Which of Porter's Forces impact Apple's ability to remain competitive in the personal computer industry? Factors which
Question:
Which of Porter's Forces impact Apple's ability to remain competitive in the personal computer
industry?
Factors which affect competitive rivalry and profitability
Risk of Entry
Potential
Competitors
Economies of Scale
Brand Loyalty
Cost Advantage
Switching Costs
Gov't Regulations
Power of Suppliers
Power of Buyers
Substitute Products and
Complementors
1. Considering Apple's decision to design its own custom chips, what factors should determine
whether a company should manufacture or outsource its components?
2. Do you think Apple can continue to grow by developing breakthrough products that create new
markets, as it did with the iPod, iPhone, and iPad?
3. How would you classify Apple's products on a portfolio matrix?
High Market Attractiveness (Growth Rate) Low
High
Market
Profitability
(Profit
Margin)
Low
Invest for Growth
Milk / Sustain
Evaluate
Divest
4. What factors influence the choice of countries to which a firm might outsource its production?
What are the advantages and disadvantages to Apple of outsourcing its production to China?
5. Do you believe that Apple's secret pack with China was ethical? Why / Why not?
6. Is there anything that might cause Apple to shift production back to the United States?
7. What factors will help or impede Microsoft and Samsung to compete with Apple?
8. Assess the prospects for the global success of Apple Pay and the Apple Watch.
Auditing a business risk appraoch
ISBN: 978-0324375589
6th Edition
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston