Apple

This section will evaluate the industry factors which shape the strategy of Apple. Presently Apple due to its strong position can govern the tablet market but still there are many factors which have needs to be analysed before iPad can become a true market leader.

* Power of Suppliers: Apple has high power over consumers as they have partnered with big brands and therefore using monopolistic price policies. Their product is standard and can't be customised by others. The company is taking products from so many other companies and assembling it which has helped them to decide the prices and high brand image is helping them to cash the price of advertising from the consumers. The company has changed the product and launched iPad 2 from March 2, 2011 but still there are lot of buyers who haven't used iPad first generation yet. (Apple Annual Reports, 2010)

* Power of Buyers: The buyers have no control over iPad and they are at the mercy of the company. The buyers want to get products as soon as possible but mostly the company says 3-4 weeks for iPad to reach the consumers. Due to strong ties with the network providers the buyers have to take the products under contract otherwise they have to pay huge money to get the iPad alone. The price is $499 in US but its $ 544 in Asia but the buyers can’t do anything due to low power over the supplier. The products in this category is quite high and so the switching cost is also quite high. (Shin, 2010)