Future Market Conditions: Apple, Inc.

Essay by roscottUniversity, Bachelor'sA+, January 2009

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Future Market Conditions

Roger Scott

University of Phoenix


Instructor: Alfred Siu


Future Market Conditions

In addition to analyzing current market conditions, companies need to be looking forward and creating strategies to support their long-term growth and profitability. Current market conditions can help companies formulate short-term strategies and goals but companies must be able to analyze and predict changing markets. Being proactive in a changing market is more beneficial to a company than being reactive to unforeseen changes, which can cost market share and revenue. Companies operating in the different market structures need to be aware of factors such as new competition, pricing structure, governmental forces and supply and demand. The following will analyze future market conditions for Apple Inc. and discuss the effects of the above factors.

As discussed earlier, Apple Inc. is in a position that places the company within the constructs of two different market structures.

Apple is part of the computer manufacturing industry as well as the consumer electronics industry. The computer manufacturing division of Apple belongs to a market structure that can be defined as an oligopoly and in all likelihood that market will remain intact for the foreseeable future. This is due to the fact that investment for entry is significant and the major players have a strong hold on the existing market share. Any change in this market is likely to come from acquisitions and mergers rather than new competition. The consumer electronics division belongs to a market that is much broader in terms of product diversity and competition. Barriers to entry in this market are much less restrictive than the computer industry which could lead to new competitors. iTunes is a barrier to entry for anyone wanting to compete in the same space as...