How to write a porters five forces analysis

Our homework writers assist students write high quality case studies, term papers, essays, assignments or homework on management, marketing or economics papers at affordable prices. In our efforts to showcase the writing and research skills of our writers, we regularly publish papers on the most sought after topics. This post presents Porters five forces analysis on uber company and explains reasons the company is so successful.

How to write a porters five forces analysis

Maverick Updated January 31, — 9: The Five Forces model aims to examine five key forces of competition within a given industry. AAPL has achieved massive success as a company despite going through a number of up and down cycles since its founding in InApple achieved the notable distinction of being the first U.

The bargaining power of suppliers, the threat of buyers opting for substitute products, and the threat of new entrants to the marketplace are all weaker elements among the key industry forces. Industry Competition The level of competition among the major companies that compete directly with Apple in the technology sector is high.

Apple is in direct competition with companies such as Google, Inc. Thus, the competitive force within the industry is strong. One thing that makes the industry so highly competitive is the relatively low switching cost.

The threat of marketplace competition is a key consideration for Apple, which it has dealt with primarily through continually developing new and unique products to increase and strengthen its market share position. Bargaining Power of Buyers The element of low switching cost referred to above strengthens the bargaining power of buyers as a key force for Apple to consider.

There are essentially two points of further analysis within this force: For Apple, individual bargaining power is a weak force, since the loss of any one customer represents a negligible amount of revenue for Apple.

However, the collective marketplace bargaining power of customers, the possibility of mass customer defections to a competitor is a strong force.

Apple has been very successful in this area of competition, establishing a large customer base that, basically, would not consider abandoning its iPhones in favor of another smartphone competitor.

This is primarily due to two factors: Such an entrant faces the already identified strong competition within the industry that exists between Apple and its major competitors, all of which are large, well-established firms. The secondary challenge is establishing brand name recognition within an industry that already has several companies, such as Apple, Google, and Amazon, with very strong brand recognition.

Nonetheless, it is important for Apple to continue strengthening its competitive position through new product development and building brand loyalty to place any potential new entrants to the industry at a larger competitive disadvantage. The bargaining position of suppliers is weakened by the high number of potential suppliers for Apple and the ample amount of supply.

Apple is free to choose from among a large number of potential suppliers for component parts for its products. The industries of its parts suppliers, such as the manufacturers of computer processors, are themselves highly competitive. The switching cost for Apple to exchange one supplier for another is relatively low and not a significant obstacle.

Plus, Apple is a major customer for most of its parts suppliers, and, therefore, one its suppliers are very reluctant to risk losing. The bargaining power of component parts suppliers is not a major consideration for either Apple or its major competitors.

how to write a porters five forces analysis

In the case of Apple, an example of a substitute product is a landline telephone that might be a substitute for owning an iPhone.

Trading Center Want to learn how to invest? Get a free 10 week email series that will teach you how to start investing. Delivered twice a week, straight to your inbox.Porter's Five Forces Analysis Sample: UK Bottled Water Industry.

Buyer power. In the UK bottled water industry, buyer bargaining power is high since there are many bottles water lines . Porter's Five Forces and SWOT analysis are both tools commonly used by companies to conduct analyses and make strategic decisions.

Each of the models seeks to .

how to write a porters five forces analysis

Porter’s five forces model is an analysis tool that uses five industry forces to determine the intensity of competition in an industry and its profitability level. [1] Understanding the tool. Five forces model was created by M.

Porter in to understand how five key competitive forces are affecting an industry.

Porter’s Five Forces In Action: Sample Analysis of Coca-Cola — Valuation Academy

The porter’s 5 forces is a useful framework for competitive analysis within industry. Competitive analysis is lead into strategic planning and the development of a tailored competitive strategy that expects to exploit the situation.

Porter’s Five Forces In Action: Sample Analysis of Coca-Cola Since its introduction in , Michael Porter’s Five Forces has become the de facto framework for industry analysis. The five forces measure the competitiveness of the market deriving its attractiveness.

The Porter’s Five Forces tool is a very powerful tool. It is simple but excellent for judging exactly where power lies.

As it helps to understand not only the strength of current competitive position but also the strength of an expected position, it is very useful.

Analyzing Porter's Five Forces on Apple (AAPL) | Investopedia