Apple Analysis
Executive Summary
In week 8 of AMBA 640, we will be analyzing the Apple case located in chapter one of Management Information Systems: Business Driven MIS Inc from an information systems management perspective. Our analysis will look at some of the common tools used to analyze competitive intelligence such as Porter’s Five Forces Model, the three generic strategies for choosing a business focus and the value chain analysis. We will also discuss why and how data, information, business intelligence and knowledge are important to Apple. This analysis will also include how Apple identified areas where it achieved a competitive advantage using management information systems and why competitive advantages are temporary.
• Access to distribution channels. New entrants have to establish their distribution in a market with established distribution channels to secure a space for their product.
• Cost disadvantages independent of scale, whereby established companies already have product technology, access to raw materials, favorable sites, advantages in the form of government subsidies, and experience.
Apple charges a premium on the products that are available to consumers however, based on the barriers listed above, this price premium does not equate to a high threat level of new entrants to Apple. When the iPad 2 was launched in March 2011, it was estimated that 500,000 units were sold on the first day of availability. There have been many tablet competitors that came to market that year and Apple still retained almost 73% of the market share (Olenick, 2011).
Rivalry among Existing Competitors
Rivalry among existing competitors is considered to be high when there is strong competition in the same market. The life cycle in the technology sector is short and there are new products that come out every year. Apple stays ahead of the competition by developing products that exceed the needs of their consumers. The business strategy has kept them leaders in their sector for the past decade.
Customer Developed Applications and the Five Forces Model
Through its customer developed applications,