Apple Porter's five force model

Porter's Five ForcesA MODEL FOR INDUSTRY ANALYSIS

Apple

Prepared by | Rishabh RJ

CSE 4th

semPorter's Five Forces Model of Apple by Rishabh

Michael E. Porter

Born in 1947.Professors in Harvard Business School. Introduced Porter's 5 Forces Model.Written 18 books & over 125 Articles

Porter's Five Forces Model of Apple by Rishabh

Porter’s Five Forces Chart

Porter's Five Forces Model of Apple by Rishabh

Apple

So I am here to describe you Porter’s Five Forces Model for

the analysis of “Apple”Porter's Five Forces Model of Apple by Rishabh

About Company

April 1st, 1976 – Founded

January 3rd,1977 – Incorporated

Headquarters – Cupertino, California

Co-founders – Steve Jobs, Steve Wojniak

CEO – Steve jobs

Industry – Computer software, computer hardware, consumer electronics.

Revenue- US$ 19.3 Billion

Porter's Five Forces Model of Apple by Rishabh

Products and Figures

Hardware - Mac(personal computer series),Apple Remote

Desktop

Software - Mac OS X, Mac OS X Server ,Quick Time, i Life, i

Work, Logic pro, Cinema Display etc.

Consumer Electronics - i pod, i pod hi-fi, i phone, Apple TV

Employees - 19,787 full-time ; 3,399 temporary (March

31,2007)

Retail stores - 183( 1st in Manhattan, New York)

Competitors - HP, IBM, DELL

Porter's Five Forces Model of Apple by Rishabh

Products

Competitors

Porter's Five Forces Model of Apple by Rishabh

EXISTING RIVALRY

Windows OS and media player for playing music and video (

Microsoft)

Competition to Mac OS X (Linux)

Alternate sources of computer hardware (Dell, HP, Lenovo)

Small stylish MP3 players (Creative, Samsung, Sony)

Online music stores similar to itunes stores (Napster)

Porter's Five Forces Model of Apple by Rishabh

THREAT OF NEW ENTRANTS

Streaming audio and video with v-cast (Verizon)

On demand online services (similar to i-tunes)

New entrants with disruptive technology (The “next google”)

Porter's Five Forces Model of Apple by Rishabh

BARGAINING POWER OF SUPPLIERS

Suppliers of processors and computer memory (Motorola, IBM,

Intel)

Strategic alliance/supplier of Mac (Microsoft)

Supplier of tv and movies (Disney, ABC, Fox, Sony)

Sources of music (BMG, Sony, Warner, Universal)

Porter's Five Forces Model of Apple by Rishabh

BARGAINING POWER OF CUSTOMERS

Customers share music using peer-to-peer networks without

paying for music (Ares, Limewire)

Retailers may pressure for lower prices or better terms

(Distributors)

Consumers/Businesses may reduce spending on computers if they

fear economic downturns (Consumer Attitudes & Behaviors)

Consumer Refresh Cycles

Porter's Five Forces Model of Apple by Rishabh

THREAT FROM SUBSTITUTES

Satellite radio for music (XM, Sirius)

Entertainment media, media and music (XBOX, PS2)

Alternative means to acquire music (Music CDs, DVDs)

Alternative sources for videos (Cable, Broadcast, Theatres)

Porter's Five Forces Model of Apple by Rishabh

RECOMMENDATIONS

FOR COMPANY:

Lowering the cost of products and maintaining the same quality

standards

Can form joint – ventures

Knowledge Management

More number of retail stores for easy access

Continuous innovation to expand

FOR OTHERS:

Do not compromise on price for quality

Choose the products based on individual needs

Be unique and different

Porter's Five Forces Model of Apple by Rishabh

Porter's Five Forces Model of Apple by Rishabh