Industry Analysis: Apple Computers Essay

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Pages: 8

Industry Análisis: Apple Computer

1. Analyzing the computer industry from 1995 to 2005 seemed to be like analyzing a game of chest between the major competitors. The development is noticeable and the shaping of different corporate strategies could be sensed easily thanks to the different approaches toward the movement of the industry that the companies had; some of them shaped it, some followed it and some helped it grow. In order for us to analyze the computer industry during the up said time period, we will consider porter's five forces analysis, though static, it helps improve one's understanding of the setting and the conditions of such. Porte's five forces constituted the analysis of the new entrants to the industry as the
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Government and education represented around 8% of the PC market, but Apple's presence in this segment was powerful. Finally, home buyers were the most price-sensitive, they represented 32% of the industry and were mainly targeted by IBM and other manufacturers even though Apple had always intended to have more share in this market but still has not had a representative one. Apple's main issue is targeting and concentrating on its core buyers, but essentially, buyer's power is relatively low for this industry.

To rap up into our five forces, we have to consider now the substitute products to the PC or alternative technologies. According to Yoffie and Wang, "a number of analysts believed that PCs had reached the end of the line" , some substitutes considered were the network computer, hand held PDAs, smart phones, TV set-top boxes and video game boxes, still, only the network computer could represent a threat, but still this can be viewed more as a development of the industry than a threat for most of the companies which produced, manufactured and distributed PCs are the same companies that follow the network computer. As far as PDAs, TV boxes and video game boxes, it doesn't seem like these products could be so much of substitutes but more of complements.

Concluding, the main entry barriers that can be considered is the economies of scale and the great cost that could be enquired on for not been able to come in through large