Apple's Ipad Case Study

Summary

Apple’s iPad initially started as just another tablet entering the market however; the tablet has many more capabilities than an ordinary tablet and is becoming a disruptive technology for the media and content industries. With the iPad a consumer can now watch TV from their tablet and download music or games. An iPad user can also download a book, newspaper, or magazine straight from the device and read it without leaving their home. Media industries have already had to rethink its business strategy so they can somehow be incorporated with the success of the iPad.

Publishers are now putting more effort into creating more revenue through e-books but there has been a struggle for publishers to make a profit since Amazon attempted to force publishers to lower prices of e-books. Publishers had to refuse to supply Amazon in order to have them rethink the stipulations they were placing on publishers. Many publishers would like to be able to establish a relationship with Apple as well to be able to have their e-books available on the iPad. There is already software that has become available on the iPad which is making this possible for publishers.

Apple is looking to expand capabilities with television network availability on the iPad as well for a monthly fee. This will then prove a threat to cable and satellite providers but media networks have not been interested in this type of relationship with Apple at this point. With the growth of the iPad this most likely will be an option in the future. Apple is continuously looking to make the iPad different than the usual tablet therefore making it more desirable to consumers and maintaining product loyalty.

Question #2

Number#1

Suppliers Bargaining Power is minimal. Apple is such a well-known company that it is not hard for them to find a supplier to work with them as well as provide reasonable prices. If suppliers have higher prices this reduces profit for Apple and raises costs for consumers.

Customers Bargaining Power is high. Apple makes products for the customer and they can determine whether they will buy it at the current price offered.

Threat of Substitute Products is high. Many other manufacturers are making tablets, and at lower prices, it’s up to the consumer to decide if the name is more important than the price. Apple has to continue to use its brand and level of quality to set itself apart from the competitor.

Threat of New Entrants is high. Electronic producers are always in competition to produce the latest and greatest products. Many manufacturers have already entered the market.

Threat of Existing Competitors is minimal. Even though there are many competitors Apple has set itself apart from the competitors by the operating system it currently