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Apple Computer Corporate and Business Strategy
MED HIGH
Price-value characteristics of substitutes? LOW MED
Price elasticity of industry demand? HIGH HIGH
Availability of close complements? HIGH HIGH
Price-value characteristics of complements? HIGH HIGH
Factors Affecting Or Reflecting Power Of Input Suppliers
Characterization
(Current) Future Trend
Is supplier industry more concentrated than industry it sells to? YES YES
Do firms in industry purchase relatively small volumes relative to other customers of supplier? Is typical firm’s purchase volume small relative to sales of typical supplier? NO NO
Few substitutes for suppliers’ input? NO YES
Do firms in industry make relationship-specific investments to support transactions with specific suppliers? YES YES
Do suppliers pose credible threat of forward integration into the product market? NO NO
Are suppliers able to price discriminate among prospective customers according to ability/willingness to pay for input? YES YES
Factors Affecting Or Reflecting Power Of Buyers
Characterization
(Current) Future Trend
Is buyers’ industry more concentrated than industry it purchases from? NO NO
Do buyers purchase in large volumes? Does a buyer’s purchase volume represent large fraction of typical seller’s sales revenue? YES YES
Can buyers find substitutes for industry’s product? NO NO
Do firms in industry make relationship specific investments to support transactions with specific buyers? YES YES
Is price elasticity of demand of buyer’s product high or low? HIGH HIGH
Do buyers pose threat of backward integration? NO NO
Does product represent significant fraction of cost in buyer’s business? NO NO
Are prices in the market negotiated between buyers and sellers on each individual transaction or do sellers “post” a “take it or leave it price?” POST POST
Exhibit 9 Balanced Scorecard Approach
Exhibit 10 Apple Financial Ratios