Current Event Analysis -- Apple's Term Paper

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The fact that iTunes is compatible across the entire spectrum of iPod/iTouch, and iPhone models has transformed Apple's business model by creating significant switching costs, further ensuring their market leadership. This has also created a defensible market position with suppliers and partners of all forms of digital content, from music and movies.

Third, Apple's unique design strategies in smart phones have also been an effective deterrent against competitive entry into their segments of the smart phone market (Bertolucci, et.al.). Apple's iPhone 4 is considered by many industry experts to be one of the most, if not the most innovative design ever produced, even with the antenna issues the company had (Bertolucci, et.al.). Apple orchestrates all of the factors in the five forces model to their advantage to erect barriers to their most profitable markets, which are MP3 players (iPods, iTouch) and also to move aggressively into new markets.

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Apple also works to extend its brand to retain their advantage with Buyer Power as well. All of these factors contribute to the company's ability to create a unique, highly efficient an differentiated value chain. For their customers, this equates to a unique and trusted experience every time they visit an Apple store or use one of their products. Apple has been able to use the five forces to create trust as a result......

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