Michael Porter 5 Forces
Porter's five forces of competitive position analysis is a simple framework for assessing and evaluating the competitive strength and position of a business organization that formed by Michael E. Porter of Harvard Business School in 1979. Basically, the concept of this theory is actually based on the five forces model that uses to determine the intensity of competition and market attractiveness. Therefore, strategic analysts are often to use Porter’s five forces to comprehend whether new products or services are potentially profitable when they’re entering into new player. The five forces of Michael Porter’s are bargaining power of suppliers, bargaining power of buyers, competitive rivalry within an industry, threat of substitutes products, and threat of new entrants.
The first of Porter’s forces which is competitive rivalry within an industry, this is based on the number and capability of competitors in the market. When Apple expanded its business to global there is much existing competitors faced by Apple that would be other computer companies such as HP, Dell, IBM, Acer, and others. Therefore, Apple is facing fierce competition from these companies and this might make the Apple current rivalry very high. Nonetheless, Apple has set a higher price for their products than other companies because with its innovation and stylish products that they’re selling to market. In this case, the innovation and the technology advances might help Apple overtook the competition. In addition, the combination of iTunes and iPod is clearly make Apple dominates in the digital music market. ITunes is a software that allow user to download music, which mean that ITunes has dominates the download market, and so IPod’s which are the one product that uses to control the digital player market. However, even ITunes has achieved much of the achievements, the company has also faces pressures from companies like Nokia for the control of...
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