Product differentiation Essay

Within this time period there were a lot of mergers and acquisitions making rivalry amongst firms even greater as every time this occurred these merged companies would have more market share and more capital to help their equines. Threat of substitutes A lot of these products were similar in many ways and allowed consumers to do pretty much the same things. For example a Laptop had a camera as did an pad as well as a Ultra book, an phone and an pod.

All of these products could also go on the internet and have programs like Microsoft office. Competitors also had the same attributes so I would say threat of substitutes is high. Threat of new entrants Although there are many competitors in the industry I was say the threat Of new entrants is low. First the amount or capital that you will need to enter his industry is very high and without consumers knowing and trusting your brand there would be no way to compete with companies like Apple and Leno.

Bargaining power or buyers “Pc buyers fell into 5 categories home, small and medium sized, corporate, education and government” (Peg 5) later on bigger manufactures started to buy these products such as Cost, Best Buy and Walter. In turn this made the bargaining power of buys high because there were so many substitutes and many places where you could purchase them. However it is to be noted that Apple started to have really loyal customers which made the price inelastic as consumers would begin to pay anything for a new Apple product.

Bargaining power of us pliers ” Suppliers were divided into 2 groups those that made products such as chips, disks and drives and keyboards with many sources and those that sold products like microprocessors and operating systems which had a few sources” (Peg 6) Even though the second first category had many suppliers they still had high bargaining power as the had extremely competitive prices. The second category had even more bargaining power as only 2 firms were supplying those parts. Industry attractiveness

Overall the industry is very unattractive with rivalry, bargaining power of buyers and suppliers being high as well as threat of substitutes. I would not suggest entering this industry. Also if you just look at how many different Coo’s Apple had and what a struggle they had one can easily see that this is a brutal industry. Question 2 Apple went through several different strategies the rough its lifetime. Just to name a few Apple went through a low cost strategy with Sculls, (Peg 2) then a price differentiation strategy with Gilbert Amelia.

Currently feel that Jobs has implemented a product differentiation strategy. Job was so serious about being original he even created dummy positions for new recruits until they could be trusted (Peg 4). His products and software was to be kept hidden until realized to the public, as well as Jobs did not want to license any of his software of products to anyone else. Question 3 Resource Apples operating system is a great resource as it allows all of Apples products to be intertwined with one another.

What mean by this is that you can easily share pictures, music and documents amongst almost all Apple products. Since apple has a pretty big product line ranging from watches to computers t allows the average consumer to have every part of their life to be integrated with easy to use interfaces. Not only is this very Valuable to the company but it was very rare, there’s is no other company out there that has integration amongst almost all their products like Apple does.

However this is easily imitable if one were to want to develop an entire product line. This resource does provide a competitive advantage as no other company currently has such integrated products. However it may not be sustainable In the future as it’s easily imitable. Resources One of Apple?s main resources is its brand. Apples brand is everything in the industry that it competes in. People know and trust apple and have brand loyalty like no one else.