Porters 5 forces (apple)

OUTLINE

Introduction

Porter’s 5 Forces

Introduction

In April 1976, Steve Wozniak and Steve Jobs were

established Apple together after they graduated

In the past ten years, Apple has expanded into a

very intricate company

The company operates in five sections:-

Americas, Europe, Japan, Asia-Pacific and Retail

Consumer Electronics

Consumer Software

Porter’s 5 Forces

Rivalry Among

Competitors

Threat of New

Entrants

Bargaining Power of Buyers

Threat of Substitute Products

Bargaining Power of Supplier

1. Threat of New Entrants

Barrier to entry because it is too high in cost

Cost of product differentiation

To prevent from plagiarismApply patents for inventions

Different target market

Target customers with

high salary range

Keep costs downEconomies of scales

High brand recognitionSuccessfully develop its

brand name

2. Bargaining Power of Supplier

Unique products

Has more power over its supplier

Able to make strong demands

3. Bargaining Power of Buyers

Has millions of buyers (individual & larger corporations)

Have the ability to increase its products price

Need to ensure the price is not drastically increases

4. Threat of Substitute Products

• Samsung smart phone

• Table-computer

Example:

Samsung

Galaxy S3

Comparison

SIZE OF TOUCH SCREEN

-Samsung Galaxy S3

-4.8 inch

-iPhone 4S -3.5 inch

31 May 2012,when

Samsung Galaxy S3 first

made available in

Malaysia

-RM999

•PRICE OF SMART

PHONE

-Samsung Galaxy S3 –

RM2199

-iPhone 4S-RM2499-

RM3099

5. Rivalry Among Competitors

Computers companies

Dell, HP,ASUS, ACER, Sony

Other computer manufacturers

Too much

choices.

Difficult for

customers to

make choice

APPLE

Limited products

choices,

Drive more sales &

beat competitors