what is the relevance of porters five forces model in external environment? 400-500 words
Answers
Among the different choices, Apple has chosen the differentiation focus strategy in the broad industry. The invention and development of products by Apple are its highly unique attributes, with devices such as the iPhone, iPod and iPad where the use touch screen and other interfaces to operate the products. Apple spends billions of dollars every year on R&D (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. Apple’s markets are global, but they are focusing on active markets such as America, the EU and some 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 positive growth rate during the economic crisis of 2007-2009 (Business week, 2010). Apple’s premium price strategy and its success have become a significant barrier to competitors such as Nokia, Motorola, HTC and the E-book by Sony.
Porter’s Five Forces Analysis
Porter’s 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 company the ability to identify the opportunities and threats from external factors (Harrison, 2003). These forces include: