Prepared by Working Group Z1, TAPMI, Manipal

Prepared by Working Group Z1, TAPMI, Manipal

Bowmans Strategy Clock

Apple has High price and high perceived value to the consumer

Apple operates on a strategy of focussed differentiation

Prepared by Working Group Z1, TAPMI, Manipal

Premium products high pricing strategy

Porters Five Forces

1. Rivalry among existing competitors

. Many competitors, ex. Google, Samsung, Amazon

. Alternatives exists for existing Apple products like iPod,
iPad, iPhone
. High customer loyalty

2. Threat of new entrants

.
.
.

Expensive to enter this industry

Economies of scale required
Highly valued existing competitors

3. Threat of substitutes
.
.

Cross-product substitution available

Emergence of low-margin players

4. Supplier power
.
.

Low supplier power

Apple can switch suppliers

5. Buyer Power
.

Low buyer power, Apples image as a premium product

Prepared by Working Group Z1, TAPMI, Manipal

VRIO Analysis
Resource

Value Rarity

Inimitability

Organizatio
n

Human
Capital
Operational
Efficiency

Meaning

Implications

Valuable, rare and costly to

imitate

Sustained competitive
advantage

Valuable, rare and costly to

imitate

Sustained competitive
advantage

Customer
Service

Valuable, rare but not

costly to imitate

Temporary competitive
advantage

Marketing &
Advertiseme
nt

Valuable, rare but not

costly to imitate

Temporary competitive
advantage

Valuable, rare and costly to

imitate

Sustained competitive
advantage

Innovation
& Design

Prepared by Working Group Z1, TAPMI, Manipal

Alternatives
1.

Carrier Tie Up

Apple has increased competition in the markets of China and Brazil where
the iphone is still considered as a luxury.

A carrier tie up model as in the US will provide Apple the reach and will also
benefit consumers as they can avail phones at subsidized rates.

China Mobile 250 million 3G/4G users huge base waiting to be tapped

Prepared by Working Group Z1, TAPMI, Manipal

2.

Apple Pay

A technological leap which will enable further strengthening of the Apple

ecosystem.

As more payments will be routed through Apple pay which will help Apple
expand into further new services

This will help them compete against Google Wallet

Prepared by Working Group Z1, TAPMI, Manipal

3.
.
.
.
.

Car Play

Helps Apple compete against Android in the auto entertainment space

Another spoke in the ecosystem wheel
Tie ups with major manufacturers such as Mercedes, Audi, BMW, JLR
Provides seamless experience across more devices

Prepared by Working Group Z1, TAPMI, Manipal