Select a popular product or company that you are familiar with, such as XBOX 360 or VAR. Apply Porter’s competitive forces model to that product and/or company. Which of the four generic strategies is the company using? please do it without plagiarism Course: Information resources management

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EXPERT ANSWER

APPLE.INC ANALYSIS:

According to Apple’s five forces study, which is based on Porter’s model, the intensity of external factors is as follows.

Buyers’/customers’ bargaining power Is a powerful force

Supplier bargaining power — weak strong

Competitive rivalry – strong force

The threat of substitution – weak force

New entrant threat – moderate force

According to the Five Forces analysis, Apple continues to focus on rivalry and the purchasing power of customers, which are two of the most significant outside variables impacting the company. Furthermore, the Five Forces study suggests that Apple must focus its efforts on these two external components in order to maintain its dominance in the industry.

1. Buyers’ negotiating power is significant in influencing Apple. This section of Porter’s Five Forces analysis determines how buyers affect organisations. In Apple’s case, customers’ strong power is influenced by the following external factors:

Low switching cost – strong force

Small size of individual buyers – weak force

Clients may easily switch brands, making them pioneers in persuading organisations such as Apple to guarantee consumer loyalty. However, each purchaser’s purchase is little when compared to Apple’s total earnings. At the individual level, this state renders customers helpless. In any event, while switching from Apple to a competing brand is not difficult, buyers continue to exert considerable pressure. As a result, this component of the Five Forces suggests that Apple must integrate buyers’ or customers’ dealing intensity as a standout amongst the most critical aspects.

2. Apple is confronted with the poor negotiating strength of suppliers. This section of Porter’s Five Forces display depicts the effect of suppliers in pressing their demands. In Apple’s case, suppliers have limited negotiating leverage due to the following external factors:

The high number of suppliers – weak

The High in general supply – weak

Regardless of the fact that Apple has less than 200 segment providers for its things, the organisation has additional options because there are various providers all over the world. Because of this circumstance, individual suppliers are powerless to compel corporations like Apple to meet their demands. In this regard, there is an anomalous situation of supply for the majority of Apple merchandise. As a result, this component of the Five Forces reveals that Apple does not need to coordinate the bargaining power of suppliers in order to create mechanisms for development as well as industry leadership.

3. Apple faces intense competition. The power of influence that rivals have on each other is determined using the Five Forces analysis. In Apple’s case, the influence is determined by the following external factors:

The high forcefulness of firms -strong

The Low switching cost – strong

Companies such as HP, Samsung, Sony, Dell and others are strong rivals to Apple. Such tenacity may be shown in rapid progression. Customers may also simply switch from APPLE to certain other brands since the switching cost is inexpensive.

4. The possibility of replacement has little sway on Apple’s company. This component of Porter’s Five Forces model determines the quality of alternative products in attracting clients.

Substitutes for Apple products are readily available on the market. For example, instead of using the iPhone to capture images, people may easily use computerised cameras. They can also make calls using landline phones. In any event, because they have limited characteristics, these alternatives perform poorly.

5. Apple is confronted with the mild danger of new entrants. This section of Porter’s Five Forces analysis demonstrates the impact and likelihood of new competitors joining the market.

Starting a business to compete with companies like Apple necessitates a large amount of cash. Furthermore, it is difficult to establish a strong brand in order to compete with large corporations such as Apple. These factors make new entrants vulnerable.

GENERIC STRATEGY:

Apple’s Generic Strategy is based on distinctiveness. This is a method of making your product distinct from those of competing brands. Apple is most known as the creator of the Mac, iPod, and airpod, as well as the iPhone. These are all premium things, and despite the fact that they are offered at premium prices, the quality of these items is unrivalled. Along these lines, Apple’s competitive success stems mostly from phenomenal innovation. Nevertheless, Apple’s products are as stunning in terms of design and appearance as they are in terms of creativity and execution.