Apple's Industry Analysis Essay Example

EXECUTIVE SUMMARY Apple Computer history is full of highs and lows, which is what we would expect in a highly innovative company. They evolved throughout the years into an organization that is very much a representation of its leader, Steven Jobs. Apple made several hugely successful product introductions over the years. They have also completely fallen on their face on several occasions. In 1997 they struggled while Jobs was not a part of the organization. Apple reached a point where many thought they would not survive, (case study). Well, times changed. Less than 10 years later, Business Week ranked Apple as the top performer in its 2006 Business Week 50. Apple attributes their recent success to robust sales of iPod music players (32 million in 2005). They are optimistic about the economies of scope with media giants, such as Disney and Pixar. (Business Week) Apple rarely introduces a new type of product. Thus, instead of being the pioneer, they are experts in refining existing products. Portable music players and notebook computers are examples. Apple increases the appeal of these products by making them stylish and more functional. They now appear on the brink to make significant steps in the home computer market. Apple did create a total digital lifestyle whereby the home is a multimedia centre.

Introduction

This analysis of Apple Inc uses Porter’s five forces to examine the external environment; elements of a PEST analysis to examine the threat levels in Apple’s market environment and the SWOT analysis to examine Apple’s internal environment. Even though the analytical format is of various models, certain points are broken out for particular attention below.
First, in order to gain an understanding of the company’s macro environment, an understanding the nature of Apple’s business is examined. Apple is basically involved in two businesses: the computer market and the media and entertainment market. Its