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Analysis Of Porter's Five Forces Analysis Apple

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Introduction

Apple Inc. is Multinational Corporation that manufactures and designs computers software, hardware and other electronics. It is an American company and its corporate headquarters is in California, Cupertino, chief executive officer and the co-founder is Steve Jobs. The corporate is proverbial for its Mac OS X, Macintosh laptop computer line, very loyal user-base, iPod personal music player and the iTunes media application. The company boasts 284 retail locations come cross 10 different countries.

Steve Jobs, Steve Wozniak and Ronald Wayne established Apple on April 1st, 1976 to sell the Apple I personal computer kit. 45% of the company was owned by Steve Jobs, Steve Wozniak with 45% and the remaining 10% was owned by Wayne. Ronald …show more content…

This component of Porter’s Five Forces analysis model determines the strength of substitute products in attracting customers. In Apple’s case, substitutes exert a weak force based on the following external factors:
• High availability of substitutes (moderate force)
• Low performance of substitutes (weak force) Alternatives products to Apple are easily available in the market. In instance, people can use different brand phones or digital cameras instead of using iPhone for pictures or calls. Substitutes to Apple products are readily available in the market. For example, people can easily use digital cameras instead of the iPhone to take pictures. They can also use landline telephones to make calls. However, a customer looks for a product with an advanced feature and that why they use Apple products as the alternatives have low limited features. In this part of the 5 Forces it shows that Apple does not need to give priority of the threat of substitution in business processes.
5. Threat of New Entrants or New Entry (Moderate Force) The threat of new entrants is moderate force for a company like Apple. This part of Porter’s 5 Forces analysis model refers to the impact and chance of new competitors entering to the market. There are …show more content…

Moreover, to compete towards a large and well-known company like Apple it is costly to develop a strong brand and for that a new entrants get to be weak. In the other hand, large companies with a financial strength like when Google produced the smartphones product Nexus and Samsung influenced Apple. This shows that there are large companies that have a chance to compete against Apple. In this part of the 5 forces it shows that Apple should stay strong against new entrants by preserving its competitive

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