Apple Computers 2006
Executive Summary
Apple Computer Inc. was established in 1976 and is widely recognised as a key producer in both the Personal Computer and portable music player industries. Contributing to Apple’s success has been the development of the personal computer; laptop and portable music player also know as the iPod that uniquely uses the iTunes music player software. These three successful products are the key contributors to Apple’s growth and innovation that not only produce quality core products but also allow development of computer hardware accessories and software. Apple Computer is currently the leader in the MP3 player industry and holds a 4.2% market share in the Personal Computer Manufacturing Industry (third quarter, 2005). To improve or maintain Apple’s current situation, it is vital for the company to examine their strengths, weaknesses and be aware of competitor’s role in the market. This report will examine the pertinent issues within Apple (as at 2005), an analysis of their current strategies used to achieve their success, an action plan and recommendations of strategies that Apple could use to increase market share, improve profitability and remain viable in constantly changing markets.
External Environment Analysis
Five Forces Model – Personal Computer Market
1. Rivalry among competing sellers
Strong rivalry is evident as 5 key companies dominate the technology industry: Dell, HP, Gateway, IBM and Apple computer. Companies are active in innovation, and they are aware that PC’s are weakly differentiated. However, weak rivalry occurs simultaneously as switching between competitors is costly to the consumers and once a company attracts and acquires its customers it is rare that they will switch w ...