Porter's Five Forces

Words: 2422
Pages: 10

Apple & Porter’s Five Forces
Apple is a company that manufactures, designs and markets media and mobile communication devices including portable digital music players, personal computers and a huge range of related software, peripherals, services, networking solutions, applications and third-party digital contents. Apple Company’s products include iPad, iphone, Macbook, Apple TV, a wide selection of both professional and home use software applications, IOS & OS X operating system and also iCloud. Besides, they also provide a great variety of accessories such as Apple brand mouse, keyboard, earphone, headset and many more. Apple also sells their own digital content and applications through Apps Store, iBooks Store and music though
…show more content…
Threats of substitution for Apple products are rather low in this market because Apple used more advanced technology than some of its rivals. Technology such as IPS LCD screen is used to reduce glare so that the screen can be viewed easily under heavy sunlight while consuming lesser energy when viewing lighter images.
Apple also used Qual Core 1400 MHz processor in all iPhones so that all the applications in the phone can run smoothly and the latest Ios8 update was launched to ensure that the processor and operating system of the phone can be synchronized smoothly. These technologies are the strengths Apple possessed that other phones cannot provide. Apple products still have their own reasons to conquer the market because their products are always differentiated from other brands and we can say that the threats of substitution to Apple are relatively low.

The bargaining power of suppliers is one of the forces that play an important role in deciding a company’s competitive advantages. In many other companies in the market, the bargaining powers of their suppliers are low because they have lower cost of changing suppliers and they can eventually seek for other suppliers if the existing ones raise the price of their products. Comparatively, Apple’s suppliers have higher bargaining power due to the distinctiveness of the products that are supplied to Apple. Apple’s supplier supplied highly differentiated products which cannot be