Essay on Strategic Analysis of Apple Inc
Apple Inc. is an American corporation founded in 1976 that was one of the early pioneers of the PC and has recently been at the forefront of next-generation devices. In the past Apple was a pioneer in PC technology before losing out to the Microsoft and IBM driven PC industry. It …show more content…
The threat of potential new entrants can be seen as medium to low.
It has been forecasted by Keynote (2007) that globally consumer electronic market is expected to grow at a staggering 27% (CAGR) between 2007 and 2012. The growth is primarily driven by the staggering expansion of Asia Pacific and Latin American markets, therefore making the market attractive for potential new entrants from China. The growth rates have been compared in the following illustration:
Graph: Regional Forecasts - Period Value Growth between 2007 & 2012 (Euromonitor, 2008)
Although there are higher sunk costs associated with entering the consumer electronics industry, however some highly growing segments are seen as a ‘pot of gold’ by some companies from other relevant fields. Companies like Matsushita, Sanyo, Haier, and TCL have been actively pursing entry into these new areas.
Threat from Substitutes:
The threat of substitute for the consumer electronic segment is very low
Although technology is converging and many sectors have started overlapping in attracting business from each other, however there is no substantial contender for replacing consumer electronic segment in near future.
Intensity of Rivalry among Existing Competitors:
The intensity of rivalry among existing competitors can be seen as high.
The recent years have seen consolidation in the