Apple
It is not difficult to enter the industry because the entry barriers are high. Threat of new entrants to Apple is low because it may affected by magnitude of entry barriers, such as
1. Advanced technologies requirements
Advanced technologies make new competitors more difficult to enter the market which Apple enjoys a slight advantage here because of Apple have a lot of experience in creating software and hardware. New competitors have to develop those technologies before effectively competing. And for new competitors are less likely to have this advantage. The requirement of advanced technologies positively affect apple. 2. Patents limit new competition
Patents that cover vital technology make it difficult for new competitors. Apple has the best-designed hardware from an aesthetics point of view of any other competitors, but the best methods are patented. For example, Apple applied and was granted a patent for one of the Apple product- iPhone, which may help keep future competitors from emulating their patents and of course it positively affect Apple.
3. Economies of Scale
Economies of scale help Apple to lower their cost by producing the next unit of output at lower costs. With that many devices sold, Apple has certainly been able to maximize their use of economies of scale and lower their average cost per unit. When the new competitors enter the market, they will have a higher cost of production, because they have smaller economies of scale. Economies of scale positively affect Apple.
4. High learning curve
When the learning curve is high, new competitors must spend time and money studying the market before they effectively compete. High learning curves positively affect positively for Apple.
5. Strong distribution network required
Strong Distribution channel are a major key to success, which are maximizing sales and profits. Apple did a great job on expanding its stores to increase its revenue and brand awareness. One of the successes of
1. Advanced technologies requirements
Advanced technologies make new competitors more difficult to enter the market which Apple enjoys a slight advantage here because of Apple have a lot of experience in creating software and hardware. New competitors have to develop those technologies before effectively competing. And for new competitors are less likely to have this advantage. The requirement of advanced technologies positively affect apple. 2. Patents limit new competition
Patents that cover vital technology make it difficult for new competitors. Apple has the best-designed hardware from an aesthetics point of view of any other competitors, but the best methods are patented. For example, Apple applied and was granted a patent for one of the Apple product- iPhone, which may help keep future competitors from emulating their patents and of course it positively affect Apple.
3. Economies of Scale
Economies of scale help Apple to lower their cost by producing the next unit of output at lower costs. With that many devices sold, Apple has certainly been able to maximize their use of economies of scale and lower their average cost per unit. When the new competitors enter the market, they will have a higher cost of production, because they have smaller economies of scale. Economies of scale positively affect Apple.
4. High learning curve
When the learning curve is high, new competitors must spend time and money studying the market before they effectively compete. High learning curves positively affect positively for Apple.
5. Strong distribution network required
Strong Distribution channel are a major key to success, which are maximizing sales and profits. Apple did a great job on expanding its stores to increase its revenue and brand awareness. One of the successes of