Q1) What historically have been Apple’s competitive advantages?












Premium price differentiation strategy
Industrial design
Technical elegance
Innovation
Easy to use and good user experience
Complete desktop solution
Extreme practices of secrecy- closed door policy
Multimillion dollar marketing campaign including catchy slogans
Energy efficient and recyclable line of notebooks
Strong distribution system - retail
Digital hub
Launched an App store which made it easier to distribute, access and
download apps

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 PC’S 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.

Apple didn’t have the bargaining power Apple was freely advertising for Intel. premium price differentiation category. and Intel was getting more highlighted . Rivalry within the industry Presence of brands such as Lenovo. assembled by local entrepreneurs Conclusion. Which accounted for 53.6% within a span of 3 years Could natively run Microsoft Windows along with Windows applicationmajority of computers were using Windows.Windows more preferred as it is more user friendly Conclusion. increasing the competition within the industry In software industry. So threat of substitutes is high. HP .6% of worldwide shipments.Threat of new entrants: White box channel. thus. offered lower price products thus. it provided an additional functionality Cons - Intel had more power as a a supplier..Due to intensive competition.96% to 2.featured generic machines. Dell. identifying the consumer needs. Acer etc. Q3) How sustainable is apple in pc Apple moved to Intel that has certain pros and cons It is sustainable because it is continuously innovating new product. Ans: Pros: - Incorporation of Intel made Mac computers faster and energy efficient Market share increased from 1.anyone can assemble the product and target the consumers by providing low cost alternatives Threat of substitutes For the PC industry. These substitutes have impacted the sales of PC. It is also recognizing the substitute products that could take its place and is foraying into those areas. rivalry was high.EASY to enter the market. UNIX. substitutes would include tablets. smart phone etc. had competition from Windows OS. thus.