Apple Incorporation - Firm and Industry Structure - Case Study Example

Globally, Apple Company is in the second position in information technology in terms of revenue generation with Samsung Electronics taking the first position. As a result of the company's strategy to diversify its product portfolio, it has many competitors including Samsung Company, Microsoft, HP, AND Acer among others.

Firm and Industry Structure
Apple is faced with stiff competition from well-established firms in an industry that is costly to enter. In this regard, the company is not able to entirely control the price in the market. On one hand, Apple operates in an oligopoly market structure. One of the major aspects of an oligopoly market structure is that it is under the control of a small number of competitors. Being referred to as the oligopolists, firms in an oligopoly market structure are well established and have a strong influence in the market because there are barriers to entry due to the high costs. The company's oligopoly market structure falls in the Smartphone’s operating systems that include Windows phone a product of Microsoft, Apple’s iOS, and Android a brand produced by Google (Gil and William, 1999).

On the other hand, Apple experiences monopolistic competition as far as branded computers are concerned. In a monopolistic market structure, there are many competitors. Major companies that compete with Macbook and iMac, and key Apple-branded computers include Dell, Acer, Toshiba, and Asus. Nevertheless, Apple is more of an oligopoly firm rather than a monopolistic firm. One of the major aspects that make Apple enjoy high revenue is the production of quality brands that meet the immediate needs of consumers globally. Strong brand loyalty in the international market has made the company differentiate itself from its competitors. Additionally, the company has a wide range of products that are highly demanded thus resulting in high sales and sustainable profitability.

Recommendation

As a result of the stiff competition in the information technology industry especially in the US market, my view is that Apple should come up with products that are of high-quality buat t lower prices and introduce them ie developing economies. Based on the increased demand for computers and mobile especially in the African market, Apple should utilize such an opportunity for unproductive brands that will suit the need of this market which is characterized by low incomes but many opportunities. To make the company more successful, I would also suggest that Apple should acquire more firms in the information technology industry to improve its marketing strategies as well as its capital base. This will not only increase the company's revenue through expanding the market segment, but also it will make the company more funds to undertake more innovations. Read More