Essay on Michael Porter

Words: 1195
Pages: 5

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 …show more content…
Besides, each of these competitors has a wide-ranging of computing systems that designed for several types of users. Dell is one of the company that threaten Apple. Dell promotes its Inspiron line for laptop users and the Dimension line of computers for desktop users. The unique features of Dimension and Inspiron lines and the ability of providing varying selections for consumers with diverse needs from Dell immediately appear that Apple's has a wide range of alternatives in the market. Although there is a various alternative products in the market, but Apple products are differentiated from others. Especially the operating system, while Dell, HP, and Gateway each use the Microsoft Windows Operating System and an Intel or AMD based CPU, Apple’s decided to come out with their own in-house OSX operating System and an IBM derived Power Processor CPU. The fourth theory that involved in the Porter’s force would be bargaining power of buyers. The differentiating product that focuses on Apple is both the personal computer market and the portable music product. Both Macintosh line of products and the iPod have a signature style and innovative features that set them apart from their competitors. Apple achieve consumer loyalty by providing high quality products and because of this, the consumers of Apple are less price sensitive when they purchases iPod and Macintosh, as it is very hard to search a product