Management strategy of Apple Case Study Example | Topics and Well Written Essays - 1750 words

heed strategy of Apple - Case Study ExampleThis research will begin with the presentation of the bane of new entrants. Even though there are great opportunities for emerging companies to compete in the personal computer manufacturing, it is controlled by the five super powers Apple, Sony, HP, Dell, and Gateway. Hence, Apple plays in an oligopolistic market environment. Probably, the pregnant challenge to the industry would be a large number of mergers and buyouts prevailing among these industrial movers. They are able to bring unitedly their cost on research and development in order to gain an advantage over others. This care for leads to greater competition between the smaller organizations which try to create superior harvest-festivals and bigger companies which generally sequester up the smaller ones to develop their competitive edge. Implementation of anti-trust agreements within the computer industry does not render imposters to introduce products of similar types into the market, and so the threat of substitute products and services is not signifi ratt within the industry. On the other hand, the issue that creates a greater threat is the global production of computers. Today, the United States of America is the drawing card in producing computers in the industry with Japan and Europe as the other key players in the industry. unalike the other industries where suppliers hold a power over the manufacturers, the computer industry allows the manufacturers to hold a significant amount of power over suppliers. Here the suppliers are competitive in order to maintain single(a) association with the manufactures for supplying their products. And so, they are always forced to adjust their hurts or associate with larger firms for go the competition. 4. The threat of the bargaining power of buyers The bargaining power of buyers determines the effect that a companys customers can have on the profitability of the business. Even though the computer industry i s getting harder day by day, customers do not possess a greater bargaining power, and hence that does not drastically contact the industry.5. Industry Rivalry When observing the computer industry with regard to the industry rivalry, it is found that the above state five leading manufacturers are in competition to bring out the most efficient and least expensive machines. Strategic host Mapping Firms belonging to same strategic grouping will be having two or more competitive characteristics in common, like selling in same price/quality range, covering same geographic areas, being vertically integrated to same degree, having comparable product line breadth, etc. Obviously, as Huff, Floyd, Sherman and Terjesen (cited in executivemanagementskills.com) point out, firms operating under the same strategic group may possess some common competitive features such as pricing policies, product diversification, and take aim of vertical integration. Following is the strategic group map for th e computer industry (see figure 1). Strategic Group Map(Figure 1. Source Bamford and West, 123).2. Apples Strategy Apple uses a corporate-level of strategy of competing on some(prenominal) different levels. As Boddie states, Apple follows a comprehensive corporate level strategy through which it competes on different levels.