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Competitive Analysis - Essay Example

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Apple range of products includes smart phones, software, computers and their operating systems. All of the above products brought an…
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Competitive Analysis
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Competitive Analysis Competitive Analysis Apple can be regarded as one of the companies that have changed the world of communication through the introduction of high-end mobile devices. Apple range of products includes smart phones, software, computers and their operating systems. All of the above products brought an enormous impact to all the modern users and those who wanted to experience a new lifestyle in the digital world. However, smart phone market has experienced the entry of other companies, which are producing mobile devices that have the capacity and capability to compete with Apple. This paper will discuss the competitive forces facing apple in comparison to its main competitors.
Apple’s growth is mainly due to social factors. Currently, people are ready to explore new trends in technology due to limited time for leisure, changes in how people live or work, and the internet has become a way of life. People need devices that will enable them to shop online, attend lessons online and also play games online (David, 2010).
Technologically, apple first developed the tablet, but other companies introduced the product later. However, most of these companies have withdrawn their services due to high competition and demand for continued innovation. Currently, only two companies dominate this market and they include Apple and Samsung. These two companies face continued court cases regarding patent infringement. Therefore, it is upon Apple and other companies involved in tablets production to continue innovating and coming up with new products so that they can remain in the market. This is because with the current rate of technological advancement, it may not be certain that tablets will remain forever, or a new product will come into the market (David, 2010). Various competitive forces that have positively impacted on the organization are introducing new devices before any of its competitors can do so, maintaining its I-culture as the brand name, and low price strategy.
Based on the market and the industry, there is an exceptionally high competitive rivalry between suppliers as the market is highly volatile and any entrant can penetrate the market and gain a large share or loss. However, Apple has the upper hand in staying strong in the market regardless of the high rivalry between suppliers. Apple currently enjoys a large market share than Samsung, which stands at more than 80%. On the other hand, Apple is a unique brand both on its design and software. Apple uses its own operating system while Samsung uses android, which is similar to other producers of tablets. Furthermore, Apple enjoys a lot of patents making it hard for Samsung to penetrate into the market more effectively like Apple. However, both companies have efficient machineries and capital, thus making the market more competitive due to their ability to manage their cash flow, creditors and debtors (David, 2010).
Apple faces minimal effect from new entrants due to its vast market share and higher economics of scale. On the other hand, apple enjoys extensive customer loyalty through their brand and I-culture. However, this is evident in the tablet sector, but in other sectors it is facing enormous competition from Lenovo, dell and HP. One significant threat Apple is facing is the threat of substitutes. Devices are been produced on a daily basis, and there is no enough pocket to carry them, but with the development of cross over devices, Apple is finding it difficult to protect iPod due to the convergence of different technologies (David, 2010).
David, F. R. (2010). Strategic Management: Concepts and Cases (13th ed). London: Prentice Hall. Read More
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