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  • Essay / Industry Analysis: Apple Computers - 1917

    Industry Analysis: Apple Computers1.Analyzing the computer industry from 1995 to 2005 seemed like analyzing a chest game between major competitors. The development is noticeable and the formation of different business strategies can be easily felt due to the different approaches to the industry movement that the companies had; some of them shaped him, others followed him, and some helped him grow. In order to be able to analyze the IT industry during the aforementioned period, we will consider the porter's five forces analysis, although static, it helps to improve the understanding of the context and conditions of it. Porte's Five Forces constitute the analysis of new entrants to the industry: the barriers that may arise and the rivalry this represents, the power of the supplier and buyer, and the threats of substitute products. With this in mind, in order to determine whether the industry is attractive or not, we need to understand the attraction of these forces and therefore the profit potential of such an industry. Since we are primarily interested in Apple computers, we will also alternate with the company's position and defense against these forces, providing a framework for recognizing the company's corporate strategy. In 1995, the computer industry was a relatively new industry with a history of only about 20 years, a considerable amount of time for a technology-based industry, but still not a mature industry. On the other hand, by 2002 the industry was poised to become a "$220 billion global industry", showing how "since its beginnings in the mid-1970s, the industry had experienced explosive growth" and presenting the industry as a very attractive industry with capacity for even more growth. Even with this growing strength, there were large economies of scale: if a new company were to enter this sector, it would face the cost disadvantage of not doing so at scale, as it would be competing with IBM and Microsoft, and even Apple on a large scale would be suicide. Subsequently, the industry is also characterized by high capital intensity, for the development of new products and new technologies, and an investment in R&D of approximately 500 to 700 million dollars, which represents in the case of 'Apple between 4 and 6% of investment income fluctuating throughout. over the years. On the other hand, in 2005, this capital-intensive industry transformed into