Next, according Mintzberg (1985), besides of those five definitions of strategy (as a plan, ploy, pattern, positive and …show more content…
Internal analysis is about the core competence, while the external analysis is about the 5F’s (Five Forces) of Michael Porter’s model, which included entry, threat of substitution, bargaining power of buyers, bargaining power of suppliers, and rivalry among current competitors that can reflect the competition in an industry. First of all, the core competence of Apple Company mostly is in youngsters and business people as target priority. For example, sixteen out of eighteen youngsters indicated that they owned IPods (Schlager & Garrity 2005). Pricing is one of the miracles of the iPod story. Consumers expect the price on gadgets to come down as market penetration goes up. But as the iPod gained ubiquity, Apple simply packed more memory and features into its core products, while holding the line on price. Now Apple is getting aggressive on pricing. Of course, the next big step for digital could be full-song delivery to mobile phones in 2005. But it remains unclear what the consumer experience will look like, and hurdles …show more content…
The strengths of Apple Company are they have followed the vertical integration strategy to build a formidable competitive advantage. Apple Company is ability to create the specific functions such as; application software, hardware, and services by using the unique ways. This is the reason why competitors are not able to replicate these functions into their products (Apple Inc, 2014). But, the major weaknesses of Apple Company are because of the price problems. For instance, many consumers cannot afford an Iphone due to the high price, so, some of the consumers will rather purchase an Android phone with certain similar functions in a lower price (Apple Inc, 2014). Next, the opportunities of Apple Company is they are able to positive outlook for smartphone and tablet markets. Lastly, the threat of Apple Company is because of the high price, the price could be one of the key competitive disadvantages of Apple that the competitors can effectively use to gain market share (Apple Inc,