MG485-44: Business Policy and Strategy
Instructor Name: Prof. Stacy Crawford
Date: 01/1/2015
Task:
Case Based Component Paper #1
Johnson, pg. 1
The Natural Physical Environment
It virtually impossible for a company to design a strategy without a deep understanding of its external environment. Once management has outlined the aspects of the environment that has an impact on the business, they are in a better position to accurately determine the firm’s competitive advantage. It is with this in mind, that Apple Inc, a big American company had an ardent interest with a hub on conception and making consumer electronics and intimately connected softwares.
Apple Inc, since its inception as Apple Computer is …show more content…
Startup costs are extremely high so the probability of new entrants is low. Apple Inc have therefore capitalized on their distribution channels and have created strong branding awareness that makes it difficult for new comers to compete. The probability of success is so low that competitors pursue niche markets rather than trying to compete with the bigger companies. Over the years Apple Inc has position and so it has created its space in the computer industry just its other …show more content…
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Opportunities and Threats to Apple .Inc
External Environment
Opportunities
Opportunities are external factors that affects a company’s current and future position.
1. Apple brings to the table a different operating system and so they can take advantage of their operating system differences by turning it into an opportunity to cultivate improvements to the Macintosh platform in order to achieve greater perceived functional and design advantages over competing platforms.
2. The Apple Mac OS X is seen as a stable, reliable, and secure system that is also very easy to use has a very high defense against computer works and other hacker inconsistencies that may presents itself.
3. Apple 's pursuit of the music industry through its iTunes also brings about a wonderful opportunity to increase their brand awareness. The launching of the iTunes Music Store resulted in over 2 million downloads in only 16 days (Mordem, 1993). Consequently, if Apple 's opens music store worldwide it will be a very profitable and great opportunity for them.
4. Increasing bonds and partnerships with other companies
5. Increasing online sales
Threats
Threats are negative external forces that a company has no control