Market Analysis of Apple Inc.

RUNNING HEAD: MARKET ANALYSIS
FUNDAMENTALS OF MARKETING

MARKET ANALYSIS 1
Contents
Introduction................................................................................................................................2
Company overview................................................................................................................2
Market analysis..........................................................................................................................2
Internal environment (Micro).................................................................................................2
External environment (Macro................................................................................................4
Market segmentation..................................................................................................................5
Current market position..............................................................................................................6
Positioning strategies.............................................................................................................7
Conclusion..................................................................................................................................7
Bibliography...............................................................................................................................9

MARKET ANALYSIS 2
Introduction
The research report focuses on the market analysis of ‘Apple’. A market analysis is a
quantitative and qualitative assessment of a market. It looks into the size of the market both
in volume and in value, the various customer segments and buying patterns, the competition,
and the barriers to entry and regulation (Winston et al., 2013).
The report initiates by providing a brief overview of Apple Inc. The second section
emphasizes on the micro-environmental analysis of Apple by using porters five-force model.
It also includes the macro-environmental analysis through PESTLE model. The succeeding
part comprises of market segmentation by considering IPhone. The report also provides a
brief insight of market position of Apple Inc. in Australia. The key purpose of the report is to
gain knowledge by applying marketing model on a real life company.
Company overview
Apple Inc. is a multinational business enterprise founded by Steve Jobs in the year 1976 in
California, United States (Cribbin , 2019). It has 506 retail stores in 24 countries including
United States, India and China (Macrumours , 2019). In Australia, it has around 24 stores
including Sydney (Chester , 2015). Besides physical stores, it also serves its customers via
digital channels (Mukherjee & Anand , 2019). It forms the part of manufacturing industry. It
is engaged in the production of wide variety of products such as I Phone, Watch, TV,
Macintosh, Mac computer and IPod (Apple, 2019). It is recognized brand with 588 million
apple users in the worldwide (Macflypro, 2019). The major source of sale for the brand is
iPhone, with 8.6 million Australian users (Thenewsdaily, 2018).
Market analysis
A market analysis is a process of gathering information about a market within an industry. In
order to analyse the market of Apple Inc., both internal and external environment has to
consider (Winston et al., 2013).
Internal environment (Micro)
The internal environment analysis of a brand assists in determining the resources,
competencies and competitive advantages. It also helps in knowing the possible strengths and
weaknesses of a business enterprise in an industry (Munizzo & Musial, 2010). Following are

MARKET ANALYSIS 3
the points describing the internal analysis of the Apple Inc. through the usage of Porter’s five-
force model.
1. Industry rivalry: It determines the level of competition prevailing in the industry
within the existing firms (Porter, 2017). Apple Inc. faces low competition in the
market. This is because there are few competitors for Apple Inc. like Samsung and
Microsoft (Owler, 2019). Additionally, its products like ‘IPhone’ are highly
differentiated in its features and functions in comparison to Samsung and Microsoft
products (Fullsacle, 2019).
Figure 1: Apple Inc. major competitors
Source: (Owler, 2019)
2. The bargaining power of the customer: It focuses on the customer power to drive
down the price (Porter, 2017). Apple Inc. customers attain low bargaining power. This
is because a high strength of customers exists in Australia. Additionally, they are less
sensitive to product price (HKTDC, 2019). Moreover, there are less renowned
substitutes including Samsung and Microsoft (Owler, 2019).
3. The bargaining power of the supplier: It emphasizes on the supplier power to drive
up the price (Porter, 2017). Apple Inc. suppliers attain low bargaining power. This is
because there are few buyers in the market. Example, IPHONE uses the software
named ‘IOS’ whereas competitive brands like Samsung relies on ‘Android’ software.
Therefore, only IPHONE uses IOS version (Apple , 2019). Therefore, its software
suppliers have only Apple Inc. as its customers leading to low bargaining power.
4. Threat of new entry: It determines the risk possibility of a firm from the entry of
new firm in the market (Porter, 2017). The Apple Inc. attains intermediate threats