7. THREAT OF NEW ENTRANTS
- LOW
Cost of product differentiation
>> Barrier to entry
Apply patents for inventions
Target customers with high salary
range
>> Different target market
Successfully develop its brand name
>> High brand recognition
Economies of scales
>> Keep costs down
8. BARGAINING POWER OF
SUPPLIERS
- MODERATE
Announce plan to use Intel processors
>> High switching cost
Strong vertical integration
>> Not much relying on third-parties
supplier
Product differentiation strategy
>> Pass cost to customers
Buying in large volume
>> Discount in bulk purchasing
9. BARGAINING POWER OF BUYERS
- LOW
Focus on niche market
>> Special demand
Product differentiation strategy
>> Highly demanding
Target customers who emphasize on
quality
>> Willing to pay higher price
Developed high brand loyalty
>> Return and purchase
Using highly compatible closed-systems
>> High switching cost
11. COMPARISON
SIZE OF TOUCH
SCREEN
31 May 2012,when
Samsung Galaxy S3 first
-Samsung Galaxy
S3 -4.8 inch made available in M’sia
-iPhone 4S -3.5 inch -RM999
•PRICE OF SMART
PHONE
-Samsung Galaxy S3
–RM2199
-iPhone 4S-RM2499-
RM3099
Image of iPhone 4S
12. Built reputation as
innovator
Differentiation
approach
Concern on quality
Produce "own"
substitutes
13. RIVALRY AMONG
COMPETITORS- MODERATE
Computers companies
-Dell, HP,ASUS, ACER, Sony
& others computer manufacturers.
APPLE
-Toomuch choices Limited products
Difficult for choices,
customers to Drive more sales &
make choice beat competitors
14. Spend heavily on
R &D department
Emphasis on
quality of products
Product
differentiation
18. Move to Intel processor
Pro
Coming out amazing products
Lower production cost and increase sales
Cons
fight against with other competitors
19. Strong Vertical Integration
Pro
Coordinate activities in supply chain
Increase customer exposure
Enhance product quality and enjoy
unparallel pricing power
Cons
Bureaucratic cost increase
20. BARGAINING POWER OF BUYERS
Focus on niche market
Pro
Move efficient and effective
Generate higher profits as customer
satisfaction achieved
Cons
Not much sales and profit generated
Suffer a great loss when market failure
21. Highly compatible closed-system
Pro
Maintain its cost
Minimize risk of competitors
Rising profits
Cons
Take time come out patch
Cost satisfaction
Constantly bear research cost
22. THREAT OF SUBSTITUTES
PRODUCT OR SERVICE
Focus making superior quality
product
Pro
Reflect high performance
Reflect non price competition
Insulated from intensive competitors
Cons
Increase cost of production
Possible for losing market share
24. RIVALRY AMONG COMPETITORS
Spend heavily on R&D department
Pro
High brand recognition and reputation
Expand market share
Sustain status as industry leaders
Enhance probability
25. Limited choice within product category
Pro
Maximize customer satisfaction and
loyalty and increase financial returns
Cons
Increase pressure
Ineffective and inefficiency in product
development process
Possible lost market share and gain loss
27. THREAT OF NEW ENTRANTS
continue using product differentiation
strategy
invent new technology products constantly
R&D should find ways to cut costs
28. BARGAINING POWER OF SUPPLIERS
build good rapport with supplier
continue using vertical integration in their
operations
reduce their own bureaucratic costs
29. BARGAINING POWER OF BUYERS
focus on their niche market
more technicians for the repairing of the
software
30. THREAT OF SUBSTITUTE PRODUCTS OR
SERVICES
market-skimming pricing when set price for
their products
products -provide many features and
benefits
approach of Apple to offer host of products to
act as own substitutes should be maintained
preserve their uniqueness of products- retain
customer loyalty
31. RIVALRY AMONG COMPETITORS
maintain the culture of being innovative
consider about the problems of increasing
pressure on workers of Research and
Development Department – EAP in
ShenZhen, China
33. CONCLUSION
provides numerous type of technology
products:
iPhone (smart phone)
iPad (tablet pc)
iPod (portable music player)
iMac (desktop computer)
34. CONCLUSION
Porter’s Five Forces Influence of Forces
Threat of New Entrants Low
Bargaining Power of Moderate
Suppliers
Bargaining Power of Buyers Low
Threat of Substitute Products Moderate
or Services
Rivalry of Competitors Moderate
35. CONCLUSION
o Advantages and disadvantages.
o Exploiting strengths and opportunity.
o Correcting weaknesses.
o Minimizing threats.