Porters five forces model of apple corporation

Document Type:Essay

Subject Area:Management

Document 1

Apple has faced competitive rivalry within the global technological market. In Apple's case, the organisation has faced competition from LG and Samsung which have developed aggressive marketing strategies (Larson and Victor 703). The organisation has been affected by imitation competitive strategies and a lack of product differentiation. Since electronic products in the market are, similar Apple often has to face stiff competition from Android devices (Shea 33). The organisation has also faced cloud storage competition from different service providers. In the same manner, Apple Corporation has been affected by the threat of substitutes. In the competitive market, the organisation operates in a market with several substitutes provided by companies such as LG and Samsung. Instead of people using apple iPhones to take photos consumers prefer digital cameras (Shea 33).

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However, the organisation has had a competitive edge in producing a premium product that is attractive to middle income earners and high-income earners. The threat of new entrants into the market is a moderate force. The organisation has succeeded by focusing on improving product quality as a way of ensuring that innovative strategies and brand equity is optimised in the organisation. Apple Corporation has succeeded by increasing its investments in research and development to ensure that it is a market leader in innovatively developing its products within the industry. Investing in the research and development department has enabled Apple Corporation to focus on premium markets and to ensure that its products conveniently assist their clientele (Larson and Victor 709). Additionally, the organisation has revolutionized several technologies such as the touch screen sensor, the iPod and iTunes which has revolutionized the way that consumers listen to music.

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As a market leader, the organisation has developed brainstorming strategies to innovatively integrate consumer feedback in product development (O'Grady 45). Effectively, the organisation has ensured it that packages its product in a way that propagates simplicity and support functions that meet consumer needs. Apple has been able to meet consumer needs by providing support services after product purchases. Value Chain Analysis of Apple Corporation Primary activities Inbound logistics in Apple Corporation are affected by the supply chain in the company. The company uses several options to source its materials from service providers. Most of the suppliers of the organisation are located in Japan and China. Apple is a popular brand which focuses on marketing and sales (Teece et al. The organisation has an aggressive marketing strategy which ensures that all new product releases are highlighted by major media houses.

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The company also uses social media platforms such as Facebook to popularize its products. Apple has also been known to engage its clientele through captivating advertisements to propagate brand loyalty and to ensure that imagination and creativity is used in publicity processes. Apple provides a wide range of products and services. Firm infrastructure is critical in the organisation. The company has changed the cultural makeup of the organisation by introducing progressive human resource policies to meet employee needs. Technology Innovation of Apple Corporation Apple Corporation has been involved in technological innovation to improve its product visibility. Through its innovative strategies, Apple Corporation has been able to introduce the Apple watch, the iPhone and the iPad into the consumer market. The organisation has also been involved in the design of chips that power the devices of the phone company allowing them to be powerful (Teece et al.

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By developing its software systems, the organisation has ensured that it uses processes that are optimised to support their touch sensors, their systems, applications and their cameras. The innovative strategies of Apple support the organisation to record remarkable performance in artificial intelligence. The company has ensured that it focuses on its privacy driven product development in controlling the amount of information that is available on the cloud. To a large extent, the company has expanded beyond its traditional consumer market of electronics as it has ventured into the entertainment business through Apple TV and Apple music. In 2016, the organisation launched an open platform to ensure that developers are able to use the care kit to share medical information with caregivers. The innovative strategies employed by Apple have been focused on integrating disruptive technology to offer to ensure that the new mobile phones perform numerous functions.

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Competition in the Technological Market in the Next 10 Years Competition in the technological market is expected to intensify in the coming decade. Disruptive technological trends will affect the manner in which industries are transformed. It is expected that business owners and investors will finance organisations that divest their operations to capitalise on emerging trends in the product market. Artificial intelligence is expected to be a major platform of competition as technological firms which adopt artificial intelligence will have more attractive products (Prajogo 247).  Digital Wars: Apple, Google, Microsoft and the Battle for the Internet. London: KoganPage, 2014.   Foss, Nicolai J. , and Tina Saebi. "Fifteen years of research on business model innovation: how far have we come, and where should we go?. Prajogo, Daniel I.

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