Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Using Porter's 5 Forces on Apple

78,233 views

Published on

Using Porter's 5 Forces to evaluate Apple's competitive advantage.

Published in: Business
  • Have you ever heard of taking paid surveys on the internet before? We have one right now that pays $50, and takes less than 10 minutes! If you want to take it, here is your personal link ▲▲▲ https://tinyurl.com/realmoneystreams2019
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • I'll tell you right now (and I've got proof), that anyone who tells you "size doesn't matter to women" is flat out lying to your face and trying to make you feel better... Heck, just recently I asked a focus group of women via an anonymous online survey if size matters, and again and again they said "Oh my god, I HATE IT when it's SMALL." For a long time I didn't know what to tell the guys who'd write in to me and ask how to get "bigger." I'd say something lame like "Women actually like guys who are smaller... you just have to get good with your hands." Then I found "THE BIBLE of Penis Enlargement" by this guy named John Collins ◆◆◆ https://tinyurl.com/ydaetwbk
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • WHAT MEN SECRETLY WANT? He will be addicted to you FOREVER, CLICK HERE... ♣♣♣ http://tinyurl.com/y4b2om2w
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Unlock Her Legs - How to Turn a Girl On In 10 Minutes or Less... ▲▲▲ https://tinyurl.com/unlockherlegss
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Hello! Get Your Professional Job-Winning Resume Here - Check our website! https://vk.cc/818RFv
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

Using Porter's 5 Forces on Apple

  1. 1 Apple Inc. NASDAQ: AAPL Porter’s Five Forces
  2. • Porter’s 5 Forces is one of the most recognized frameworks, used to assess the competitiveness and attractiveness of a particular company and its industry. • Named after Harvard professor, Michael E. Porter, this framework identifies five forces that can help investors identify opportunities and threats within an industry. • The 5 forces are: threat of new entry, supplier power, buyer power, threat of substitution and competitive rivalry. • While Porter’s is good at examining a company’s strengths and weaknesses, it’s only meant as a starting point and may not be predictive of the long-term. 2 What is Porter’s Five Forces?
  3. • There is no one official way to score the model. This method is simply a way to categorize companies. • Each market force is scored on a spectrum, with high representing the highest threat and low representing the lowest threat. • All five forces are then taken together and evaluated holistically on the same low/high spectrum. 3 Scoring Low High Medium
  4. The more players there are, the more intense the competition for the same customers. As companies struggle to differentiate themselves, it’s easy to make pricing the focal point. • Apple has avoided price-based competition thus far by staying away from low end markets where price is the main differentiator. • Apple products never go on sale. By generating a superior product to the Android phones, rival tablets and eReaders, it compete based primarily on quality, service and unique ecosystem. 4 Competitive Rivalry
  5. The bargaining power of suppliers is determined by the uniqueness of supplier’s products. • Apple reduced the power of chip makers by designing its own chips. • Apple reduced the power of manufacturers, like Foxconn, by buying manufacturing equipment and only allowing the equipment to be used for Apple products. • Apple reduced the power of distributors by taking over retail distribution and product services through the Apple Store. 5 Supplier Power
  6. In general, the more customers a company has, the less bargaining power each customer will have. And if switching costs are high, then buying power substantially decreases. • Apple keeps switching costs high by keeping critical products features same and easily transferable among devices, i.e. contacts, calendar, Pages, Numbers, iCloud, iPhoto, iMovie, iOS • To increase Apple’s stickiness, the company carefully broadens its innovative product flow. (From iPod to iWatch, but always on iOS). 6 Buyer Power
  7. In order to succeed against Apple, new entrants have to find a way to offer better products at more affordable prices. • Apple has a strong brand image, innovation and customer service – making it difficult for new entrants to compete against. • Tim Cook’s supply chain expertise is a great defense against low end disruption from new entrants. New entrants will have difficulty matching or beating the supply chain cost structure. 7 Threat of New Entrants
  8. Not necessarily the same products offered by other companies, but rather different products that satisfy the same need as the products being offered. • Apple mitigates this effect by selectively making products which might ultimately replace the MacBook or the iPhones. Ex: wearables and simple, cheaper version of the MacBook 8 Threat of Substitutes
  9. • Competitive Rivalry – Medium • Supplier Power – Low • Buyer Power – Low • Threat of New Entrants – Low • Threat of Substitutes – Medium 9 Summary

×