CASE STUDY-APPLE MODEL:

Apple Inc. has achieved success as one of the most valuable companies in the world. Based on the below facts, perform a Five Forces analysis of Apple Inc. and conclude with sheds light on what the company does to ensure industry leadership despite the negative effects of external factors in the competitive landscape of the computer software and hardware, consumer electronics, and online digital content distribution markets. Established in 1976, Apple has succeeded to become a dominant competitor in the industry under the leadership of Steve Jobs. Here are some key elements to consider in evaluating the industry:

Apple has a strong brand name but its main competitors too: Samsung (Galaxy) and Google (Pixels), Microsoft that offer a range of similar or substitute products.

Apple, like its competitors count on a high number of suppliers which are made accessible by the efficiency of the global supply chain. Moreover, there is a high ratio of firm concentration to suppliers

Apple, Samsung, Google are among the big buyers of suppliers.

Apples products are of high quality and at the cutting edge of technology. Their software work only with Mac devices and are compatible with one another. Hence the

Large pool of loyal customers

To enter the industry requires high investment and technical know-how but several high-tech innovative companies are tackling the possibility to introduce products that could potentially compete with the current main players. The strong brand name could protect Apple in the short term but advancement in technological innovation could change the competitive landscape fast

Based on the Apple case above, perform an analysis based on the five forces of the competition underlining the key elements (two for each force) that define each force and concluding by STRONG FORCE, MODERATE FORCE or WEAK FORCE. In conclusion give one recommendation to Apple to preserve and /or consolidate its position in the industry.

Force 1- Direct competition:

Force 2-Substitute products:

Force 3-Threat of new entrants:

Force 4-Bargainaing power of the buyer:

Force 5- Bargaining power of the supplier:

Based on your analysis what are 2 forces that seem the most challenging for Apple. Justify your choice.