Segmentation is putting marketing focus on a particular group of potential consumers. The computer industry has many companies that produce computers but Mac by Apple has segmented them self from other computer companies like HP and Sony.
The “five competitive forces and competitors” (Kotler & Keller, 2009, p.154) described by Michael Porter are the “threat of intense segment rivalry, the threat of new entrants, the threat of substitute products, the threat of buyers’ growing bargaining power, and the threat of suppliers’ growing bargaining power” (pp.154-155).
Mac stands alone from their competitors although they do advertise against the PC letting the public understand Mac is not the typical computer. Apple advertises Mac letting consumers know if they purchase a Mac they do not need an anti virus protection like PC owners as hackers haven’t been able to break Apple’s code. This could be a threat to Apple if a hacker does break the code and Mac’s start to crash.
Mac doesn’t feel the “threat of new entrants” (Kotler & Keller, p.155) as they have innovated the computer, targeting consumers who want the latest in computer technology. Apple does what others don’t do, they sell their computers from either their own store or from a licensed retailer who has an Apple representative available to answer any consumer questions.
I enjoyed your write –up on Mac vs .Industry. You are correct in stating that Mac doesn’t feel the threat of new entrants at all. Their product, although a bit more expensive than one would like to spend, provides overall the best quality without the constant fear of virus attacks. It is removing that fear is what keeps the customers loyal and willing to pay whatever the amount to avoid “headaches” of a virus attacks.
Mac also continues to demonstrate that they have the “competitive advantage”,(Kolter and Keller, 2009, p.152) in more ways than one, and competitors simply can’t match what Mac creates and provides. This was very apparent recently with the launch of the new Windows 7 for PC’s. PC companies were almost certain that with this new platform, more sales of this product would have definitely have PC ahead of Mac for the first time with regards to quality and cost. However , it was found that “ Windows 7 hype might end up helping Mac by enticing...