Analyze the Strategies of Apple

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The fourth one is Threat of new entrants, according to Low and Pittaway (2008)suggests it means when Apple growth quickly, there occurs lots of new entrants, selling the lower price of product to hold part of the market, such as Nexus smartphone. This kind of new companies influenced Apple a lot. Hence, the managers should take more attention on this part.

Finally, threat of substitute products have some common element with the new entrants, selling the similar products as Apple to give press to them. However, the substitutes have some limitation, leading the consumers return to Apple’s products which is more advance. Therefore, Apple should be more careful when create new products.

Apple’s Eco-system

Based on the analysis of Competition Advantage and Five Forces, it is definitely to say that Apple has its own strategy which others cannot follow. This is because of Eco-system, which own by itself—- IOS. Also, customers can found that Apple has it own technique in exploiting products. See Fig 3. [pic 4]

(Fig 3: Google,2015)

Fig 3 shows the information of Apple’s finance statement from 2011 to 2015. To have a quick look at the picture, it growth up step by step with nearly stable cost. In 2012, Apple has a low profit compared with other years, seeing the profit margin. The reason is that in this year, the company transferred from beginning to maturity by improving its technology of products. Another reason is that its manufactory: Foxconn occurs a series of employee’s issues which bring a bad imagination on Apple. Duo to these two factors, Apple lose some of its customer, and this is why the profit margin and operation margin is higher. However, in 2015, this firm push out the new product which named Apple Watch. This catches people’s eyes all over the world and ,meanwhile, it developed the new smartphone which is a bit different from former ones. Hence, it revenue raised rapidly.

Additionally, the most important reason that Apple can win the loyalty from customer is that all of its products can be linked together. For example, when a person owned a computer from Apple, it can connect with its iPhone, after he or she owned iPad, these three product can be linked, when somebody calling, people can choose use phone, computer or iPad to answer, the same with other products. This is other brand of smartphone company could not do. Also, the system:IOS is just for Apple which others have not gain, so that Apple can create own App, Games or products like Apple TV, combining them together. From the research, over 70% customers prefer using fine feature and seamless access when choosing the smart products. The system can drives people to be loyalty strongly, which is why Apple being so successfully in the world(Nielson, 2014).

Conclusion

To sum up, based on the above discuss and explanation, it is easy to say that Apple’s successful owe to its good control of strategy and have a crazy innovation for investing Eco-system which driver others away from the market.

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