Porter's Five Forces Model for Business Strategy (P3)

This presentation covers Porter's Five Forces Model for Business Strategy (P3) and how it can help in analysing the competitiveness of a firm in an industry. It discusses the five forces that determine the competitiveness of a firm, including competitive rivalry, supplier power, buyer power, threat of substitution, and threat of new entry. The presentation also provides an analysis of Apple's industry using these five forces. References are included at the end.

Business Strategy (P3)

Content
 Introduction
 Porters five forces
 Conclusion
 References

Business Strategy is referred to as the set of steps and
rules that are taken up by the management to have a
better competitive hold on the business environment.
These are combination of rules taken and the actions
performed to achieve the business goals and
organisational goals. This PPT will cover Porters five
forces of company.
Introduction

Application of Porter’s Five Forces model
Porter's five forces is a useful tool to identify the competitiveness in an industry and how
these factors influence position of any business in the industry (Wee, 2017). It is an
industry study with regard to a company in question. The five forces that derive the
competitiveness of a firm in an industry are
•Competitive Rivalry
•Supplier Power
•Buyer Power
•Threat of Substitution
•Threat of New Entry

Competitive Rivalry
Competitive Rivalry talks at what level the
firms are competing. How the rival firms are
reacting to each other. The competitive rivalry
in the industry of Apple is strong as the
competitors like Google, HP, Samsung
expends a significant capital on research and
development

Bargaining power of Suppliers
Supplier Power measures the level of suppliers
that are there in the industry and at what level
the company holds the power to bargain from
them. This power of suppliers is weak in case
of Apple as the potential suppliers in the
industry for Apple are in significant number.

Bargaining power of customers
Buyer Power measures the bargaining power of
the buyers. Less number of buyers in the
industry holds this power. For apple, individual
bargaining power of a buyer is weak as this will
not have any significant impact on the revenue
of firms.

Threat of Substitute
Threat of Substitution refers to the likelihood of your customers to find substitute
for your product (Sun and et. al., 2018). This is low for Apple due to the
reputation it holds in the market and substitute products have limited capabilities
compared to apple's products.

Threat of new Entrants
Threat of New Entry refers to the ability of new businesses to enter the industry. This
can pose a threat to existing firms as new businesses will have innovative products.
Apple's brand recognition and high cost of establishing a company within the industry
makes this potential threat relatively low for Apple.

Conclusion
From the above mentioned PPT, it has been concluded that the a business need to
follow a set of models to come up with the best business strategy. The Porters give forces
helps in analysing the industry so that a company can take the competitive edge over
others.

References
• Eskerod, P. and Larsen, T., 2018. Advancing project stakeholder analysis by the
concept ‘shadows of the context’. International Journal of Project Management. 36(1).
pp.161-169.
• Forleo, M.B. and Palmieri, N., 2019. The potential for developing educational farms: a
SWOT analysis from a case study. The Journal of Agricultural Education and
Extension. 25(5). pp.431-442.

Thank You