Industry Analysis - Research Paper Example

This paper will analyze the competitiveness of Apple Inc in the industry. Application software industry analysis Introduction Apple Inc was established in Cupertino, California back in April 1976. Apple manufactures the Mac OS X operating system, the iWork suite of productivity software and iTunes media browser. Some innovative products include the Final cut Studio that includes professional audio and film industry software. The company has earned a good reputation due to its philosophy of innovation, aesthetic product design and distinctive marketing efforts.

In the year 2009, the global sales turnover was $ 42.91 billion (Hoovers 2012). Mac OS X, based on NeXTs OPENSTEP and BSD Unix was launched in 2001 after several years of research and development. Mac OS X combines reliability, security of Unix and ease of the user interface. In the same year, iPod digital audio player was introduced while the iTunes store that offers online music was introduced in 2003. More than 5 billion music downloads had been sold by the year 2008 (Henry, 2008). Microsoft Corporation has its headquarters in Washington that develops licenses and manufacturers different computing products.

Some of the product divisions include servers and tools, entertainment, windows and windows live division, and Microsoft business division. Microsoft has not only focused on its software division but also consumer electronics, digital distribution, video games, hardware and online advertising (Hoovers 2012). The mission of the company is to help businesses around the globe to realize their full potential (Ungson & Wong, 2007). Apple Inc has various strengths that make the company competitive in the application software industry.

Apple has a considerable market share due to its reputation of innovation. Apple has a competitive pricing strategy and maintains the operating costs lower than Microsoft. Apple has consistently differentiated its products and like the communications and media products. Apple has achieved customer loyalty due to high quality software than Microsoft software (Hoovers 2012). Unlike Microsoft, Apple Inc has a strong online presence which has enabled the company to attain market leadership in the online sales (Ungson & Wong, 2007).

STEEP Analysis Steep analysis refers to the social, technological economic, environmental and political factors that determine the competitive capabilities of the businesses in a particular industry. These external factors influence the competitive strategies that firms in the industry must implement (Hill & Jones, 2009). Social environment The social environment is conducive for Apple Inc business. The world population growth rate is currently high where the youth comprise majority of the population.

The level of literacy is high since most of the countries have compulsory education laws thus the demand for application software will remain high. Generally, the US citizens have positive attitudes towards work and use of software products to facilitate the efficiency of work. US citizens desire quality and innovative products thus the demand for Apple’s application software and other media products will remain high (Ungson & Wong, 2007). Technological environment The recent advances in computing and use of the internet to market application software will enhance the market share for Apple (Hoovers 2012).

Apple utilizes modern technology in the design and manufacture of its products like the iPhone. Unlike Microsoft