Porters 5 Forces Model-Nahid

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    Sources: www.ibef.org10/16/2013 4

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    ABOUT COMPANY

    April 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

    Sources: Mc Kensey report10/16/2013 5

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    Hardware - Mac(personal computer series),Apple RemoteDesktop

    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.com10/16/2013 6

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    PRODUCTS

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    Substitutes

    Supplier

    New Entrants

    Customer

    Existing

    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 andvideo ( 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)10/16/2013 11

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    BARGAINING POWER OF CUSTOMERS

    Customers share music using peer-to-peer networkswithout paying for music (Ares, Limewire)

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

    Consumers/Businesses may reduce spending oncomputers if they fear economic downturns (ConsumerAttitudes & Behaviors)

    Consumer Refresh Cycles

    Sources: Harvard Business review -0910/16/2013 12

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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)10/16/2013 13

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    RECOMMENDATIONS

    FOR COMPANY:

    Lowering the cost of products and maintaining thesame quality standards

    Can form jointventures

    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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