3.2 Porters Five-Point Analysis: 1. IT Infrastructure

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3.

2 Porters five-point analysis


 Competitive Industry:
Amazon, Google, Samsung are the competitors of the Apple Inc. as customers are price
oriented, they would go for amazon’s kindle instead of iPad and which is a huge loss for
Apple. So, the key consideration to Apple is the threat of the marketplace.
 
 Bargaining power of buyers:
There are two forces of bargaining powers which are individual and collective. Individual
Bargaining is a weak force, one customer shows negligible amount of revenue. However,
Collective bargaining is a strong force. So, Apple needs to maintain loyal customers and
their satisfaction.  

 Bargaining power of suppliers:


The bargaining power of Apple's suppliers is relatively weak due to the company's large
number of potential suppliers and the ample amount of product supply.

 Threat of substitutes or substitution:


Threat of substitutes is low for Apple due its high brand value and limited capabilities of
substitute products that Apple has already done right.

 Threat of new entrants to the marketplace:


Threat of a new entrance could affect Apple, but it has already built its brand recognition
and loyal customers, so the threat is low for Apple.

1. IT infrastructure
Apple has built a great ecosystem. For large companies like Apple, having the resources and
expertise to develop and implement solutions that take advantage of their existing
technologies could make a huge difference. A smart meter that works seamlessly with iOS
should be secure and easy to upgrade. It should also be able to provide consumers with deep
access to their data, so they can easily monitor and control their energy consumption. No
matter how old the devices are, they will still need to be built to work seamlessly within the
infrastructure. It’s not unreasonable for Apple to want to capitalize on the massive potential
of the smart infrastructure market. Machine learning and artificial intelligence are becoming
more prevalent in our environment. Even though we may not be able to predict what we need
yet, we are already getting it. The Internet of Things is becoming increasingly complex and
less clear. As a result, the various connectivity standards that are currently in place are
holding back the entire space from being truly transformative.
2. CRM system review
Apple Inc. has used Customer Relationship Management system (CRM) in unique way
because it knows customers and what they need. Apple’s CRM can be explained with just
Apple ID that is unique ID given by Apple syncs across all the apple devices giving an
emerging experience with the Apple. The main focal point of CRM is improving the client
support insight for new and existing clients. The Apple Genius measure is important for Tech
support, which centres after permitting clients to meet eye-to-eye with experts and examine
issues and arrangements. CRM assists dealing with the impact of this face-to-face contact,
and also improving brand mindfulness when cantering upon CRM-based promoting and
focusing on messages later. By utilizing CRM broadly in their retail structure, Apple has
adequately created a way of life experience instead of just a buy. Apple is a worldwide
organization which has had achievement in various fields and needs a CRM framework
which can assist them with arriving at clients on an up close and personal level. Private
ventures can likewise profit by this kind of relational CRM. (Tharkal, 2021)

Advantages and disadvantages of the CRM system are as follows:


 Advantages:
 Improve customer loyalty over time.
 Better customer service.
 Faster sales process.
 Increased customer revenue. 
 More effective call centre.

 Disadvantages:
 Customer loyalty may be harmed if employees rely too heavily on CRM.
 Centralised data can raise security risk.
 Cost of adoption requires both time and productivity.
 needs a sales organization that follows a set of procedures. 
 CRM may or may not be appropriate. 

3. CRM justification and discussion


Apple has not been known for its marketing. Due, to rapid emergence and evolution of new
technologies and the increasing availability of advanced products and services, customers'
expectations have changed significantly over the last two decades. Therefore, companies
should implement a comprehensive quality management process. If they retain their
customers, the cost will go down. On the supply side, it is beneficial for them to develop
closer relationships with their customers.

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