Apple Porter's Five Forces

Google’s mission is to organise the world’s information and make it universally accessible and useful. Google’s main business is the provision of web search and delivering both performance and brand advertisement, among other online products. The company’s main source of revenue is from digital advertisement related activities, which accounts to 92% of the revenue. The remaining 8% of the revenue comes from other products that Google sells like; apps, hardware, subscription fees for cloud platform, maps, and other services. The primary listing for Google Inc. is on the NASDAQ, but it is also traded on 18 other exchanges in 10 countries (Google, Financial Times).

Sales - Apple has a specific functional area based on sales. The sales department of a business handles how the products will be sold and helping customers find a suitable product for their needs. They organise sales promotions (or advertising), respond to customer enquiries about their products, and negotiate discounts for customers; which enhances customer satisfaction and keeping customer records up to date. E.g. Apple found that distributing their phones to sell at other shops would broaden their market and create a lot of word of mouth which would be essential to the growth of the business. The shops they distribute the phones to always try to find ways to discount their customers which always creates customer satisfaction.

Five forces which would impact an organization's behavior in the market. Understanding the nature of these forces provides organizations the required insights to enable them to formulate the appropriate strategies to be successful in their market (Thurlby, 1998).

Defining an industry can be described as drawing a line between the established competitor and the substitute products offered by competitors outside the industry (Porter 1998). “Porter’s five forces provide a framework for an industry and business strategy development to drive the five forces that determine the competitive intensity and attractiveness of a market. The Porter’s Five Forces model helps identify where improvement can be made regarding competitive forces, threat of potential entrants, bargaining power of buyers, and bargaining power of suppliers and threats of substitute products.

There is an extraordinary breadth and depth and tenure among the Apple executive team, and these executives lead over 35,000 employees that I would call “all wicked smart.” And that’s in all areas of the company, from engineering to marketing to operations and sales and all the rest. And the values of our company are

The competitive advantages realized by Apple have catapulted the organization to the great heights it enjoys presently. The hardware design forms one of the major competitive advantages. Indeed, the products of Apple are elegant and well designed and every vendor concurs that the products have no equal in the market in terms of design. The laptops, desktops and phones produced by Apple are always designed right for the first time and this puts them ahead of the competitors in the market. Another area where Apple has much competitive advantage is marketing of products (Schulze, 2011).

“Apple was two months from bankruptcy” in September 1997 which led to CEO Steve Jobs to reconstruct their plan. In order to bring Apple back up into the competitive market, Jobs implement a new strategy which “shrunk Apple to a scale and scope suitable to the reality of its being a niche produce in the highly competitive personal computer business. He cut Apple back to a core that could survive” (12). What made Job successful was focusing on the sources and barriers to be successful in the market and to utilize the opportunities that came by. The strategy of eliminating unnecessary cost or reducing risk help transform Apple’s business

According to these , the Delta has five different categories to satisfy the total fleet in each year such as pilots, purchased goods, maintenance, aircraft ownership, and other. The pilots, purchased goods, maintenance, and aircraft ownership charged most of the total fleet until 2005. However, since 2006, the purchased goods have average 58% of the total percentages from 2006 to 2016. The maintenance decreases to 15% and the aircraft ownership decrease to average 6%. As a result, the Delta was losing pilots after 2006 and making up after 2011. The old aircraft Delta sold and the Delta was trying to retire all the old aircraft without repairing. However, the Delta was focusing on the goods; the airline Delta got a trust from passengers,

World leading corporations and tech companies are operating in the United States of America. Since 2010, Apple has been one of the most valuable among other companies in the world. When people hear Apple, they imagine Iphone or Macbook and other gadgets of Apple Company, not a fruit. World number one Supply chain company for past 7 years. Apple runs their products successfully in the market since they launched iPod on October 23, 2001. Only 14 years have passed and now Apple has a huge amount of manufacturing. Different types and variety of product. All of this 14 years Tim Cook was in charge of operating management and supply chain, he played a key role in Apple’s success. How

As Thompson (2015) has discussed, the world is changing fast and organizations must be flexible in handling changes to be able to thrive well or they may experience dilemmas. In 1997, Apple Company, which almost reached bankruptcy ousted its that time CEO, Gil Amelio, where Steve Jobs replaced him and declared himself interim CEO. Apple that time is experiencing a disruptive change, a change that is radical and immediately happening, in other words unexpected. However, they were able to response to it quickly and prevented the company to hit the very bottom by bringing back Steve Jobs. Jobs had so much idea with him, which the company needed most at that time (Time, 2016).

Capabilities are the firms ' capacity to deploy resources that have been purposely integrated to achieve a desired end state (Hit, Ireland, and Hoskisson, p.81).In the case for Apple the firm 's unique marketing abilities, engineering skills, creativity, and R&D. Apple 's distinctive core competencies lie within their ability to provide quality products through their vertically integrated inbound activities. Not only are Apple 's finished goods differentiated by quality, they are innovative and cutting edge. Innovation is driven by consistent investment in R&D. Apple has also shown competencies in building brand reputation and generating buzz for its products. Their marketing campaigns have been successful and remain a value added activity. One of Apple 's key capabilities comes from co-founders, Steve Jobs, who has effectively manage to steer Apple into a new market and gain new market share. Apple has effectively integrated its supply chain and distribution channels with the installation of SAP R/3. It now offers built to order machines that can compete with Dell. Apple also has become a key innovator with products such as the

Apple’s supply chain is a huge reason for its success. However, just because they’re prospering now, it doesn’t mean that they can just sit back and rest on their laurels. There may be certain competitors or market forces that come into play in the future which will force Apple to either adapt their ways of doing business or get left behind.

This paper addresses the use of Porter’s Five Forces model and how it can benefit Broadway Cafe by identifying and analyzing the effect of these forces on its business. The benefits include improved decision making, faster time to market, better productivity, improved competitive advantage, more profits and greater customer satisfaction. It also helps in achieving operational excellence.

Porter’s Five Forces model is used to evaluate the degree of rivalry between competitors in a given industry through assessing the four forces that lead to this outcome. These forces are the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, and the threat of substitute products.

Apple Inc. is the most revered corporation of the USA, both in terms of brand equity and market capitalization. The company’s international competitive strategy is focused on the innovative product development, which Apple controls through its eight business segments: Portables, Desktops, iPads, iPhones, Music related products and services, peripherals and hardware (Lam et al. 2005).