Porters Five Forces Analysed The External Environment Industry Marketing Essay

Porters 5 Forces Analysed The External Environment Industry Marketing EssayAmong the different choices, orchard apple tree has chosen the eminence focalization strategy in the broad industry. The invention and development of products by Apple be its highly unique attributes, with devices such as the iPhone, iPod and iPad where the use touch screening and other interfaces to operate the products. Apple spends billions of dollars every year on RD (Research and Development) to develop and promote its products in order to achieve superior quality over competitors products. Apple slogan is Think Different, which drives them to innovate and provide high quality regarding their products. Apples markets are global, but they are focusing on active markets such as America, the EU and near Asian countries. However, Apple focuses on a market segment where customers clearly feel that Apple provides value for its customers. In addition, Apple had a affirmatory growth rate during the economi c crisis of 2007-2009 (Business week, 2010). Apples premium price strategy and its success see come a significant barrier to competitors such as Nokia, Motorola, HTC and the E-book by Sony.Porters Five Forces AnalysisPorters Five Forces analysed the external environment of the industry in order to give a better understanding of the strengths and weaknesses within the organisation. These analyses give the party the ability to identify the opportunities and threats from external factors (Harrison, 2003). These forces includeThreat of youthful entrantsFor each of its product lines, Apple, like any other company, faces rigorous competition. This high-tech industry requires perpetual research and development (RD). This sector is difficult for new companies to enter because new entrants must spend a large amount of capital on RD and on the advertising and promotion of their brand. There are some dominant producers in this sector such as Apple, Microsoft, Dell and Sony, who share the majority of the market. Apple should be aware of new entrants because they may come up with surprisingly better technology or a better product. However, these new entrants are less of a threat because it is difficult to enter and penetrate the market in a limited time (Harrison, 2003).Power of the supplierPorters second force states that the bargaining condition of suppliers imposes a threat to any company. It to a fault includes, the availability of substitute suppliers which is an important factor in determining the power of the supplier. Suppliers are known as trine parties in this industry, and they are classified in two groups. The first group makes the major parts for the products. This group is not unbendable because of the availability and easy of alternate the items they make, such as batteries, wire connections, screens and other internal components. In contrast, the second group provides accurate parts and important programmes such as flash-memory and DRAM. This group is strong because of their specialized and advanced products, as well as the lack of alternative products (Nistor, 2010). There are some suppliers who dominate the market for example, Intel, Microsoft and Sony. So, it is important for Apple to have a good relationship with its suppliers.Power of the buyerThe buyers bargaining power is very high in the industry because competitors offer a wide shed of similar products with competitive prices. The Apple Corporation faces a moderate threat from buyers because they have a lot of products that consumers can choose from. In addition, the threat of buyers comes from their beseech for new features in Apple products. However, there are a large number of companies that offer similar products and there is quite a big differentiation in price and performance. Therefore, loyalty is often shown towards a specific brand because there are not many differences in the quality and price among brands (Nistor, 2010). Buyers are often more sensitive to brand rather than price. Apples customers are individuals, education departments, enterprises, governments and creative customers. So, the variety of consumers and their needs has a direct impact on Apples future strategies.Threat of substitutesThe technological environment is changing fast every day. There are not many substitutes in this industry because of the high-tech features. However, alternatives are always available from competitors. If some other company such as BlackBerry, Google, Samsung or Microsoft come up with new technology or the same pleasing of phone at a lower price or with more features at the same price, then this is a problem for Apple (O Grady, 2009). Customers usually unravel to look to the latest technology instead of traditional methods. Apple has the ability and efficiently to design and develop its own hardware and application software to become unique and distinct from its competitors.Competitive rivalryThe competition in this industry is very high , almost in all areas of business, because of the continuing requirement to provide new products all the time. Competitive prices, new products, design innovations and technology are the main factors that Apple has to compete with other international companies on, such as IBM, HP, Acer and Dell. The consumers choices also differ some prefer to save some cash rather purchase high performance specification technology and some prefer the newest technology. So, the allow for is that companies implement different strategies for example, low-cost and best-cost strategies. Some manufacturers offer products at the lowest price in an attempt to cut their costs by ignoring everything except some basic features. Some other companies in the middle price range, such as Dell and HP, focus on attracting customers by offering varying prices. And the croak of the range companies, like Apple, gain customers through their high quality products, features and innovative design, which makes their produ cts popular all over the world (O Grady, 2009).APPENDICESPorters Generic Strategy modelPorters Five Forces model