Digital media innovation and the Apple iPad: The threat of substitute products for the PC industry has grown. HP and Lenovo compete with its laptops and PCs while Microsoft is a major competitor in operating systems. High availability of substitutes moderate force Low performance of substitutes weak force Substitutes to Apple products are readily available in the market.
Also, there is a variety of purchasing plans available, especially for mobile technology such as Apple's iPhones. The level of competition between the top players in the technological industry is very high.
Threat of Buyers Opting for Substitute Products Substitute products, within the framework of Porter's Five Forces Model, are not products that directly compete with a company's products but possible substitutes for them.
Threat of new entrants.
Bargaining power of suppliers: Every brand is pushing very hard in terms of quality and prices to attract the customer. The bargaining position of suppliers is weakened by the high number of potential suppliers for Apple and the ample amount of supply. One thing that makes the industry so highly competitive is the relatively low switching cost.
Buyers exert strong bargaining power when: When more organizations compete for the same market share, profits start to fall.
So, overall while the number of substitutes of PC is high, the threat from them is also high. Apple does not have much control over the raw material or distribution channels.
While the US market is still to pick up, the number of shipments has increased in the first quarter of A limited number of substitutes mean that customers cannot easily find other products or services The bargaining power of suppliers in the PC industry is low because of their smaller size and large numbers.
Apple has managed a complex chain of suppliers that are spread globally over several nations including US, China, Taiwan, Japan, Brazil, Mexico and several other small and big nations. Advanced technologies are required Apple Inc. Threat of New Entrants:.
Apple Inc. Apple Inc. (formerly Apple Computer, Inc.) is an American multinational corporation that designs and sells consumer electronics, computer software, and personal computers.
The company 's best-known hardware products are the Macintosh line of computers, the iPod, the iPhone and the iPad. This is a five forces analysis evaluating the factors that affect the level of competition in and attractiveness of the PC industry. While the level of competition in the industry is tough, it is still an attractive market but the entry of new brands is difficult because of the large investment required to raise and grow a PC brand.
Porter’s five forces analysis: Apple’s fall and rise Apple Inc. is a giant in the world of PC industry. However, they were not the PCs mainstream, perhaps due to the premium price.
MacBook Pro, iPad and iPhone from Apple. Apple’s Five Forces analysis (Porter’s Model) on external factors in the industry environment shows that the company must prioritize competition and the bargaining power of buyers. Analysis of this report is on the strategies being used by Apple to sustain and also increase its market share in the industry.
Evaluation has been done on Apple’s SWOT analysis, the external environment (PEST analysis), Porter’s Five Forces and the Ohmae 3Cs Analysis.Porters 5 forces analysis of apple