Sustainable Business Practices and Strategies - Evaluation of Competitive Forces

Running head: SUSTAINABLE BUSINESS PRACTICES AND STRATEGIES
Sustainable Business Practices and Strategies
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1SUSTAINABLE BUSINESS PRACTICES AND STRATEGIES
Table of Contents
Evaluation of Critical Competitive Forces..........................................................................2
Explanation Regarding the Selection of Critical Forces......................................................5
Assessment of Blue Ocean Strategy....................................................................................6
Explanation Regarding New Entry or Substitute Threats....................................................9
Strategic Implications of Competitive Forces.....................................................................9
References..........................................................................................................................11

2SUSTAINABLE BUSINESS PRACTICES AND STRATEGIES
Evaluation of Critical Competitive Forces
Competitive strategies developed by Apple Inc are deemed to be relied on the
requirement to deal with the external environment forces as such forces can affect its shares and
revenues (Al-Arafati, 2016). The competitive forces along with the underlying dynamics within
the Smartphone industry that might threaten Apple Inc are explained below:
Figure 1: Five Forces Analysis of Apple Inc
(Source: Apple., 2018)

3SUSTAINABLE BUSINESS PRACTICES AND STRATEGIES
 Competitive Rivalry (Strong Force): Apple Inc faces strong force of competition. The
five forces analysis indicates the intensity of the impact competitors have on one another.
In the company’s case impact is relied on the external factors such as increased
aggressiveness of companies and low switching cost (Chiang, 2016). Competitor firms
including Samsung, Blackberry, LG ad few more are observed to give tough competition
to Apple Inc. This type of aggressiveness is evidenced in rapid innovation, aggressive
advertising along with imitation. Moreover, low switching cost indicates that it is simple
for its consumers to shift from Apple Inc to other brands that indicate tough competition.
This indicates this force make a significant contribution to strategic formulation of Apple
Inc.
 Bargaining Power of Buyers (Strong Force): This force is deemed to impact Apple
Inc’s business as it indicates the way buyers’ impact its business (Fitzpatrick, Nguyen &
Cayan, 2015). In the company’s case, strong power of buyers is relied on factors such as
low switching cost and small size of individual buyers. It is easy for the buyers to shift
brands that make them powerful in compelling Apple Inc to maintain high consumer
satisfaction. Moreover, purchasing power of individual buyers is strong compared to the
company’s overall revenues. Such situation makes its consumers weak at individual
level. Conversely, as it is simple to shift from Apple to other brands, buyers are observed
to attain higher force (Grant, 2016).
 Bargaining Power of Suppliers (Weak Force): Apple Inc observes weak force in this
factor as porters five forces model indicates the impact of suppliers in imposing their
demands. In the company’s case suppliers’ weak power is relied in certain external
factors such as high overall supply and increased number of suppliers. Even if Apple has