Five external industry forces affecting an organization. Porter in to understand how five key competitive forces are affecting an industry.
High levels of competition among suppliers acts to reduce prices to producers.
This is a positive Low cost of switching suppliers Apple Inc. The easier it is to switch suppliers, the less bargaining power they have. Threat of Substitutes 8 Substitute has lower performance Apple Inc. A lower performance product means a customer is less likely to switch from Apple Inc.
Substitute product is inferior Apple Inc. An inferior product means a customer is less likely to switch from Apple Inc. Substantial product differentiation Apple Inc. When products and services are very different, customers are less likely to find comparable product Limited number of substitutes Apple Inc.
A limited number of substitutes mean that customers cannot easily find other products or services When buyers are less sensitive to prices, prices can increase and buyers will still buy the product Product is important to customer Apple Inc.
When customers cherish particular products they end up paying more for that one product. Large number of customers Apple Inc. When there are large numbers of customers, no one customer tends to have bargaining leverage High capital requirements mean a company must spend a lot of money in order to compete in the Strong brand names are important Apple Inc.
If strong brands are critical to compete, then new competitors will have to improve their brand Advanced technologies are required Apple Inc. Advanced technologies make it difficult for new competitors to enter the market because they have to Customers are loyal to existing brands Apple Inc.
It takes time and money to build a brand. When companies need to spend resources building a brand, High switching costs for customers Apple Inc.Porter’s five forces analysis: Apple’s fall and rise Apple Inc.
is a giant in the world of PC industry.
However, they were not the PCs mainstream, perhaps due to the premium price. Porter regarded understanding both the competitive forces and the overall industry structure as crucial for effective strategic decision-making.
In Porter's model, the five forces that shape.
Evaluate Apple's position in the marketplace by looking at it through the perspective of the Porter Five Forces Model for industry analysis. This is a five forces analysis evaluating the factors that affect the level of competition in and attractiveness of the PC industry.
While the level of competition in the industry is tough, it is still an attractive market but the entry of new brands is difficult because of the large investment required to raise and grow a PC brand. Evaluate Apple's position in the marketplace by looking at it through the perspective of the Porter Five Forces Model for industry analysis.
Apple Inc. Five Forces Analysis.
Porter’s Five Forces model is an analytical tool that was named after its developer Michael E porter. Porter developed this model in and since then it has come to be widely used to analyse the profitability and attractiveness of industries.