Competitive Pressures of High Barriers to Entry in Apple Company
Apple Company is globally known for its high-end production of electronic devices such as mobile phones, computers, laptops, tablets and software. The company is majorly known for its technological advancement and unique to response software market needs. Other strengths include its creativity and innovative capacity, established supplier code of conduct, and also users find it easy to use its product. Apple company has also managed to form alliances with companies such as Sony, Philips and Motorola.
However, Apple company also experiences stiff competition from rival companies from the likes of Samsung, Lenovo, Huawei and Xiaomi in China. The company has received pressures from substitute products in the industry. For instance, the iPod was rivalled by Samsung, mp3 player and Sony mp3 player while IPad substituted by Samsung tab. Lastly, the iPhone faced similar technical similarities with Samsung Galaxy, Samsung Note, HTC, Nokia and Sony Erickson (Usman, Mohammd & Shabirr, 2015). The invasion of ‘substituted products’ equally presented high-moderate competitiveness within the industry against Apple Company.
On matters technological rivalry from other sellers, Apple company has managed to enjoy a well-diversified portfolio of technology-based products. Otherwise, the ability of the company to sell its hardware and software has made it hard for the user to synchronize and customize the software. At the global stage, the impact of a highly competitive market environment weakens Apple company dominance. Some of the depreciated growth include from 50% to 9% in America, 31% to 4% in Europe and 94% to 27% in Japan. Then again, the smartphone market has observed impulsive growth from other companies leading to 14% decline in Apple growth and Apple iPad growth demonstrated 13% while their competitors recorded 79% growth rate (Eve, 2016). Luckily, amid all competitive pressures from rival companies, Apple company still standouts to sell out its single line product.
On matter consumer preference, buyers will always go for the cheaper goods and services. Apple company is traditionally known to supply luxurious products. These scenarios have provided the likes of Samsung to produce moderately cheaper mobile devices to meet other consumer demand. The art of simplifying technological advancement by the rivals of Apple company has positioned it on a leveraged position.
As far as market entry is concerned, Apple Company focuses on one hand to produce products and services that provide a wide range of usage. The functions of smartphone devices from Apple Company are oriented to fit larger markets without segmenting its strategic marketing approaches (Eve, 2016). Functions such as computing, communications, entertainment preferences and information management have been made available by Apple company devices. Whereas, a company such as Samsung implements a segmented marketing approach implying that it looks onto aspects of geographical location, demographic make-up and psychographic characteristics. Samsung and other products present their product as a universal use by all society members bringing aspects of mainstreaming and inclusivity in cost and usage of the product.
The long-term dominance of Apple company, especially on mobile device production, is reducing in margin amid increase of new and customer friendly products in the market. Its frequent legal battle in the court in regards to copyrights infringements puts Apple company at the compromised situation. The mushroomed technological advancement in the mobile device industry has flooded easily affordable devices to unexplored market margins of Apple Company. However, Apple Company banks on its uniqueness in innovation and customer loyalty to penetrate the ever competitive market share.