Porter S Analysis Apple
Introduction: Five Forces Framework
Porter’s Five Forces Model is a model that analyzes an industry to help develop a business strategy. The model uses five forces that have been identified to categorize an industry as intensely competitive or not competitive at all and this will then determine the attractiveness of the market.There are many features of an industry in which a company competes that determines the level of competition it will face and the profits it will get. The most famous classification was done by Michael Porter, known as Porters Five Forces framework which can help a company determine its potential profits by looking at five sources of competitive pressure. The five sources of competition are:
1. Threat of new entrant
2. Threat of substitutes
3. Rivalry among existing competitors
4. Bargaining power of suppliers
5. Bargaining power of buyers.
Porter's Five Forces
In particular, we will focus on three different industries; We will start analyzing the five forces in the smartphone industry and then we will continue dealing with the personal computer industry and finally we will present digital music portable industry.
SMARTPHONE Industry:
In general the smartphone market is rapidly changing, with constant product introductions. It is characterized by quickly evolving technology and designs, short product life cycles, aggressive pricing, rapid imitation of product and technological advancements, and highly price sensitive consumers. Self-elasticity and cross-elasticity are high. No one firm in the market has sufficient market share to control prices, resulting is strong rivalry and competitive pricing.
1. Threat of new entrant: The barriers to entry are high due to the existence of patents, high fixed costs and economies of scale, regulation, and brand loyalty. The individual market participants engage in attempts at product differentiation, some being more successful than others. The standout is Apple, which has successfully
Porter’s Five Forces Model is a model that analyzes an industry to help develop a business strategy. The model uses five forces that have been identified to categorize an industry as intensely competitive or not competitive at all and this will then determine the attractiveness of the market.There are many features of an industry in which a company competes that determines the level of competition it will face and the profits it will get. The most famous classification was done by Michael Porter, known as Porters Five Forces framework which can help a company determine its potential profits by looking at five sources of competitive pressure. The five sources of competition are:
1. Threat of new entrant
2. Threat of substitutes
3. Rivalry among existing competitors
4. Bargaining power of suppliers
5. Bargaining power of buyers.
Porter's Five Forces
In particular, we will focus on three different industries; We will start analyzing the five forces in the smartphone industry and then we will continue dealing with the personal computer industry and finally we will present digital music portable industry.
SMARTPHONE Industry:
In general the smartphone market is rapidly changing, with constant product introductions. It is characterized by quickly evolving technology and designs, short product life cycles, aggressive pricing, rapid imitation of product and technological advancements, and highly price sensitive consumers. Self-elasticity and cross-elasticity are high. No one firm in the market has sufficient market share to control prices, resulting is strong rivalry and competitive pricing.
1. Threat of new entrant: The barriers to entry are high due to the existence of patents, high fixed costs and economies of scale, regulation, and brand loyalty. The individual market participants engage in attempts at product differentiation, some being more successful than others. The standout is Apple, which has successfully