Five Forces of Porter Apple

Topics: Personal computer, Dell, Microprocessor Pages: 3 (757 words) Published: September 27, 2011
How sustainable is Apple’s competitive position in PCs?
Apple is a successful company today but it is also a relatively old firm in the personal computer industry with a complex life. This organization´s history has been already discussed but this section will include a brief description of the stages of the company through time focused on the personal computer´s (PC´s) area. Apple has been in the top of this industry more than one time, but it has been nearly broken as well. At the end of the seventies Apple was a leader on the personal computer market with its easy-to-use computer called Apple II. Then thanks to the IBM and Microsoft entrance in 1981 Apple´s net income fell 62% between this year and 1984. By 1990 Apple had 1 billion in cash and was the most profitable firm in the PC world industry. In 2009 Apple became the fourth-largest PC vendor in the United States with an 8% share of the market, thanks to technological innovations and a new retail strategy. The competitive position that Apple has right now is complex and it depends on various factors and variables. First we will analyze the PC industry related to Apple to determine how this competitive environment affects the competence in our evaluated firm. Then comes the internal analysis to determine if Apple has or not the tools to be considered as a firm with a competitive advantage above its rivals. Porter´s Five Forces Analysis:

New Entrants’ Threat:
* Because of standardization of PC components and thanks to the economies of scale, the prices came down significantly in this industry, this represents a great barrier to new entrants who has to decide to incur or not in the costs of entrance. * The PC market is divided and occupied by big firms like Hewett Packard, Dell, Apple, Acer, Lenovo, etc. which brings a great brand identity and also a barrier to entrance. The threat of new entrance in this industry is low.

Threat of suppliers:
* Apple´s personal computers have Intel...
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