YSI S

NAL
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-Aditya, Devarsh,Foram , Jonty

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Sources: www.ibef.org 4
 5 FORCES ANALYSIS
ABOUT COMPANY
April 1st,1976 - Founded

January 3rd,1977 - Incorporated

Headquarters - Cupertino, California

Co-founders - Steve Jobs, Steve Wojniak

CEO - Steve jobs

Industry - Computer software, computer hardware, consumer electronics.

Revenue - US$ 19.3 Billion

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Sources: Mc Kensey report
 PRODUCTS AND FIGURES
Hardware - Mac(personal computer series),Apple Remote
Desktop

Software - Mac OS X, Mac OS X Server ,Quick Time, i Life, i

Work, Logic pro, Cinema Display etc.

Consumer Electronics - i pod, i pod hi-fi, i phone, Apple TV

Employees - 19,787 full-time ; 3,399 temporary (March

31,2007)

Retail stores - 183( 1st in Manhattan, New York)

Competitors - HP, IBM, DELL

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Sources: www.apple.com
 5 FORCES ANALYSIS
PRODUCTS

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 New Entrants
Threat of new entrants

Bargaining power of the suppliers

Existing
Supplier rivalry in the Customer
industry
Bargaining power of buyers

Substitute products & services

Substitutes
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 EXISTING RIVALRY
Windows OS and media player for playing music and
video ( Microsoft)

Competition to Mac OS X (Linux)

Alternate sources of computer hardware (Dell, HP,

Lenovo)

Small stylish MP3 players (Creative, Samsung, Sony)

Online music stores similar to itunes stores (Napster)

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 THREAT OF NEW ENTRANTS
Streaming audio and video with v-cast (Verizon)

On demand online services (similar to i-tunes)

New entrants with disruptive technology (The “next

google”)

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 BARGAINING POWER OF SUPPLIERS
Suppliers of processors and computer memory
(Motorola, IBM, Intel)

Strategic alliance/supplier of Mac (Microsoft)

Supplier of tv and movies (Disney, ABC, Fox, Sony)

Sources of music (BMG, Sony, Warner, Universal)

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Magazine :outlook (April-2009)
 BARGAINING POWER OF CUSTOMERS
Customers share music using peer-to-peer networks
without paying for music (Ares, Limewire)

Retailers may pressure for lower prices or better terms

(Distributors)

Consumers/Businesses may reduce spending on

computers if they fear economic downturns (Consumer
Attitudes & Behaviors)

Consumer Refresh Cycles

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Sources: Harvard Business review
 THREAT FROM SUBSTITUTES
Satellite radio for music (XM, Sirius)

Entertainment media, media and music (XBOX, PS2)

Alternative means to acquire music (Music CDs,

DVDs)

Alternative sources for videos (Cable, Broadcast,

Theatres)

12/07/2021 Magazine :PC-1 (April-2009) 13

 RECOMMENDATIONS
FOR COMPANY:
Lowering the cost of products and maintaining the same quality
standards

Can form joint – ventures

Knowledge Management

More number of retail stores for easy access

Continuous innovation to expand

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 5 FORCES ANALYSIS
RECOMMENDATIONS
FOR OTHERS:
Do not compromise on price for quality

Choose the products based on individual needs

Be unique and different

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 YO U
A N K
T H
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