Apple Porter's Five Forces Analysis
This essay will seek to analyze the different types of strategies that Apple Inc has undertaken in its pursuit towards competitive advantage. It will also focus on the outcomes of the strategies implemented and identifying whether the strategies implemented will lead to the desired type of competitive advantage. This essay will include some of Porter’s 5 forces analysis model, generic strategies and the value chain model.
Strategic planning and management is an important and fundamental component of any businesses. Plan formulation is initiated with broad and deep deliberation of an organization’s internal and external environment, by employing the SWOT analysis framework in tandem with Porter’s five forces, as a simple example, to direct the organization into making informed decisions. Rothaermel (2015) in his book, Strategic Management, describes this process as a goal-oriented action, in order to gain and sustain superior performance relative to its competitors. When discussing competitive advantage, it is imperative to note that competitive advantage is always relative, measured through a benchmark against a set of indicators. The reason is because of the dynamic …show more content…
One of the reasons the value chain framework is helpful is because it emphasizes that competitive advantage can come not just from great products or services, but from anywhere along the value chain. Following its near bankruptcy in the year 1997, Apple not only revitalized its business, but soared to be the most valuable company with a market cap of an estimated $620 billion, overtaking Microsoft in a span of roughly 15 years. The example shown above clearly illustrate that Competitive Advantage is a transitory effect between the tech giants, and as much as it is difficult to gain competitive advantage, it is even harder to sustain it. Rothermael