Segmentation is putting marketing focus on a particular group of potential consumers. The computer industry has many companies that produce computers but Mac by Apple has segmented them self from other computer companies like HP and Sony. The “five competitive forces and competitors” (Kotler & Keller, 2009, p.154) described by Michael Porter are the “threat of intense segment rivalry, the threat of new entrants, the threat of substitute products, the threat of buyers’ growing bargaining power, and the threat of suppliers’ growing bargaining power” (pp.154-155).
Mac stands alone from their competitors although they do advertise against the PC letting the public understand Mac is not the typical computer. Apple advertises Mac
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This was very apparent recently with the launch of the new Windows 7 for PC’s. PC companies were almost certain that with this new platform, more sales of this product would have definitely have PC ahead of Mac for the first time with regards to quality and cost. However , it was found that “ Windows 7 hype might end up helping Mac by enticing customers into stores and lifting overall computer sales amid the marketing hoopla”(Madway, 2009). Overall, Mac will have customers who remain loyal because their product comes with less headaches.
This was a very information write-up and again, great job!
Madway, G. (2009). Can Microsoft Windows 7 Dent Apple Mac's Momentum?. Channel Insider, 1-2. Retrieved from Business Source Complete database.
When it comes to substitutes, Mac isn’t affected by PC as consumers who understand the Mac know they are getting a high-quality product and they are willing to spend extra for it. This is shown by Apple’s first quarter report which showed they sold over 2.5 million Macintosh computers during the first quarter of 2009 (Apple, 2010), when the economy was struggling.
Apple doesn’t have to worry about bargaining power as they don’t sell to distributors except those that they give a licenses to sell their products (i.e. Best Buy). It is really rare to find a Mac on sale unlike their