Porter s Five Forces

Porters Five Forces Porters five forces is a tool for developing corporate strategies to become or remain competitive in an industry. The porter's five forces diagram are shown like: Five forces that determinant competitive powers in a business situation are: Supplier Power: Which is how easy it is for suppliers to drive up prices. Buyer Power: Which is how easy it is for buyers to drive prices down. Competitive Rivalry: The number and capability of competitors. Threat of substitution: This is affected by how easy customer could find another thing to replace.Threat of New Entry: The ability of people to enter market. Porter's Five Forces Analysis for Apple 1. Supplier Power: As Apple has to pay a lot of attention to develop new technology, scale production of a specific component has decreased. This may result in a negotiation with foundry and affect the overall prices. However, the technique require for foundry is relatively low, so there is a lot of supplier to choose from. Therefo re, the power of supplier is low. 2. Buyer Power: Apple focus on young and high-income groups, due to its successful brand, it aka apple represent as a fashion.Also, as most of the product are based on a unified architecture and style, when a user purchases a product of Apple, they already know the other product. So the customer will be less hesitant and have a high loyalty to the brand. Therefore the power of the buyer is low. 3. Competitive Rivalry: Computer Hardware: Dell, Leno, Acre and other PC manufacturers Computer Software: Microsoft, Google Phone: Monika, Samsung, Motorola, ETC and other smart machines Handheld entertainment devices: Sony Walkway, etc. Tablet: Sony, Leno, Samsung, etc.