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Microsoft PowerPoint Business Strateg
Apple Inc. in 2010
Stragegy and Structure_ Nov.18, 2014

Content
Industry Introduction
Strategy Analysis
Recommendation

Industry Introduction

Industry Introduction
- Smart Phone Industry
Supplier
- Low bargaining power

Buyer

Substitute

- Booming market

- Difficult to find substitute

- High price elasticity
- Low switching cost
- Certain brand royalty (for Apple users)

New entrant
- Certain requirement of technology and

investment

- Networks/Carrier barrier
- Certain local policy incentives
11/26/2014

Existing competitor
- Heavy competition (Nokia, Motorola and Samsung with market share of 60%)
-Low product life cycle(6-9 months)
- High product differentiation
(platform/system, business model)
- White-box phones

4

Industry Introduction
-PC Industry
Supplier

Buyer

- High bargaining power for microprocessor supplier

Substitute

- Booming market

- Low bargaining power for accessories

- Certain substitutes: Play station, smart phones and so on.

- High price elasticity
- Low switching cost
-Certain brand royalty (for Apple users)

New entrant
- Substantial requirement of technology and investment
- Certain policy incentives

Existing competitor
- Heavy competition
- Many players
- Product differentiation
- Driven by price and functions
- White-box PC

11/26/2014

5

Industry Introduction
-Industry Analysis

Smart
Phone
PC

Supplier

Buyer

Substitute

New Entrant

Current Competition

√

≈

√

≈

≈

≈

≈

≈

• The comparison is based on the situation around 2010. When Apple entered smart phone industry, the situation was different from the aspect of entry barrier and Buyer.
• Standing in the shoe of Apple, these two industries share a lot of similarities, and advantage of
11/26/2014
Smart Phone industry is not really substantial.

6

Strategy Analysis
-SWOT analysis
S

Strengths

O

Opportunities

cutting edge technology, multiple usage product
Locking AT&T
Premium price
Revenue sharing and subsidy with mobile phone operators • Integration with
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