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Q2) Analyze the personal computer industry. Are the dynamics of pc industry
favorable or unfavorable for apple?
Bargaining power of suppliers
Suppliers were divided into 2 categories
1) Those who made the products with many sources- bargaining power is low
2) Microprocessors and operating systems that had few sources- bargaining power
is high
Conclusion- most of the suppliers have low bargaining power except Microsoft and
Intel
Bargaining power of buyers
B2B
Corporate and medium-sized enterprises buy products in large volumes
Business consumers had a high need of service and support
B2C
IBM dropped prices to very low levels and made Apple PCS looked exorbitantly
high
They had options of lower priced products, which satisfied their needs
How knowledgeable they are about the products
Buyers value design mobility and wireless connectivity
CONCLUSION- There was high bargaining power in the hand of buyers as they
had a multitude of products to choose from.
Ans: Pros:
-
Cons
-
Intel had more power as a a supplier, thus, Apple didnt have the bargaining
power
Apple was freely advertising for Intel, and Intel was getting more highlighted