It will help to present in porter five forces.

1. Porter's Five Forces
Apple
Prepared by | BAPPI DAS
ID : 71517053
University of dhaka (THM)

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

3. Porter’s Five Forces Model
Competitive
Rivalry
Threat of
Substitutes
Products
Bargaining Power
of Buyers
Bargaining Power
of Suppliers
New Entrants

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

5. About Company
April 1st, 1976 – Founded
January 3rd,1977 – Incorporated
Headquarters – Cupertino, California
Co-founders – Steve Jobs, Steve Wojniak
CEO – Tim Cook
Industry – Computer software, computer hardware, consumer electronics.
Revenue- US$ 75.9 Billion

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

7. Products
Competitors

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)


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”)


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)

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

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)

13. opportunities
threats
weakness
Strengths

14. Customer Royalty
Unique Products and
services
Strong Leading and
Strong Marketing
Share Increase

15. Add new product
Promote new segment
International reach
Strong growth of
mobile market

16. Product price
Product launch delays
Weak distribution
channel
Limited product

17. Competitor with new
technology
Changing customer
preferences
Very limited ability to
customize other smart
phone in the market

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

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