Apple Case Study

Today, the development of the personal computer industry affects consistently the development of many organizations and companies operating in different industries because personal computers are still applied widely and the functioning of modern organizations is unthinkable without the use of personal computers. At the same time, such companies as Apple develop new technologies, which compete with companies operating in the personal computer industry. In this regard, it is worth mentioning the development of mobile devices, such as iPod, iPhone, iPad and others, which may compete with personal computers, challenge their position, and become substitutes for personal computers. In such a context, the development of Apple and the introduction of new products may put the company in an advantageous position, taking into consideration the current situation and basic trends in the development of the personal computer industry and its probable decline in the future.

On analyzing the current development of the personal computer industry, it is important to place emphasis on the fact that this industry plays an extremely important part in the development of the modern economy because organizations use personal computers widely. In fact, operations of modern organizations are unthinkable without the use of personal computers, which help to develop their business successfully. At this point, it is necessary to dwell upon the Porter’s five forces analysis of the personal computer industry to understand the basic trends in the industry, to analyze the competitive environment in the industry, and to forecast its further development. In this respect, it is worth mentioning the fact that the development of the contemporary personal computer industry faces the growing competition and threat of the appearance of substitutes. To put it more precisely, the development of the personal computer industry is vulnerable to the growing pressure from the part of substitutes. In this regard, it is worth mentioning netbooks, iPad, laptops, smartphones, and other devices, which can replace personal computers. In actuality, customers prefer mobile devices to conventional personal computers because they are more convenient to use.

At the same time, mobile devices and the development of modern information technologies and telecommunication systems, including internet, contribute to the increase of functionality of mobile devices. As a result, mobile devices become efficient and easy to use. Therefore, customers prefer mobile devices to personal computers because they are more efficient and allow to stay connected to internet as well as maintain efficient communication any time and almost anywhere, whereas personal computers make customers attached to their desktops.

In such a situation, the buyer power decreases because customers shift their interest from personal computers to mobile devices, such as notebooks, or iPhones, or iPads. In this regard, the development of modern technologies offer customers a variety of choices, whereas personal computers, in spite of all their progress, become a bit out-of-date compared to mobile devices. The decrease of the buyer power is a serious threat to the personal computer industry because organizations operating in the industry depend closely on the buyer power.

On the other hand, the supplier power is strong in the personal computer industry that allows companies operating in the personal computer industry to maintain the steady manufacturing of computers and the reliable and sufficient supply of personal computers to customers at moderate or low prices. However, the supplier power, being important, still cannot maintain the steady and successful growth of the computer industry, whereas the customer power is even more important, whereas the threat of substitutes may affect consistently the further development of the industry (Sarewitz, 2003). In such a context, the further development of the personal computer industry may face a steady decline, taking into consideration the fast growth of substitute industries and emergence of new, mobile devices, which can replace personal computers and which may be more attractive for customers than personal computers.

In addition, it is necessary to take into consideration the rivalry within the personal computer industry. In fact, this industry tends to monopolization because of the domination of such giant as IBM, whereas the software supplied for personal computers by Microsoft also raises issues related to the monopolization of the market. In this regard, companies manufacturing mobile devices tend to develop their own operating system, alternative to Microsoft, which holds almost monopolistic position in the world market. For instance, it is possible to mention Android, which is an alternative operation system used in smartphones. As a result, the competition within personal computer industry is quite controversial because, on the one hand, the competition is relatively low but the risk of the appearance of substitutes increases substantially.

In such a situation, it is obvious that the dynamics of the industry is favorable for Apple. To put it more precisely, the current business strategy of Apple focuses on the introduction of innovative products, which offer customers a wide range of functions and provide them with the high level of mobility and communication. In this regard, it is worth mentioning the success of Apple’s iPhones and iPods, which have proved to be able to challenge the position of conventional personal computers. At the same time, the introduction of iPad can enhance the position of Apple even more because the company can benefit from the introduction of the new device and offer customers a variety of devices to choose, alternatively to personal computers.

Moreover, mobile devices manufactured by Apple offer customers more services compared to conventional personal computers. In fact, customers can use Apple’s mobile devices for communication and sharing information wider compared to personal computers. For instance, consumers use iPhones as phones and as personal computers but, unlike personal computers, iPhones are mobile, whereas their performance is comparable to some personal computers. The introduction of new devices, such as iPad, enhances the competitive position of Apple because these devices are even more functional and their performance is closer to personal computers compared to iPhones. As a result, customers naturally prefer mobile devices, which they can take anywhere they life, instead of conventional personal computers bound to their desks.

Thus, taking into account all above mentioned, it is important to place emphasis on the fact that the development of the contemporary personal computer industry is characterized by the steady decline. Instead, the development of mobile devices becomes a threat to the personal computer industry. In such a situation, such companies as Apple, can benefit from the development of the personal computer industry and its innovations introduced in the market. In such a way, the company can enjoy the fast development because the company can take the lead in the industry and outpace its rivals and companies operating in the personal computer industry.

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