Porters Five Forces Apple

To get valuable industry insights, different analysis models are usually employed by market analysts. One of such analysis models is Porter's Five Forces model. Let's take a look at what Porter's Five Forces analysis is through an example of the company, Apple.

Porters Five Forces Apple Porters Five Forces Apple

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Contents
Table of contents
    Frequently Asked Questions about Porters Five Forces Apple

    What is Apple business strategy? 

    Product differentiation is Apple's business strategy.

    What competitive forces does Apple face? 

    Organizations such as Samsung, Google Inc., Amazon Inc., among others, provide high competition for Apple in the technology industry.

    How does Apple use Porter's five forces?

    Apple uses Porter's five forces to remain an industry leader in the technology space despite the fierce competition from the likes of Google, Amazon, Microsoft, Lenovo, Samsung and so on.

    What does an analysis using the five forces model suggest about Apple?

    Industry competition:

    • Samsung, Google Inc., and Amazon Inc. are the biggest competitors of Apple.
    • Apple's competitors offer similar types of products that fulfil the same purpose for customers. 


    Supplier bargaining power:

    • Suppliers have low power in imposing their demands on Apple, due to the diverse number of component suppliers available to Apple globally.
    • Apple can also easily switch between component suppliers at a low cost with little or no obstacle. 


    Buyer bargaining power:

    • This force is low when we consider only individual bargaining power, but high when we consider customers' collective bargaining power. 

    Threat of substitution:

    • The threat of substitutes for Apple products is particularly low due to the limited capabilities of said substitutes. 

    Test your knowledge with multiple choice flashcards

    The threat of substitutes of Apple products is ...

    Apple's suppliers have relatively high bargaining power.

    Buyer barganing power is a strong force for Apple whereas supplier bargaining power is a weak force for Apple. 

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