Apple Porter's five force model A model for industrty analysis

1. Porter's Five Forces
A MODEL FOR INDUSTRY ANALYSIS
Apple
Prepared by | Rishabh RJ
CSE 4th
sem Porter's Five Forces Model of Apple by Rishabh

2. Michael E. Porter
Born in 1947.
Professors in Harvard Business School.
 Introduced Porter's 5 Forces Model.
Written 18 books & over 125 Articles
Porter's Five Forces Model of Apple by Rishabh

3. Porter’s Five Forces Chart
Porter's Five Forces Model of Apple by Rishabh

4. Apple
So I am here to describe you Porter’s Five Forces Model for
the analysis of “Apple”
Porter's Five Forces Model of Apple by Rishabh

5. 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
Porter's Five Forces Model of Apple by Rishabh

6. Products and Figures
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
Porter's Five Forces Model of Apple by Rishabh

7. Products
Competitors
Porter's Five Forces Model of Apple by Rishabh

8. 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)

Porter's Five Forces Model of Apple by Rishabh

9. 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”)

Porter's Five Forces Model of Apple by Rishabh

10. 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)
Porter's Five Forces Model of Apple by Rishabh

11. 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
Porter's Five Forces Model of Apple by Rishabh

12. 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)
Porter's Five Forces Model of Apple by Rishabh

13. 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
FOR OTHERS:
Do not compromise on price for quality
Choose the products based on individual needs
Be unique and different
Porter's Five Forces Model of Apple by Rishabh

14. Porter's Five Forces Model of Apple by Rishabh