Apple computer began opening storefronts in the United States in effort to compete against the PC based companies. Their thought is that by having it available for the customers some will eventually make the switch away from the PC-based systems. The largest socio-cultural hurdle for companies such as Apple is the lower educational standards of many countries. While many are making great progress, they are limited in number.
Industry Analysis / Porter’s Five Forces Model of Competition Porter's uses the five forces, supplier power, barriers to entry, threat of substitutes, buyer power, and the degree of rivalry, as tools that help analyse a company's position against its competitors (QuickMBA site, 2003). Threat of New Entrants, (low): Start-up costs are extremely high so the probability of new entrants is low. For more details refer to appendix 2 (a).Bargaining Power of Suppliers, (low): The suppliers are plentiful and must compete with others to ensure that they will be able to retain the business of the computer companies. For more details refer to appendix 2 (b).
Bargaining Power of Buyers, (high): All of Apple's customers have a variety of computer companies from which to choose when it comes to purchasing hardware, software, or peripherals. Switching costs are low. For more details refer to appendix 2 (c ).
Threat of Substitute Products (very high): Apple’s operating system differentiation can command