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Introduction
In April 1976, Steve Wozniak and Steve Jobs were
established Apple together after they graduated
In the past ten years, Apple has expanded into a
very intricate company
The company operates in five sections:-
Americas, Europe, Japan, Asia-Pacific and Retail
Consumer Electronics
Consumer Software
Porter’s 5 Forces
Rivalry Among
Competitors
Threat of New
Entrants
Bargaining Power of Buyers
Threat of Substitute Products
Bargaining Power of Supplier
1. Threat of New Entrants
Barrier to entry because it is too high in cost
Cost of product differentiation
To prevent from plagiarismApply patents for inventions
Different target market
Target customers with
high salary range
Keep costs downEconomies of scales
High brand recognitionSuccessfully develop its
brand name
2. Bargaining Power of Supplier
Unique products
Has more power over its supplier
Able to make strong demands
3. Bargaining Power of Buyers
Has millions of buyers (individual & larger corporations)
Have the ability to increase its products price
Need to ensure the price is not drastically increases
Comparison
SIZE OF TOUCH SCREEN
-Samsung Galaxy S3
-4.8 inch
-iPhone 4S -3.5 inch
31 May 2012,when
Samsung Galaxy S3 first
made available in
Malaysia
-RM999
•PRICE OF SMART
PHONE
-Samsung Galaxy S3 –
RM2199
-iPhone 4S-RM2499-
RM3099
5. Rivalry Among Competitors
Computers companies
Dell, HP,ASUS, ACER, Sony
Other computer manufacturers
Too much
choices.
Difficult for
customers to
make choice
APPLE
Limited products
choices,
Drive more sales &
beat competitors