Accounting managerial control CASE STUDY---Apple company - Essay Example

e forces that he has described are: a) Threat of new entrants, b) Determinant of buying power, c) Threat of substitutes, d) Determinants of supplier power, and e) Rivalry among the firms. There are several threats in terms of new entrants. This is majorly because the industry is open to a number of players to come in and launch newer products with higher technology each day. Over the years there have been several companies that have tried to build their own operating systems however the market has become an Oligopoly with just Apple and Microsoft.

These two form the biggest giants in the industry and this only face a threat among themselves. It is also to be noted to the barriers to entry in this market is relatively quite low and this is why the level of threat of new entrants would be very low for Apple. As seen in the case there is also a number of new entrants in the computer industry, however there are only a few well established brands here which include, IBM, Apple, and Microsoft. These form a strong barrier to entry for the smaller firms and hence the threat of new entrants is lesser.

The threat of new entrants in this market is also relatively low since it does need high levels of capitals and also strong distribution channels. Also the companies will only be able to survive these markets if they produce based on economies of scale. This can only be done if the company has enough investments to be able to produce at higher levels. Hence the threat can be considered to be ‘LOW’. Looking at this in a strategic perspective it is seen that although Apple is a computer company has moved into the music and videos software successfully.

Apple has used the technology available and has been able to create a very strong brand image for itself. The company has been known for the use of technology and excellent branding. The company has been able to create a strong image which forms a major reason for the success of the company. If the company is considered as