of the products of the company, their innovative value and their availability for customers (Huzefa 2009). Moreover, it is necessary to take into consideration the level of the development of these factors for the company (Huff 1990).

Apple is a quickly developed brand that focuses on improving the peculiarities of the company’s support of the customers and on providing an effective price policy (Useem 2007). These aspects allow the company to develop its technologies and the manufacturing sphere efficiently (Dhaliwal 2009).

The peculiarities of the development of Apple and its place within the market according to the competitive conditions of the company can be analyzed with the help of Porter’s Five Forces model (Exploring Corporate Strategy 2005).

The intensity of competitive rivalry. The level of the intensity of competitive rivalry in the industry can be considered as high because there are many competitors for Apple which are presented by the companies which produce computers and associated electronic products. These companies are Sony, ACER, Samsung, HP, and ASUS (Huzefa 2009).

The threat of substitute products. The level of the threat of substitute products can be considered as rather low because today Apple focuses on producing a number of products based on the progress in the computer technologies which are rather innovative and can satisfy the customers’ demand (Huff 1990).

The threat of the entry of new competitors. The level of the threat of the entry of new competitors in the industry depends on the changes in the price system of the company. However, in spite of the fact Apple’s products can be considered as rather expensive, customers prefer the electronic devices produced by the company (Farrell 2009).

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The bargaining power of customers. One of the most significant advantages of the company is the fact that customers all over the world prefer to buy the products of Apple because they differ from the substitutes in the level of quality, and they are quite unique. The company insists on using a number of innovations in producing the devices that is why the level of the bargaining power of customers can be considered as high (Harps 2002).

The bargaining power of suppliers. The level of bargaining power of suppliers can be considered as high because today Apple takes one of the leading positions in the market of the industry and does not depend much on the suppliers’ factor. Moreover, the company has the opportunity to provide some of the necessary products for its needs (Williamson 1991).

The analysis of the potential of Apple in the market of the industry according to Porter’s Five Forces model allows studying the peculiarities of the attractiveness of the company for possible investing in it. Apple is a company with a high potential for successful competitiveness within the market because of its openness to the effective production of different kinds of modern electronic devices.

Moreover, the company realizes an efficient price policy which helps to control the level of the customers’ ability to buy the products of the brand. In spite of the fact of possible price wars within the market of the industry, Apple follows its strategies for the development and control of the market (Bain 1959; Deutschman 2000).

One of the most important advantages of the company is its high-quality standards (Electronic Industry Citizenship Coalition 2009). Moreover, the independent powerful position of Apple within the market and following a skimming strategy help the company to take the leading position among the other companies of the industry and be attractive for investing because of Apple’s high level of potential for further economic development (Bhide 1986; Mintzberg 1990; Swanson 2009).

It is also necessary to analyze the relationship between Apple’s strategic group and its organizational focus. This relationship can be considered as rather obvious because the factors on which the strategic group is based affect the organizational focus of the company (Huzefa 2009; Whittington 2001). The progress of Apple depends on the following of the principles of simplicity, high quality, contemporary design, the high level of support of the customers, the high level of innovating in producing, an effective price policy, and vertical integration (Harps 2002). Furthermore, the company’s domination within the market is conditioned by the high level of loyalty of the company and the development of the strategies of improving the marketing technologies (Harps 2002).

However, the quickly developed market of the industry can be attractive for a number of new entrants and for the development of the economic possibilities of the rivals in the industry. That is why there can be established definite barriers that can prevent rivals from entering Apple’s competitive domain.

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One of the most effective barriers is the possibility to recognize the brand among many others. The company takes the leading position within the market of the industry and there worked out many strategies for developing and increasing its economic and material resources (Farrell 2009).

That is why a great number of manufacturing resources can decrease the level of the impact of the suppliers as well as the threat of new entrants in the industry because the rivals must have great financial resources for rising in the industry (Useem 2007).

Furthermore, Apple is constantly developing of the channels of distribution of the products within the market. This fact increases the competitive potential of the company and decreases the competitive potential of possible rivals and new entrants into the industry. One more significant advantage of the company which can be considered as the barrier for the competitors is the constant investigations in the growth of the innovations and numerous experiments for improving of the products (Useem 2007).

Moreover, the results of the investigations in the company can be successfully used for the process of the integration of innovative technologies and different products for the entertainment. These factors contribute to the development of the company in the direction of improving of the possibilities of the products and their effective transforming according to the modern tendencies in the world of computer systems and electronic devices

As a result, Apple preserves its leading position within the quickly developed market because of its innovations in producing of electronic devices and present-day value propositions. The policy of the company is directed to the customers’ demand that is why Apple develops the system of the customers’ support and works out an effective price policy.

Appendix 1

Apple Inc. in the Retailing of Consumer Electronics

References

Bain, JS, 1959, Industrial organization, Joe S Bain Wiley, New York.

Bhide, A , 1986, Hustle as strategy, Harvard Business Review. pp. 59-65

Deutschman, A, 2000. The once and future Steve Jobs. Web.

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Dhaliwal, A, 2009. Apple’s Q4 results beat that analysts estimate; quarterly profit rises to $1.67 billion. Web.

Electronic Industry Citizenship Coalition. Electronic Industry Code of Conduct. 2009. Web.

Exploring Corporate Strategy: Text & Cases, 2005. UK: Prentice Hall.

Farrell, N, 2009, Amd takes intel market share. Web.

Harps, LH, 2002, Materials Handling Technology: Toy or Tool? Web.

Huff, AS (ed), 1990, Mapping strategic thought. Chinchester, John Wiley & Son.

Huzefa, AN, 2009, A Strategic Analysis of Apple Corporation. Web.

Mintzberg, H, 1990, Strategy formation: schools of thought in JW Fredrickson (ed) Perspectives on Strategic Management New York: Harper Business, pp. 105-236.

Swanson, B, 2009, Net Neutrality’s Impact on Internet Innovation. Web.

Useem, J, 2007, Apple: America’s best retailer. Web.

Whittington, R, 2001, What is Strategy – and does it matter’, Thomson Learning, UK.

Williamson, OE, 1991, Strategizing, economizing, and economic organization, Strategic Management Journal, 12: 75-94.

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