A Report on Apple's Porter's Five Forces Analysis (Marketing)

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Added on  2022/08/22

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This report provides a detailed Porter's Five Forces analysis of Apple, examining the competitive forces that shape its market position. The analysis covers five key areas: competitive rivalry, bargaining power of buyers, bargaining power of suppliers, threat of substitutes, and threat of new entrants. The report highlights that Apple faces strong competitive rivalry, but also demonstrates strong bargaining power with its customers, while also highlighting the high bargaining power of sellers. The report also points out that the threat of substitutes is low, and threat of new entrants is moderate. The report cites relevant sources to support the analysis. This assignment is useful for students looking to understand market analysis and business strategy, particularly in the context of the technology industry. A graphical representation of the analysis is also included.
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Running head: PORTER’S FIVE FORCES
PORTER’S FIVE FORCES
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PORTER’S FIVE FORCES
Apple have been one of the leading technology based organization. However there is a
proper requirement of performing market analysis for better assessment of their business process
(Sathappan 2017). Hence usage of Porter’s five forces will be acting beneficial in the process.
PORTER’S FIVE FORCES
The major 5 factors that are considered in the process are namely:
Competitive rivalry (Strong force): There is not much competition in market for Apple.
The major reason of this aspect is because of the distinct platform that it uses. Apple uses an
operating system that is different form rest of the brands and hence it has a separate audience
base
Bargaining power of buyers (Strong): Bargaining power of buyers is lowest in compared
with their competitive brands. This is due to high demand of the products manufactured by
Apple.
Bargaining power of seller (Weak force): Bargaining power of seller is very high. This is
because with the price that is set the products have been getting sold and demand have been high
(Lewis 2017).
Threat of substitute (Weak force): There is very less chances of getting substituted as the
operating system that Apple uses is manufactured by them only and hence no other brand can use
the same.
Threat of new entrants (Moderate force): The threat of new entrants have been always
high as technology have been evolving and new brands have been entering the market.
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PORTER’S FIVE FORCES
References
Lewis, R. (2017). Porter's Five Forces of competitive advantage.
Sathappan, S. (2017). Strategic Management Analysis–Apple Watch.
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