1. External Environment
a) What Is the Purpose of Carrying out Porters Five Forces Analysis of an Industry?
Porters Five Forces model is aimed to scan, monitor, and obtain information about the rivals within a specific industry. It helps companies understand how external forces, such as the threat of new entrants or the threat of substitutes, may influence their activities and overall performance.
b) What Industry Is Apple in? Why?
Apple Inc. operates within the Telecommunications Equipment industry capturing Electronic Technology sector. It designs such electronic supplies as personal computers and portable digital music players, and is involved in mobile communication marketing.
c) Perform Porters Five Forces Analysis on the Industry in Which Apple Operates.
Competitive rivalry. Apple has set a strong position among the rival companies due to its differentiated products. However, as the market grows and new competitors appear, the company loses its market share, thus experiencing decline in its sales .
The threat of new entrants. The risk of competing with new players on the market is low in regards with Apple. One of the reasons is that the company is capable of presenting new services such as Apple TV. Another reason is that the new entrants would have to present products for the same consumer segment, namely high-income consumers, whom Apple presently satisfies.
The threat of substitution. This force is high-moderate as such players as Samsung and Google are ready to offer customers similar products to those that Apple provides .
Bargaining power of suppliers. This force is moderate as suppliers understand their power over manufacturing unique items for Apple products, and thus bargain for better conditions. However, while the company does not supply everything from one place, such power is moderate.
Bargaining power of customers. For Apple, it is low-primarily due to the uniqueness of products it offers. Apple is also a great marketer with its three-point marketing philosophy, which remains at the core of what and how the company creates and profits from the loyal customers .
d) What Is the Profit Potential of the Industry? Explain in Detail.
The profit potential for the telecommunications industry is enormous, what can be explained by the continuing growth of the U.S. telecommunications industry since 2016 and the increase in wireless carriers in stock up to 22%. Their 5G technology is designed to have more power across North American, Asian-Pacific, and Western European regions. Thus, the 5G network deployment is supposed to reach $247 billion globally by 2025 according to Zacks Equity Research.
2) Internal Analysis
a) Perform a Thorough VRIO Review of Apple at the Time of the Case. Where Is Apple Achieving Sustainable Competitive Advantage?
Value. According to Forbes Media LLC, the brand and supply chain management of Apple is the most valuable among the other companies in the world.
Rare. Apple innovative success of products is rare. However, the resources that Apple acquires may not be considered to be rare as the competitors are willing to enter the market and are ready to offer their own innovative resources.
Inimitability. Apple products are costly to imitate, therefore, it creates a permanent competitive advantage for the company.
Organization. Excellent leadership establishes efficient partnership, thus making the organization strong. Its first CEO created a vision of the company, which consequently made it one of the worlds best . The closed ecosystem and the brand appeal have enabled the company to grow into one of the most powerful in the telecommunication industry. Such well-known products as iPhone and iPad constitute a considerable part of such ecosystem.
b) What Do You Identify as Apples Core Competency?
The main competencies of Apple are differentiation and the ability to design, develop, and present unique products that have been never made by any other telecommunication company. This competency has helped Apple to become recession-proof, while the other companies experience rough times. Apple is also a good strategist, which allows it to defend its competitive advantage.
3. Focus on Recommendations
a) What Are the Top Challenges Faced by Tim Cook as Shown in the Case?
The main challenges faced by Tim Cook are connected to the way he manages the company after Jobs. Cook has a different vision of Apple that is evident in his setting to modesty or fighting against the U.S. government when it demanded to unlock iPhones for investigations. There is also a challenge to deliver a new thing like artificial intelligence to the public. In addition, it is the challenge to close the gap in employing more women.
b) How Would You Recommend He Addresses These Challenges?
The challenge of seeing Apple in a way different from Jobs should not be solved but rather viewed from a different perspective. With the current CEO, much work is done to bring new products to life. Besides, even the issue with the gender gap is discussed. Thus, proper education of the growing generation can help in overcoming the gender gap.
About author
About author
Monica is the author at https://essaysleader.com/write-my-article-critique/. She always dreamed of working in this position, working with texts and new information. After all, her credo in life is to develop daily in different fields and be an interesting person. She is fluent in three languages and holds a Masters Degree in Philology and Translator, and is also trying to master new fields in order to be knowledgeable in everything.