Porter’s Five Forces Analysis of Apple Company

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Rntyr1983

Writing

Description

Instructions:

Conduct a Five Forces analysis for the Apple company. You may have to research Michael Porter's Five Forces to gain a complete understanding of what it means. Essentially, I'm looking for a paper with five sections covering the following topics: threat of new entrants, threat of substitutes, bargaining power of customers, bargaining power of suppliers, and industry rivalry. How is the Apple company competitively impacted by companies and customers in their market? The Wikipedia page for Porter's Five Force Analysis has a very nice list of factors to consider in each of the five sections.

You should find and reference a few (at least 3-4) news articles to reference the company’s current situation. I would also suggest looking at annual reports or other financial filings.

Please follow these guidelines when writing the paper:

  • Include a cover sheet with your name, your paper title, the date.
  • Times New Roman, 12 pt font
  • 1-inch margins on all sides (top, bottom, left, and right)
  • 6 pages of text (~1,500 words)
  • List all references you use


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Explanation & Answer

Attached.

Running head: PORTER’S FIVE FORCES ANALYSIS OF APPLE COMPANY

Porter’s Five Forces Analysis of Apple Company
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Institution

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PORTER’S FIVE FORCES ANALYSIS OF APPLE COMPANY

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Porter’s Five Forces Analysis of Apple Company
The Five Competitive Forces of Michael Porter is a very popular framework currently
used by most organizations to evaluate their attractiveness and competitiveness. The model has
been named after Michael E. Porter, a Harvard University professor who came up with the
model. Porter’s Five Forces help managers and investors to categorize the opportunities and
threats in a given industry. The five forces include the threat of new entrants, bargaining power
of suppliers, threat of substitute products or services, competitive rivalry and the bargaining
power of buyers (Porter, 2008). The analysis of the Five Forces of Apple Company provides
insight concerning the outside factors affecting the company’s operations. The outline also
shows the actions that the firm takes to flourish in spite of the detrimental impacts brought by the
external elements in the competitive landscape of the industry. Based on the Five Forces analysis
of Porter, Apple Inc. needs to focus on addressing the bargaining power of its buyers and the
competitive rivalry because these two are the factors that present the greatest threat to its position
as the leading company in the information technology industry.
Threat of New Entrants
There are only a few large companies that exist in the computer and electronics software
industry. Apple is known for manufacturing and designing modern technology electronics
devices such as Mac computers, iPhone, iPod media player, the Apple Watch and the iPad tablet.
These devices operate using the iOS and MacOS operating systems, iTunes media player and the
Safari Web browser (Apple Inc. Report, 2018). The industry is composed of large economy
corporations, which makes it difficult for new entrants to join the industry and compete. A
prospective new entrant would require a considerable amount of money for it to be able to

PORTER’S FIVE FORCES ANALYSIS OF APPLE COMPANY

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compete with Apple, because it has established itself firmly in the industry and the market, and it
also has plenty of resources. The other large corporations in the industry include Google,
Samsung, HP, and Dell. The economies of these companies are so large making it incredibly
hard for start-up firms to gain any considerable share in the market. For example, in the market
of personal computers, there are only three operating systems that are widely used, including
Microsoft Windows, Mac OS X, and Linux (Apple I...


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