Analyze Apple Using Porter’s Five Forces Model

Chapter 1 Project

1. Analyze Apple using Porter’s Five Forces Model. Please proof for spelling and grammar before submitting.

Answer 1. Buyer power is not a threat to Apple because Apple has millions of buyers and even if price increases people will still buy it. Apple has the power to change the prices if they want to because the OS in Apple are fond upon to some people that they are used to working with Apple products and will continue to do so despite what the prices say. Supplier power is a small threat to Apple since they supply different materials that maybe used in generating a product of Apple. With that in mind suppliers do have some bargaining power in order for them to supply their products to Apple in order to create products such as IPhones, IPods, IPads, or Macbooks. Threat of substitute products or services do exist as a threat concerning Apple because people can substitute a regular mp3 player in contrast to the IPod, the Samsung Galaxy phone instead of the IPhone and, Microsoft operated computers instead of the Apple OS computers. Threat of new entrants are significantly low since a new competitor would have to make their products similar to Apple standards and have all the functions in the phone working properly such as Wi-Fi, Apple pay etc… in order to gain the interest of customers. Rivalry among existing competitors is a hazard to Apple because of Samsung and its new technology. Samsung phones for example offers everything that Apple IPhone offers. Both Phones are good to use and Samsung phones are less expensive than Apple IPhones. With Samsung writing its name across the globe with new technology especially its Galaxy phone editions; Apple does have a big competitor to deal with.