Introduction: Hà Vi

A product manager at Apple examines the past, present, and future of the PC industry in
September 2011 in the wake of Steve Jobs's resignation and HP's announcement that it was
exiting the PC industry in favor of enterprise software solutions and consulting. The
protagonist thinks through current forces in the PC industry, including market share trends,
mobile computing, ultrabooks, and cloud computing services-as well as the position of the
Mac in Apple's product portfolio-and is faced with making a decision about the future of the
Mac.

Event timeline:
- 1975: The introduction of the Altair 8800
- 1981: The release of the IBM PC
- 1985: Steve Jobs was asked to step down as CEO
- 1997: Steve Jobs back to CEO
- 2001: Apple introduced iPod
- 2007: iPhone
- 2010: iPad
- 2011: Steve Jobs resigned

SWOT: Tú Trang

STRENGTHS WEAKNESSES
- Apple has been a pioneer in the PC - Apple products have high prices and
industry, always innovating and cannot reach customers with limited
prioritizing aesthetics in its products budgets, so the niche market share in
(mouse, windows, Firewire the PC market is always below 5%
connectivity, Thunderbolt) of devices sold.
- Apple prioritizes building - Apple still depends on this important
easy-to-use, user-friendly products component supplier despite
across hardware and software. switching to Intel processors.
Besides, Apple also focuses on a - Apple focuses on its operating
differentiated product, providing a system and software creating a
vertically integrated system with its closed ecosystem, not all software
operating system and software. applications are compatible with
- High-quality products have helped Mac OS.
Apple build a loyal customer base - Apple's dependence on sole leader
willing to pay a premium. Steve Jobs: Apple had difficulty
- Retail stores offer unique, distinctive finding its footing and was in danger
customer experiences that contribute of collapsing 12 years after Steve
significantly to Apple's revenue Jobs resigned in 1985.
(which has increased steadily over
the decade).

OPPORTUNITIES THREATS
- The mobile computing device - The decline of PC giants like HP
 market is proliferating, Apple is in a leaving the market raises questions
favorable position to take advantage about the future of PC usage.
of the trend: integration with iPhone - Despite its strengths, Macs still hold
and iPad mobile devices. a small share of the overall PC
- Cloud computing can bring new market compared to Wintel-based
opportunities for Apple to provide machines.
software and services, and Apple - Consumer trends toward tablets and
can continue to differentiate itself ultrabooks could affect traditional
with a superior user experience. PCs in general and Macs in
- Ultrabooks have become an particular
attractive option for consumers who - Google's cloud-based approach and
want the functionality of a full open standards (Chrome OS and
keyboard, but the portability of Android OS) could appeal to
tablets has allowed Apple to increase consumers, significantly threatening
its market share (Macbook Air). Apple.

5 forces: Thuý Hiền

1. Threat of New Entrants
High

Economies of Scale: Apple has significant economies of scale in production,

marketing, and R&D.
Brand Loyalty: Apple has a strong brand identity and customer loyalty, making it
difficult for new entrants to attract customers.
Capital Requirements: High costs associated with establishing manufacturing
facilities, supply chain logistics, and R&D investments.

2. Bargaining Power of Suppliers

Moderate to Low

Component Suppliers: While Apple relies on key components from suppliers (e.g.,
Intel for processors, and other specialized components), its large volume of orders
provides it with negotiating leverage.
Supplier Concentration: Apple sources components from multiple suppliers, reducing
dependency on any single supplier.

3. Bargaining Power of Buyers

Moderate

The unique features, design, and ecosystem integration of Apple goods, their devoted
client base is less sensitive to pricing.
Product Differentiation: Apple differentiates its products through design,
functionality, and ecosystem integration, which reduces price sensitivity among loyal
customers.
 Switching Costs: While switching to another brand can be easy for some users, the
integrated ecosystem (macOS, iOS, iCloud, etc.) creates some level of switching cost.

4. Threat of Substitute
High
The rise of tablets, smartphones, and other mobile computing devices, including many
produced by Apple, poses significant substitution threats to traditional PCs and
laptops.
Alternative Devices: With the rise of tablets, smartphones, and other mobile
computing devices (many of which are also produced by Apple), traditional PCs and
laptops face significant substitution threats.
Technological Advancements: Continuous improvements in mobile technology make
these devices more capable substitutes for traditional PCs in many use cases.
5. Industry Rivalry
High

Key Competitors: Major competitors in the PC market include Dell, Lenovo, and
Microsoft, all vying for market share in a mature industry.
Price Competition: While Apple maintains premium pricing, other competitors often
engage in price wars, which can pressure Apple's market share and profitability.
Innovation and Differentiation: Apple competes through constant innovation and by
maintaining a differentiated product offering that commands a premium price.

https://panmore.com/apple-inc-five-forces-analysis-porters-model-case-study
https://research-methodology.net/apple-porters-five-forces-analysis-3/

Pestel: Hồng Quân

Political factors:
The political factors in Apple’s remote or macro-environment mainly present
opportunities. This aspect of the PESTLE/PESTEL analysis model indicates the
influence of governments and related organizations on businesses. In Apple’s case,
the following are some of the major political factors:

1. Improving free-trade policies (opportunity)

2. Stable politics in developed countries (opportunity)
3. Trade disputes, especially between the U.S. and China (threat

Economic factors:
Many of the external factors in Apple’s remote or macro-environment create
economic opportunities. This aspect of the PESTLE analysis model indicates market
and industry conditions that impact firms. In this external analysis case of Apple Inc.,
the following economic factors are the most significant:
 1. Stable economies of developed countries (opportunity)
2. Rapid growth of developing countries (opportunity)
3. Unstable disposable incomes among target customers (threat)

Social factors:
Apple’s business is subject to the effects of social or sociocultural trends. This aspect
of the PESTLE/PESTEL analysis model points to the social factors that influence
customer behaviors and expectations. In Apple’s case, the following sociocultural
trends are significant in the remote or macro-environment:

1. Rising use of mobile access (opportunity)

2. Increasing dependence on digital systems (opportunity)
3. Anti-Apple sentiments (threat)

Technological factors:
The external factors in Apple’s remote or macro-environment provide technological
opportunities for the enterprise. In this aspect of the PESTLE analysis framework,
current technologies and technological trends are evaluated based on their effect on
businesses. In Apple’s external analysis case, the following technological factors are
the most significant:

1. Growing demand for cloud computing (opportunity)

2. Increasing technological integration in businesses (opportunity)
3. Growing mobile market (opportunity)
4. Growing technological capabilities of other firms (threat)

Environment factors:
The ecological factors in Apple’s remote or macro-environment provide opportunities
for business improvement. This aspect of the PESTLE/PESTEL analysis model
highlights ecological trends and their impacts on business. In Apple’s case, the
following ecological factors are important:

1. Business sustainability trend (opportunity)

2. Energy efficiency trend (opportunity)

Legal factors:
The external factors in Apple’s remote or macro-environment create legal and
regulatory threats to the business. This aspect of the PESTLE analysis framework
indicates the impact of laws or regulations on businesses. In Apple’s case, the
following are significant legal factors:

1. Increasing privacy regulations (opportunity & threat)

 2. Legal challenges against Apple’s policies and practices, especially after-sales
service and repair (threat)

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Capabilities Analysis ( Đình Thi)

Apple's Capabilities Analysis

Innovation and Design

-Commitment to Innovation: Apple has introduced significant advancements such as the
mouse, windows interface, and high-speed data transfer connections (Firewire and
Thunderbolt).
- User-Centric Design: Apple's products are designed with user experience in mind, ensuring
ease of use and aesthetic appeal.

Vertical Integration
- Proprietary Systems: Apple develops its own operating systems and software, ensuring
seamless integration and high-quality user experience.
- Consistent Strategy: Despite lower market share compared to Wintel-based machines,
Apple's vertical integration has allowed it to maintain a distinct market position.

User Experience and Reliability

- Ease of Use: Macs are known for their user-friendly interfaces and low risk of viruses.
- Proficiency in Multimedia: Apple's reputation for graphics and multimedia applications
makes it a preferred choice for media professionals.

Market Position and Strategy

- Niche Market Focus: By avoiding the Wintel platform and later incorporating Intel
processors, Apple has carved out a niche in the high-end market.
- Avoiding Commodity Competition: Apple’s strategy has focused on high-end, premium
products, avoiding direct competition with lower-end PC manufacturers.

Financial Strength and Strategic Investments

- Liquidity Reserves: Apple's significant cash reserves provide flexibility for investments in
new technologies and product development.
- Ecosystem Expansion: Strategic initiatives like iCloud enhance Apple's ecosystem and
competitive positioning in the cloud services market.

Strategy Map: Minh Thư

Finance:
- Apple has been able to command large price premiums for its desktop and laptop
computers, the Mac line, despite being a niche player in the overall PC market.
- The success of products like the iPhone and iPad have contributed to Apple's strong
financial performance.

Customer:
- Apple has a dedicated following for its Mac computers, with certain industries like
advertising, video production, arts, and education relying heavily on Macs.
- The iPhone and iPad have allowed Apple to advance and refine the form and function of
personal computing, transforming the PC into more of a "fashion accessory."

Process:
- Apple has been a pioneer in the personal computer industry for over 30 years and has been
at the forefront of high-quality computers for work and home.
- The release of the iPad has had a significant impact on mobile computing, winning over
laptop users, business users, and those looking for a more compact device.

Learn and Develop:

- With the resignation of Steve Jobs as CEO, there are questions about how the Mac will fit
into Apple's expanding suite of products going forward.
- The case study suggests that personal computing may take new forms in the future, and
Apple will need to continue innovating to stay ahead of the competition.

Conclusion
Apple's Mac line faces competition and needs to adapt for the future. New tech,
user-friendly features, and a focus on how Macs work with iPhones and iPads are all
crucial. Cloud storage with iCloud needs to be competitive, and Apple must decide if
Macs are for high-end users or a wider market. By innovating and making Macs work
seamlessly with other Apple devices, Apple can ensure the Mac's future success

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