Managment Information System: Apple Company Analysis

Apple’s Analysis
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Apple’s Analysis
Apple is among the top innovative companies in the world. It has made great achievements in the mobile, desktop, and laptop technology. Apple's products have the highest level of technology and are always admired by its customers due to its innovative nature and ideas. However, the company faces stiff competition from other companies in the industry which have sought to produce cheap but innovative products that are customized to meet the needs of the customers. Therefore, this paper is aimed at analyzing Apple Inc. Based on Porter's five forces to establish how best it can survive in the market.
Apple is in stiff competition with other existing competitors such as Huawei, Samsung, and Nokia, which have also made some great strides in innovative technology. Due to a large number of competitors in the market, the profits will tend to be low. This makes it hard for any company to control the market share since it will focus on customer loyalty to maintain them. However, due to the slow growth of the industry, competition will become more intense due to market saturation. This is possible due to the various products from other competitors which are cheap and have been tailored to meet customers' needs. Apple's products are easily differentiated from those of its competitors due to its differentiation strategy making them easier for substitution. Therefore, Apple faces the threat of substitutes since the customers in the market can go for cheap products from their competitors at low prices and are attractive to them. This puts Apple in a dilemma of deciding whether they should comply with the market trends or not (Hassan, 2013).
Complying with the demands of the customers, Apple risks losing part of the cost of production or lose its market share by sticking to its set prices (Woellener, 2013). The company also has another dilemma of dealing with the bargaining power of the customers because they are capable of demanding lower prices which will result in low revenue to the organization. This will make it impossible for it to break even in the long run. This is mostly experienced when there are few customers for the products (Hassan, 2013).
Additionally, Apple is faced with another dilemma of the bargaining power of suppliers who also have the ability to decide to sell their raw materials to their customers at higher prices leading to an increase in prices of the products that the company will have to sell to meet its production cost. This circumstance is hard for the company since it has certain objectives that it wants to achieve. It may be expensive to start producing its products using raw materials from new suppliers leaving the company with one choice of sticking to the same suppliers (Woellener, 2013).
The threat of new entrants is another challenge that Apple is facing. This has a direct effect on the company since it increases the number of competitors in the market. New entrants may enter the market and attract most of the customers to its products since they may...