Porter’s 5 forces model case apple inc

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04/10/2023 1

PORTER’S 5 FORCES ANALYSIS

-Aditya, Devarsh,Foram , Jonty

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04/10/2023 4Sources: www.ibef.org

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ABOUT COMPANYApril 1st,1976 - Founded

January 3rd,1977 - Incorporated

Headquarters - Cupertino, California

Co-founders - Steve Jobs, Steve Wojniak

CEO - Steve jobs

Industry - Computer software, computer hardware, consumer electronics.

Revenue - US$ 19.3 Billion 5 FO

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Sources: Mc Kensey report

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Hardware - Mac(personal computer series),Apple Remote Desktop

Software - Mac OS X, Mac OS X Server ,Quick Time, i Life, i Work, Logic pro, Cinema Display etc.

Consumer Electronics - i pod, i pod hi-fi, i phone, Apple TV

Employees - 19,787 full-time ; 3,399 temporary (March 31,2007)

Retail stores - 183( 1st in Manhattan, New York)

Competitors - HP, IBM, DELL

PRODUCTS AND FIGURES

Sources: www.apple.com

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PRODUCTS

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Substitutes

Supplier

New Entrants

CustomerExisting

rivalry in the industry

Threat of new entrants

Bargaining power of buyers

Substitute products & services

Bargaining power of the suppliers

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EXISTING RIVALRY

Windows OS and media player for playing music and video ( Microsoft)

Competition to Mac OS X (Linux)

Alternate sources of computer hardware (Dell, HP, Lenovo)

Small stylish MP3 players (Creative, Samsung, Sony)

Online music stores similar to itunes stores (Napster)

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THREAT OF NEW ENTRANTS

Streaming audio and video with v-cast (Verizon)

On demand online services (similar to i-tunes)

New entrants with disruptive technology (The “next google”)

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BARGAINING POWER OF SUPPLIERS

Suppliers of processors and computer memory (Motorola, IBM, Intel)

Strategic alliance/supplier of Mac (Microsoft)

Supplier of tv and movies (Disney, ABC, Fox, Sony)

Sources of music (BMG, Sony, Warner, Universal)

Magazine :outlook (April-2009)

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BARGAINING POWER OF CUSTOMERS

Customers share music using peer-to-peer networks without paying for music (Ares, Limewire)

Retailers may pressure for lower prices or better terms (Distributors)

Consumers/Businesses may reduce spending on computers if they fear economic downturns (Consumer Attitudes & Behaviors)

Consumer Refresh Cycles

Sources: Harvard Business review -09

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THREAT FROM SUBSTITUTES

Satellite radio for music (XM, Sirius)

Entertainment media, media and music (XBOX, PS2)

Alternative means to acquire music (Music CDs, DVDs)

Alternative sources for videos (Cable, Broadcast, Theatres)

Magazine :PC-1 (April-2009)

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RECOMMENDATIONS

FOR COMPANY:

Lowering the cost of products and maintaining the same quality standards

Can form joint – ventures

Knowledge Management

More number of retail stores for easy access

Continuous innovation to expand

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RECOMMENDATIONS

FOR OTHERS:Do not compromise on price for quality

Choose the products based on individual needs

Be unique and different

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THANK YOU

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