Apple Computer 1999 .
The entrance barrier is low due to standardized products, only moderate capital .
requirement, and well-spread technologies. In addition, PC companies face strong bargain power from both .
suppliers and buyers. Intel and Microsoft dominate the supply of microprocessors and operating system (OS) and .
affect the production cost. Buyers are knowledgeable in technologies and are price sensitive. Meanwhile, consumer .
electronics and telecommunication products are intending to perform all the functions that PCs have. Application .
software served as complements usually determines the success of products. Currently, most of the software are .
designed for Windows. .
Apple's Valuable Resources and Capabilities .
Apple has advantages when facing entrants, suppliers and substitute. .
?Brand. Apple's brand name Brand name can serve as a guarantee on technologies and services to consumers and .
deter entrants. It is useful especially when companies are now using sophisticate technologies in products. .
?Strong R&D. Apple has developed R&D ability in developing their own OS, thus it faces less bargain power .
from suppliers. Besides, it also helps other software companies develop iMac compatible software, which .
contributes to build full products and services line for iMac. .
?Graph and image processing ability and innovative design. Apple takes lead in graph and image processing .
technologies and innovative, user-friendly design. These abilities help Apple meets the huge demand of graphic .
technologies embedded in PCs in the coming 3C era. Such abilities can also help Apple move toward consumer .
electronics markets. .
Hurdle to Apple .
Apple faces threats from rivals, buyers and complements. .
?Price competition and trends of low-priced computer. Since buyers are price sensitive, price competition is .
severe. Every company provides low-priced computers, price for products drops sharply soon after they are .
