Essay About Competitive Advantage Apple’S Competitive Advantages And Appreance Of High Performance Ultrabook

Apple 2012
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Apple competitive advantage Apple’s competitive advantages are its innovation (Pioneered the first usable PC, cutting edge design and user experience), strong brand equity and rapid growth.PC industry Analysis Industry rivalry (degree of competition among existing firms):High There is intense competition that leads to reduced profit potential for companies in the industry.Dell : struggle with cost controls and poor margins HP : Outsourced most its production to Asia , declined margins and eroded market share ACERThreat of substitutes (products or services)- moderate to highHigh availability of substitute products limit apples ability to raise prices: emergence of Laptop led to the average selling price (ASP) to decline by 25 % in three years (2009-2011)The economic downturn of 2009  help notebook category sales  took  off 2011  appreance of high performance Ultrabook and low performance tablet (cheap alternative to power PC for web browsing )SmartphonesGame consoles Bargaining power of buyers-High Home buyers –50% of all sales, Price sensitive, valued design, conductivity buy from “white box” channels Small-medium business (SMB)- value price , service support , buy from superstores Corporate – value price , service support , buy directly from manufactures Education – value price , service support plus software availability Government – value price , service support Powerful buyers have a significant impact on pricesBargaining power of suppliers- High Powerful suppliers can demand premium prices and limit Apple profit.Microprocessors- price stabilized:Intel –dominant the market with 80% of the market AMD -19.6%Operating System: