Apple Porters Five Forces 2018
Jonathan. K. Kush is the lead business writer at 123 Writing. He holds a BA (Hons) degree in Business Administration from the University of Brighton, UK. As a Market Research Analyst by profession, Jonathan has nearly a decades experience in market research and business analysis. His passion includes studying markets and industry trends to understand their impact on company strategy, performance and ways firms can mitigate their environment to outcompete rivals.
Latest posts by Jonathan Kush (see all)
Apple is a technology company majorly dealing in the design, manufacture and marketing of smartphones, tablets and personal computers. The global smartphone market has become highly fragmented into high-end and low-end players. Apple being a high-end market player faces competition primarily from Samsung. In 2018, Apples share of the global smartphone industry had fallen to third, behind Huawei and leader Samsung. It is the first time Apple is not in the top 2 global smartphone firms in the world since 2011. Apple has also lost market share in China, falling from top spot to 4th as it battles low cost Chinese rivals.
Using Porters five forces, the report examines how Porters five forces of competition have shaped the global smartphone industry, leading to the commoditization of smartphones at the low end of the market and the counter strategies Apple has devised in the battle against this increased commoditization and powerful low cost rivals.
HARVARD
Jonathan, K. Kush (2019) "Apple Porters Five Forces 2018" 123 Writing [Online] at https://www.123writing.com/sample/apple-porters-five-forces-2018
Apple Business STRATEGY Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Use Porters five forces model to analyse an industry on the basis of the five competitive forces.
- Analyse the global smartphone industry and how the five forces have affected Apple and rival firms and the impact on industry structure, attractiveness, and profitability.
- Understand how Apple has managed to defend against intense competition and the strategies it uses to create 'blue oceans' that are defensible, helping it capture market share and maintain competitive advantage.
1.0 INTRODUCTION
In August 2018, Apple became the first company to reach a market capitalization of US$1trillion, beating old rivals such as Google and Microsoft. The Cupertino based tech giant is known for manufacturing a wide range of iconic consumer electronics such as the iPhone, iPad, and computer software like Mac OS, iOS and online services like Apple Music. Founded in 1976 by Steve Jobs, Steve Wozniak and Ron Wayne (Dormehl 2018), Apple now operates 492 stores across 19 countries worldwide (Dunn 2017).
In 2017, Apple made annual revenue totaling $229.23billion up from $215.64billion in 2016 (Richter 2018) with a profit of $48.35billion up from $45.69billion in 2016 (Annual Report and Form 10K 2017). Apple’s three major markets include USA, UK and China with a market share of 45%, 37% and 17.4% market share respectively ahead of major competitor, Samsung with market share of 29.5% in USA, 35% in UK and 2.2% in China.
In the following section, we examine how Porters five forces of competition have shaped the global smartphone industry, leading to the commoditization of smartphones at the low end of the market and the counter strategies Apple has devised in the battle against this increased commoditization and powerful low cost rivals.
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Get unlimited access to a robust database of premium business strategy case studies including more than 5,770 fully answered sample strategy frameworks and tools such as pestle, value chain, value matrix, porters five forces, Ansoff’s matrix, etc., authoritatively written and tailored for student revision, assignment preparation and transformative business research. Our strategy case studies are especially suited for university students wishing to apply strategic frameworks to real-world situations, company cases or simulations. All our strategy case studies come with teaching notes and learning outcomes, making them effective as coursework revision, and essay study help tools.
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Apple Porters Five Forces 2018
Jonathan. K. Kush is the lead business writer at 123 Writing. He holds a BA (Hons) degree in Business Administration from the University of Brighton, UK. As a Market Research Analyst by profession, Jonathan has nearly a decades experience in market research and business analysis. His passion includes studying markets and industry trends to understand their impact on company strategy, performance and ways firms can mitigate their environment to outcompete rivals.
Latest posts by Jonathan Kush (see all)
Apple is a technology company majorly dealing in the design, manufacture and marketing of smartphones, tablets and personal computers. The global smartphone market has become highly fragmented into high-end and low-end players. Apple being a high-end market player faces competition primarily from Samsung. In 2018, Apples share of the global smartphone industry had fallen to third, behind Huawei and leader Samsung. It is the first time Apple is not in the top 2 global smartphone firms in the world since 2011. Apple has also lost market share in China, falling from top spot to 4th as it battles low cost Chinese rivals.
Using Porters five forces, the report examines how Porters five forces of competition have shaped the global smartphone industry, leading to the commoditization of smartphones at the low end of the market and the counter strategies Apple has devised in the battle against this increased commoditization and powerful low cost rivals.
HARVARD
Jonathan, K. Kush (2019) "Apple Porters Five Forces 2018" 123 Writing [Online] at https://www.123writing.com/sample/apple-porters-five-forces-2018
Apple Business Strategy Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Use Porter's five forces model to analyze an industry on the basis of the five competitive forces.
- Analyze the global smartphone industry and how the five forces have affected Apple and rival firms and the impact on industry structure, attractiveness, and profitability.
- Understand how Apple has managed to defend against intense competition and the strategies it uses to create 'blue oceans' that are defensible, helping it capture market share and maintain competitive advantage.
1.0 INTRODUCTION
In August 2018, Apple became the first company to reach a market capitalization of US$ 1 trillion, beating old rivals such as Google and Microsoft. The Cupertino-based tech giant is known for manufacturing a wide range of iconic consumer electronics such as the iPhone, iPad, computer software like Mac OS, and iOS, and online services like Apple Music. Founded in 1976 by Steve Jobs, Steve Wozniak, and Ron Wayne (Dormehl 2018), Apple now operates 492 stores across 19 countries worldwide (Dunn 2017).
In 2017, Apple made annual revenue totaling $229.23billion up from $215.64billion in 2016 (Richter 2018) with a profit of $48.35billion up from $45.69billion in 2016 (Annual Report and Form 10K 2017). Apple’s three major markets include USA, UK, and China with a market share of 45%, 37%, and 17.4% market share respectively ahead of major competitors, Samsung with a market share of 29.5% in the USA, 35% in the UK and 2.2% in China.
In the following section, we examine how Porter's five forces of competition have shaped the global smartphone industry, leading to the commoditization of smartphones at the low end of the market and the counter strategies Apple has devised in the battle against this increased commoditization and powerful low-cost rivals.
Services We are Offering
We are more than a free study and revision tool.
We also provide
on demand research and custom writing services.
Make writing your assignment paper as easy as 123!
123 Writing is the #1 exam revision and assignment study platform in the UK.
Get unlimited access to answered student essays, assignments, past exam questions and sample coursework written by qualified academic writers & tutors.
Our Standard subscription typically retails for £299.88 a year.
Today, you can join at 80% discount.
Here’s a full breakdown of everything you get as a Standard or Premium subscriber...
» Get access to our database of more than 5,770 answered premium strategy case studies
Get unlimited access to a robust database of premium business strategy case studies including more than 5,770 fully answered sample strategy frameworks and tools such as pestle, value chain, value matrix, porters five forces, Ansoff’s matrix, etc., authoritatively written and tailored for student revision, assignment preparation and transformative business research. Our strategy case studies are especially suited for university students wishing to apply strategic frameworks to real-world situations, company cases or simulations. All our strategy case studies come with teaching notes and learning outcomes, making them effective as coursework revision, and essay study help tools.
» Free access to past exam & assignment answers
Revise and prepare for exams and coursework with our fully answered exam notes and sample assignment papers. Furthermore, get quick on-demand answers to past exam question and assignment questions from our writers. Exam answer notes come with personalized lesson plans, and detailed study notes complete with detailed explanations of each answer, for maximum exam revision and assignment preparation. This tool is perfect for readers struggling with exam preparation & assignment study.
» Get extra assignment related help from our writers & tutors
Achieve high grades with a little extra assignment related support. Get extra help with your essays, assignments and general coursework, from our knowledgeable writers and tutors who will provide extra assistance when required for all academic related tasks including proofreading, grammar editing & correction, citations, referencing, etc. at no extra cost for standard and premium subscribers. All our standard and premium subscribers receive free proofreading services, which will include a check for punctuation, grammar, sentence formation, typographical errors, formatting, errors and other consistency issues (broadly).
» Get free assignment & essay writing help worth up to 7K words
Commission an on-demand essay, or assignment title from our knowledgeable writers and tutors on any subject matter. Get up to 7,000* words in on-demand custom assignment help from our writers who can assist with difficult topic in classical business literature. (* 7,000 free word credit exclusive to premium members).
» Fast & speedy answers to on-demand case solutions & assignment questions
Make use of your available free word credit (up to *7,000words) to commission on-demand custom case solutions, case study assignments and receive fast & speedy personalised answers. Receive timely and fast plagiarism-free answers to assignment questions or case solutions in as little as 1-2 business working days. Topics include Strategic Management, Marketing, Business Management, Economics, Operations Management, Organization Studies, International Business & Management, Human Resource Management and more. (* Exclusive to premium members).
» Get exclusive Q&A sessions with our subject matter writers
Ask our qualified, vetted and knowledgeable writers up to *12 essay, assignment and coursework related questions annually and receive accurate, clear, and detailed answers including step-by-step explanations briefs that are easy to follow. (*Exclusive to premium members).
» Free access to test bank questions & answers, study notes and practice quizzes
Test your knowledge on any subject with our quick quizzes and test banks for maximum retention after revision and studying. Test Bank contains questions in a variety of formats including multiple choice, true/false, short answer, and essay questions.
» Free access to video tutorials & study packs
Get free access to exclusive video tutorials to common subject topics. Our subject matter video tutorials, study notes and study packs have been created to help students learn and understand basic course module materials, as well as prepare students for their coursework assignment questions, essays and exams. Our video tutorials, study notes and study packs can be organized by topic, textbook or Question &Answer.
» Access to textbook chapter reviews and answer solutions
Get access to chapter reviews of popular business books, broken down in easy-to-understand simple concepts with simplified English. If English is not your first language, this service will make revising for essay assignments and exams as easy as 123 (Exclusive to premium members).
