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Porter's five forces model of Apple
Transcript of Porter's five forces model of Apple
New market entrant
A demand of large amount of capital to compete in price and brand recognition against well-known brands.
There is a concern about copyright which makes new companies difficult to adapt.
Developing new and advanced technology to active and compete for the market share.
Substitute products and services
Many new devices with more functions, various models and competitive price
Alternative methods to share music and media for free (Peer to Peer,...) instead of paying on iTunes
Apple's OSX is the most suitable choice if people don't choose to use operating system of Microsoft. However, Apple doesn't allow products of other companies using OSX which is a limitation for its customers
Customers consider Apple's products as unique products, which help them to gain the brand loyalty of customers
Apple needs outsourcing and because of that they made contracts with many suppliers which brings them advantages in terms of negotiation.
However, with a wide range of suppliers, Apple still need concern about customized supply such as Intel®'s microprocessors
Companies ửworking in smartphone industry such as Samsung, Nokia, etc
Other companies which supply computer hardware (HP, Dell, Asus,...)
MP3 and MP4 players of other brands like Sony, Samsung,...
Competing against Spotify, Foobar,... in music storage field.