Apple Computer 1999 .

The entrance barrier is low due to standardized products, only moderate capital .

requirement, and well-spread technologies. In addition, PC companies face strong bargain power from both .

suppliers and buyers. Intel and Microsoft dominate the supply of microprocessors and operating system (OS) and .

affect the production cost. Buyers are knowledgeable in technologies and are price sensitive. Meanwhile, consumer .

electronics and telecommunication products are intending to perform all the functions that PCs have. Application .

software served as complements usually determines the success of products. Currently, most of the software are .

designed for Windows. .

Apple's Valuable Resources and Capabilities .

Apple has advantages when facing entrants, suppliers and substitute. .

?Brand. Apple's brand name Brand name can serve as a guarantee on technologies and services to consumers and .

deter entrants. It is useful especially when companies are now using sophisticate technologies in products. .

?Strong R&D. Apple has developed R&D ability in developing their own OS, thus it faces less bargain power .

from suppliers. Besides, it also helps other software companies develop iMac compatible software, which .

contributes to build full products and services line for iMac. .

?Graph and image processing ability and innovative design. Apple takes lead in graph and image processing .

technologies and innovative, user-friendly design. These abilities help Apple meets the huge demand of graphic .

technologies embedded in PCs in the coming 3C era. Such abilities can also help Apple move toward consumer .

electronics markets. .

Hurdle to Apple .

Apple faces threats from rivals, buyers and complements. .

?Price competition and trends of low-priced computer. Since buyers are price sensitive, price competition is .

severe. Every company provides low-priced computers, price for products drops sharply soon after they are .