Apple Computers are now operating in a vastly different world than when they began in the 1980s, encountering differences such as the shrewdness of modern-day consumers, and the rise of new markets and challengers.
Utilizing Porter's 5 Force Model, we shall analyze significant alterations in the market. The intensity of competitive rivalry has heightened due to a rise in the number of competitors, advancements in distribution channels, and a reduction in switching costs. Competition has expanded beyond IBM and PC clones to now include Dell, HP, and Lenovo. Innovations in distribution channels and inventory systems have minimized storage costs and accelerated the product delivery time compared to the 1980s.
Moreover, consumers' advanced technology skills enable them to easily switch between competing companies. The advent of the internet has opened up various distribution channels for
...Apple Computers, making it difficult to control the selling of their products exclusively. Despite this, the threat of the "white box channel" persists, where a high level of customization exists. If consumers prefer purchasing PCs from this channel, Apple and other companies cannot prevent them from doing so.
Nowadays, the incumbents possess a strong brand identity, while facing the threat of substitutes. In the past era of 1980s, computers were replaced by manual work or calculators, but presently, alternatives to the personal computer include mobile phones, PDAs, and Blackberry. To combat this risk, Apple Company introduced its iPhone in the market. The power of buyers was limited back when PCs were bulky and costly.
PCs were not as essential in the past as they are currently, but they have drastically evolved to become slimmer and more affordable, and have become deeply ingrained i
our daily lives. Consequently, the demand for PCs has significantly risen among various buyers including businesses and consumers. Furthermore, customers now require more transparency in the cost structures of companies than ever before, resulting in greater power for buyers today than in previous times.
Suppliers have gained more power as Apple Computers now depends on external companies like Intel and software providers to produce suitable applications for their products. In the past, Apple relied solely on its own proprietary software, but this has changed with the need for programs such as Windows for Mac and Adobe for Mac.
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