This paper will discuss the industry conditions in which the Apple Company operates and highlight its position in the market as well as the outstanding strategies. The Apple Company is one of the leading firms in the electronics, phone, and the computer industry. …
This study outlines that the company has exhibited growth, focusing on high-quality products. This paper will discuss the industry conditions in which the Apple Company operates and highlight its position in the market as well as the outstanding strategies. The electronics, phone, and computer industry is highly competitive. Numerous dominant economic characteristics determine the level of profitability in the industry. Some of these characteristics include the market size, which has been increasing in the recent years leading to more customers. Initially, the industry did not have many companies. However, there have been a remarkable number of companies in the industry recently. There is a high level of competitive rivalry because many of the products have similar features and each company is struggling to produce differentiated products. Technology and innovation cannot receive any form of underestimation in this industry because they determine the rate of launching new products into the market. The market is full of technologically perceptive customers, a factor that compels the companies in the industry to invest in innovation. Moreover, the industry requires a high level of capital and immense investment in research and development. Other economic factors critical in this industry include scale economics, learning and experience defects. A combination of these economic factors determines the profitability in the industry. There is competition in the phone industry between existing firms such as Apple, Samsung, Nokia, and other emerging companies. On the other hand, the computer industry has competing firms such as Apple, Dell, Microsoft, Hewlett Packard (HP), and IBM.
There is minimal chance that new entrants will emerge considering the numerous barriers that exist in the industry. For example, a high level of capital is mandatory for any entrants into the industry. ...
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