Strategy nowadays is something fundamental for an organisation, companies choose their direction or so called scope and try to accomplish it over a long term run. In addition to this strategy has to rapidly respond to the change in the market and partner to improve efficiency.
Initially in the fifties and sixties most economists talked only about the competition on price, but it all started when in 1979 Micheal Porter brought another four competitive forces in “How Competitive Forces Shape the Strategy”. One of the leading electronics companies in todays worlds that features its strategy based on the Five forces is Apple. The main concern will be how does these forces apply in such a big company as Apple and how do they help to determinate the strategy for the future.
Michael Porters’s five forces can easily provide us with information such as which factors will have a main impact, and which one will have less impact on our strategy. The five …show more content…
The strength of Apple comes from a very good financial position, but this is all thanks to the great demand (good advertising) for the companies products. In addition to this the company has a strong brand image and contains a worldly-wise supply chain. Contrary to this the company the company has a constrained product range, additionally Apple charges higher prices for their products then the competition does. Another major weakness is that recently most Apple’s products had no major improvements in the latest product version. The opportunities for such a company can be the increase investment on research and development. Furthermore the company should try to find a strategic partnership and try to create product diversification. The biggest threats for Apple is the accentuating competition from china. However another important threat is a loss of innovation which is due to the misplacement of Steve
Initially in the fifties and sixties most economists talked only about the competition on price, but it all started when in 1979 Micheal Porter brought another four competitive forces in “How Competitive Forces Shape the Strategy”. One of the leading electronics companies in todays worlds that features its strategy based on the Five forces is Apple. The main concern will be how does these forces apply in such a big company as Apple and how do they help to determinate the strategy for the future.
Michael Porters’s five forces can easily provide us with information such as which factors will have a main impact, and which one will have less impact on our strategy. The five …show more content…
The strength of Apple comes from a very good financial position, but this is all thanks to the great demand (good advertising) for the companies products. In addition to this the company has a strong brand image and contains a worldly-wise supply chain. Contrary to this the company the company has a constrained product range, additionally Apple charges higher prices for their products then the competition does. Another major weakness is that recently most Apple’s products had no major improvements in the latest product version. The opportunities for such a company can be the increase investment on research and development. Furthermore the company should try to find a strategic partnership and try to create product diversification. The biggest threats for Apple is the accentuating competition from china. However another important threat is a loss of innovation which is due to the misplacement of Steve