Which of Porter's Forces impact Apple's ability to remain competitive in the personal computer

industry?

Factors which affect competitive rivalry and profitability

Risk of Entry

Potential

Competitors

Economies of Scale

Brand Loyalty

Cost Advantage

Switching Costs

Gov't Regulations

Power of Suppliers

Power of Buyers

Substitute Products and

Complementors

1. Considering Apple's decision to design its own custom chips, what factors should determine

whether a company should manufacture or outsource its components?

2. Do you think Apple can continue to grow by developing breakthrough products that create new

markets, as it did with the iPod, iPhone, and iPad?

3. How would you classify Apple's products on a portfolio matrix?

High Market Attractiveness (Growth Rate) Low

High

Market

Profitability

(Profit

Margin)

Low

Invest for Growth

Milk / Sustain

Evaluate

Divest

4. What factors influence the choice of countries to which a firm might outsource its production?

What are the advantages and disadvantages to Apple of outsourcing its production to China?

5. Do you believe that Apple's secret pack with China was ethical? Why / Why not?

6. Is there anything that might cause Apple to shift production back to the United States?

7. What factors will help or impede Microsoft and Samsung to compete with Apple?

8. Assess the prospects for the global success of Apple Pay and the Apple Watch.