Tuesday, October 22, 2013

The market structure of Apple Inc.

In my points of view, Apple Inc. can be considered stand in difference market structures such as oligopoly and monopolistic competition. Oligopoly is a market form which is controlled by a small amount of competitors known as oligopolists (Economicsonline.co.uk, 2013). The companies that dominated oligopoly and monopolistic competition are usually maintain the position in the market because it’s too costly or difficult to any potential rivals to enter the company which mean there are entry barriers. Apple Inc. is oligopoly in the smartphone’s operating systems’ firm. There are 3 mainly operating systems which is very competitive in the market are iOS, owned by Apple Inc., Android, which is owned by Google, Windows phone, owned by Microsoft. These 3 are the most competitive operating systems throughout the world, and they keep on adding new features to the operating systems to dominate the rivals. 

On the other side, Apple Inc. is known as monopolistic competition in the branded computers. Compare to oligopoly, monopolistic competition has more competitors, thus the apple’s iMac and Macbook are considered as a monopolistic competition. There are a few branded computer companies like Toshiba, Acer, Apple, Asus and Dell. These competitors shared a computers market internationally, the revenue generates by them are close enough to keep themselves stay competitive to the others brand. 

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