Apple Firm Strategy Analysis Essay

The firm I have chosen to analyze is apple. orchard apple tree, officially called as orchard apple tree Inc. was founded on April 1, 1976 by Steve Jobs and Steven Wojniak. It was incorporate on January 3, 1977. (Mohta, 2010) apple designs and compensates consumer proceedss such as computers, laptops, tablets, phones and music players and computer softwargon program package products such as Mac OS Operation System and iTunes. over the past few years, apple has gained a orotund customer swinish and been able to dominate the market parting. Strategic frameworks such as ostiariuss quintette forces and Strategic focus will help us in analyzing how Apple has managed to sustain its realizes over a long period of time.Porters five forces frameworkThreat of CompetitionWhen it succeeds to computers, tablets and music players, Apple dominates the market share by a huge margin. The gross profit for Apple in the year 2012 is $65.64 billion whereas the gross profit for HP and Dell is $27.64 billion and $13.06 billion respectively. (Sparks, 2012) HP was unable to compete with Apple in the tablet market that it has started to consider focusing only on the computer exertion. In the smartphone market, Samsung has by far been the biggest competitor for Apple. Samsung has 29.1% of the market share in the smartphone market whereas Apple only has 24.2 % of the market share. (Reisinger, 2012)Threat of tonic entrantsConsidering the large customer base Apple has, threat of tender entrants is sort of low. The new entrants have neither been able to match up to the tone of voice of the Apple products nor to the sales volume held by Apple. Hence, if Apple continues to design and manufacture innovative products, it will be super difficult for new entrants to be able to compete with Apple.Threat of SubstitutesWhen it comes to Apples hardware products, on that point are no substitutes as such that could replace it. However, when it comes to Apples software products suc h as the iTunes, which is the music store designed and developed by Apple for the purpose of purchasing and downloading music, there is a juicy possibility that the customers could look out for alternative sources for music such as limewire, youtube.com. (Mohta, 2010)Power of buyersApple has always centre on hardware and software integration of its products. Hence, Apple customers end up owning more than one Apple product. As a result of this, switching costs are extremely high. Also, due to the fact that large sales volumes are promised by Apple to the carrier networks such as AT&T and Verizon, iPhones are change to the customers at a subsidised rate. This is an indication that the carriers have very slight buying power. (Sparks, 2012)Power of suppliersApple has an advantage over its suppliers as it outsources intimately of its manufacturing and has also started producing its own supplies. Consequently, it also gives Apple a huge belligerent advantage. ( status paper warehou se)Strategic focus frameworkThe three value disciplines that are taken up for analyzing a company areOperational integrityApple as a company is highly efficient when it comes to usable excellence. All the plane sections in the organization starting from the sales forecasting department to the Distributions department are synchronised with each other leading to a highly efficient supply chain. Also, Apple has a limited product line. (Lariviere, 2011) Hence, it is able to provide its complete focus on designing and manufacturing those products or else than drifting off from the organizations objective to sustain profits with a large number of product lines.Customer intimacyApple targets people. It focuses on users. And it lets them conclude how and where they will use its products. (Asay, 2010) Apple has always been a customer focused company where its main aim is to deliver high quality products to its customers. crossroad LeadershipApple has managed to be a leader in its indus try because of the fact it has been able to design innovative products. It has initiated changes to which its competitors had to respond. For example, Apple revolutionised the Smartphone market by introducing the iPhone. Except for Samsung, no other competitor of Apple has been able to come up with a strategy to deviate market focus from Apple. In addition, Apple has always on the lookout for new products to design and new markets to enter. This strategy has led to Apple being a leader in its industry.ReferencesAsay. M. (2010). Apple Doesnt target Markets. It Targets People. GIGAOM. Retrieved from http//gigaom.com/2010/08/26/apple-doesnt-target-markets-it-targets-people/Bargaining Power of Suppliers. Term Paper Warehouse. Retrieved from http//www.termpaperwarehouse.com/essay-on/Bargaining-Power-Of-Suppliers/84367Lariviere. M. (2011). Operations Apples Secret Sauce? The Kellogg Insight. Retrieved from http//operationsroom.wordpress.com/2011/11/04/operations-apples-secret-sauce/Mohta, J. (2010). Poters 5 forces model case Apple Inc. Slideshare. Retrieved from http//www.slideshare.net/jontymohta444/porters-5-forces-model-case-apple-incReisinger, D. (2012). Samsung Pulling away from Apple in smartphone market. CNET. Retrieved from http//news.cnet.com/8301-1035_3-57424779-94/samsung-pulling-away-from-apple-in-smartphone-market/Sparks, D. (2012). Competing with Apple is No Fun. The Motley Fool. Retrieved from http//beta.fool.com/danielsparks/2012/09/03/apple-2012-50-growth/10776/Spartanski. (2009). Case education Apple Inc. Slideshare. Retrieved from http//www.slideshare.net/Spartanski/case-study-apple-inc-2008