Strategic Framework of Apple

Question: Discuss about theStrategic Framework of Apple. Answer: Industry Competitors of Apple Apple has direct competition with the Google, Hewlett-Packard, Samsung electronics, and Amazon Inc. Thus, competitive force in the industry is very strong. One of the most important things which make the industry highly competitive is the cost switching by the companies because it doesnt require a substantial investment (Burke, van Stel, Thurik, 2010). Power of Buyers of Apple In case of Apple, the bargaining power of individual is relatively weak because the loss of one buyer is small for the company. So, the combined marketplace bargaining power of buyers can be the strong force for the company. The possibility of mass consumers can be strong force to defeat the competitors (Dobbs, 2014). New Entrants in the Marketplace The new entrants to the market could pressurize the market share of Apple relatively low. The development of new product with innovative RD in the new entrants can be problem for the Apple. So, it is important for the Apple to strengthen the competitive position by developing new products. Power of Suppliers of Apple In the case of Apple, the bargaining power of suppliers is a comparatively weak. There is large figure of suppliers and Apple is free to select the potential suppliers for its products. This strengthens the position of the Apple in negotiating with suppliers (Mozur, 2013). Substitute Products in Market In case of Apple, market force in substitute product is relatively low because the fact is that the substitute products have limited capacity compared to the products of Apple. For example, the landline telephone has less capability compared to the iPhone to make phone calls (Gershon, 2013). References Burke, A., van Stel, A., Thurik, R., (2010). Blue ocean vs. five forces.Harvard Business Review,88(5), 28-29. Dobbs, M. (2014). Guidelines for applying Porters five forces framework: a set of industry analysis templates.Competitiveness Review,24(1), 32-45. Gershon, R. A., (2013). Digital media innovation and the Apple iPad: Three perspectives on the future of computer tablets and news delivery.Journal of Media Business Studies,10(1), 41-61. Mozur, P. (2013).Apple Faces Dilemma Over Strategy in China.The Wall Street Journal.