What Is The Five Forces Analysis Of Apple's 5 Forces

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I am going to begin the five forces analysis with buyer power. Buyer power for a desktop computer is high because consumers can choose from many different manufacturers of desktop computers available in today’s market. For example, the brands of desktop computers we currently use at work are Dell, Hewlett-Packard, Lenovo, Sony, and Apple. Several years ago, our IT department began updating the computers in the offices and on the manufacturing floor. We currently have the most Hewlett-Packard computers because they offered the largest discount for our purchase. However, before the Hewlett-Packard computers, most of the desktop computers in our company were manufactured by Dell. Hewlett-Packard offered the company a larger discount for computers …show more content…
The supplier power for manufacturers of desktop computers is low because most components are standardized and many manufacturers exist in today’s market. Desktop computer manufacturers that run Microsoft Windows software demonstrate a low supplier power towards consumers, because of the variety of computer brands available, which in turn drives the prices down. Although, the supplier of Apple’s manufactured parts would have a low supplier power, Apple has a high supplier power towards consumers because of its unique MAC operating system. There are no substitutes for Apple desktop computers, so the buyer power is low. Apple customers are loyal and desire only Apple products. Apple provides customers with the opportunity to purchase refurbished computers at a discounted price, and offer credit for an old Apple computer which can be used towards the purchase of a new …show more content…
The rivalry among companies manufacturing desktop computers is very high. Companies are currently spending billions of dollars a year just on research and development. Companies are constantly researching and developing the newest and innovative ideas for desktop computers. Apple’s desktop computers are more expensive than competitors. But, despite that fact, Apple has maintained a large share of the computer market. “In September of 2009, according to market researcher NPD Group, Macs accounted for 18.9% of all laptops and desktops sold in U.S. retail outlets. For computers priced above $1,000, Apple 's share was an astonishing 89% (Wildstrom).” Hewlett-Packard and Dell have adopted some of Apple’s computer styling to attract Apple’s high-end customers in addition maintaining lower cost alternatives. Since Apple offers a unique product, the greater rivalry is among Windows based desktop computer companies. Customer service is another rivalry among desktop computer companies. Customer service is key to customer retention. According to consumer reports, Apple ranked highest in tech support in 2012 (Keizer). Other top-ranked companies were Lenovo, Asus, Dell, Toshiba, Hewlett-Packard, and Acer

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