Discussion 1 Week 2 Apple's New Strategy - Assignment Example

Discussion Week 2 “Apple’s New Strategy” al Affiliation Discussion Week 2 “Apple’s New Strategy From the e-Activity, evaluate the level of success of Apple’s current competitive strategy. Next, suggest one (1) new innovation strategy for Apple geared toward maintaining an edge in the industry. Provide a rationale for your suggestion. The level of success for Apple’s current competitive strategy is perceived to be waning. Apparently, people are waiting (and expecting) for Apple to come up with another revolutionary product to surpass the iPhone (Bloomberg Business, 2013).

As such, one (1) new innovation strategy for Apple which could be geared toward maintaining an edge in the industry is to venture outside of the iPhone product or explore potentials for changing the interface into something totally new.2. Using Porters Five Forces Model located in Chapter 2 of your textbook, assess Apples strengths and weaknesses of each dimension of the model in comparison with those of Samsung, Apples strongest competitor. Justify your response by utilizing at least one (1) example based on customer focus.

Using Porter’s Five Forces Model, Apple’s strengths and weaknesses in each of the five dimensions, in comparison with those of Samsung, are shown below:Risk of Entry: Apple’s iPhone had been identified to be a product that is imitated by other phone manufacturers. The risk of entry or imitation by competitors is strong; yet there are legal regulations that protect the product’s copyright.Rivalry Among Established Companies: Rivalry is still strong given the popularity of the iPhone. Recently, Samsung was noted to have averred that Apple was actually imitating Samsung’s Galaxy Note (Matyszczy, 2014).

Bargaining Power of Buyers: There is low bargaining power of buyers since consumers do not have the ability to bargain down prices of Apple’s or Samsung’s products.Bargaining Power of Suppliers: There is strong bargaining power of suppliers (Apple, Samsung) that dictate the prices of the products.Threat of Substitutes: No threat of substitutes. The products are distinct and unique in features, functions, and capabilities for both Apple and Samsung products.Power of Complement Providers: No power of complementors for Apple’s iPhone which expect all applications to be provided by Apple.

Samsung has strong power of complementors where third party providers of applications add value to their products. As such, customers could prefer Samsung’s products due to the ability to access other applications in a more convenient manner.ReferencesBloomberg Business. (2013, April 25). Apples Next Products: Is a New Strategy Needed? Retrieved January 10, 2015, from YouTube: https://www.youtube.com/watch?v=glnTz5HD05UHill, C., & Jones, G. (2012). Strategic Management: An Integrated Approach.

South-Western, Cengage Learning.Matyszczy, C. (2014, September 13). Apples big iPhones are a big imitation, Samsung says subtly in new ad. Retrieved January 10, 2015, from c/net: http://www.cnet.com/news/apples-big-iphones-are-a-big-imitation-samsung-says-subtly-in-new-ad/