Porter's Five Forces analysis can be used to analyze Apple's competitive position. The key forces impacting Apple are strong competitive rivalry from Microsoft, Dell, and other electronics companies; the threat of substitutes like online music stores; and the bargaining power of large suppliers like Intel. Apple faces opportunities in expanding into new products and markets internationally, while threats include changing customer preferences and limited customization on other smartphone platforms.

1. Porter's Five Forces
Apple
Prepared by | BAPPI DAS
ID : 71517053
University of dhaka (THM)

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

3. Porter’s Five Forces Model
Competitive
Rivalry
Threat of
Substitutes
Products
Bargaining Power
of Buyers
Bargaining Power
of Suppliers
New Entrants

4. Apple
So I am here to describe Porter’s Five Forces Model for the
analysis of “Apple”

5. About Company
April 1st, 1976 – Founded
January 3rd,1977 – Incorporated
Headquarters – Cupertino, California
Co-founders – Steve Jobs, Steve Wojniak
CEO – Tim Cook
Industry – Computer software, computer hardware, consumer electronics.
Revenue- US$ 75.9 Billion

6. 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

7. Products
Competitors

8. 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)


9. 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”)


10. 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)

11. 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

12. 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)

13. opportunities
threats
weakness
Strengths

14. Customer Royalty
Unique Products and
services
Strong Leading and
Strong Marketing
Share Increase

15. Add new product
Promote new segment
International reach
Strong growth of
mobile market

16. Product price
Product launch delays
Weak distribution
channel
Limited product

17. Competitor with new
technology
Changing customer
preferences
Very limited ability to
customize other smart
phone in the market

18. Porter's Five Forces Model of Apple by Rishabh

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