This document discusses Porter's Five Forces model as it applies to the iPad. It analyzes the forces of existing rivalry, potential entrants, bargaining power of suppliers, bargaining power of buyers, and threats from substitutes. The key points are that the iPad faces competition from other tablets on price and features. It also must invest in R&D to maintain its technology lead and build brand loyalty to reduce the power of buyers and suppliers. Substitute products like touchscreen laptops also pose a threat.

1. Porter’s Five
Forces Model
for iPad
-Shambhvi Singh
FORE School of Management

2. Porter’s Five Forces Model

3. Existing Rivalry
 Samsung PadFone, HP Slate 7,Blackberry
Pad
 Lower prices of other products.
 Features of multitasking available in
others.
 Better storage capacity in Laptops.
 No external drives can be used in iPad.

4. Potential Entrants
Barriers to new entrants
 Providing more advanced technology by
investing on Research and Development.
 High startup capital for new entrants.
 Brand Loyalty,

5. Bargaining Power Of suppliers
 The bargaining power of supplier has to
be kept low by:
 Outsourcing.
 In house designing,hence suppliers have
an easy job of assembling.
 E-books, music are offered at better
publising rate.
 Specific fee is charged on all sales
i.e.,strategic offerings to suppliers.

6. Bargaining Power of Buyers
Has to be kept low by:
 Brand Loyalty.
 Cutting Edge Technology.
 Offerings such as iTunes, iBooks.
 Authorised downloading.
 Virus free and presentation services which
attracts more business people.
 Challenges for Apple : convincing customers
for buying there premium priced products for
the lucrative services .

7. Threats from substitutes
 Which include: Latest touch screen
laptops , laptop convertible to tablets,
Samsung notes Etc.
 Challenges : convincing TV and other
media to end their partnership with cable
and satellite TV providers and collaborate
with Ipad.
 Focusing more on content than Marketing
for stronger customer base.

8. Threats from substitutes
 Difficult to retain customers for specific
needs.
 Costly customized softwares.
 No option for multitasking and external
drive cannot be connected.

9. Thank you