Download Use of information technology by apple impacts

Running Head: TECHNOLOGY & STRATEGIC/COMPETITIVE POSITION.
Technology & Strategic/Competitive Position
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TECHNOLOGY & STRATEGIC/COMPETITIVE POSITION.
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Use of information technology by apple impacts competitive rivalry, such as pricing,
promotion, and distribution in the following ways,
Apple conducts research using information technology so as to find out as well as
develop products that are of high quality. For example, Apple tested Apple pay using technology
before introducing the innovation into the market or into its products. Apple also introduces
innovative products into the market. Products such as the IPhone have multiple technological
features that are better than products produced by competitors. Examples of such features include
a feature that allows one to call over WiFi, high quality imaging as well as video recording and
picture taking, near field communication based payments as well as high memory storage of up
to 128 GB for its IPhone 6. Pricing on the other hand has been enhanced by technology because
technology has enabled Apple Inc. to produce multiple products within a short period of time.
Mass production thought the use of technology has enabled Apple to benefit from economies of
scale. Promotion of products has been done with the use of the internet; sales of the company’s
products are done online. The company sold goods and services worth 18 billion US$ in the year
2013. The company also conducts its distribution are done using order distribution and tracking
software (Scott & Shaoming 2012).
How the company dissuades new entrants
Apple dissuades new entrants by continuously improving the quality of its products; this
in turn improves its brand image as well as increases product loyalty.
TECHNOLOGY & STRATEGIC/COMPETITIVE POSITION.
Enables customers to achieve greater bargaining power
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The bargaining power of customer is enhanced by producing customer wants as well as
needs. The company also collects as well as analyses customer complaints. Market research is
also conducted on customers so as to identify opportunities within the market.
Enables suppliers to gain more bargaining power
Distributors can purchase products in bulk at a much lower price per product. The
company negotiates with those that deliver inputs of the products that it produces. Suppliers are
also guaranteed future contracts to supply inputs if they maintain the quality and availability of
their current supplies (Suzanne 2013).
Gives rise to substitute products or services that threaten the existing market
The company competes with substitute products by selling online. This enables it to
widen its market share; the company also continuously produces products that are innovative.
Customer support is also provided for the companies’ products. Such support include after sales
service as well as good refund and trade-in strategies (Suzanne 2013).
TECHNOLOGY & STRATEGIC/COMPETITIVE POSITION.
References
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K. Scott Swan, Shaoming Zou (2012) Interdisciplinary Approaches to Product Design,
Innovation, & Branding in International Marketing Emerald Group Publishing
Suzanne Berger (2013) Making in America: From Innovation to Market MIT Press