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Apple's Five Forces Model

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The Porter Five Forces Model The Porter Five Forces model would help to tackle the industry supply side of micro-economic analysis and provide an analysis framework for assessing competitive intensity in each of the key product or market segments. Also, guiding in gauging industry pricing and profitability in the future. This model include the following Internal rivalry,Threat of new entrants ,Ease of substitution, Customer power and Supplier power. Internal Rivalry The rivalry between apple and other major companies are very high in the industry, especially with Google and Samsung, these companies have put a significant amount of money in research and development just like Apple. Hence, the competitive force inside the market is strong. Threat of new entrants The new comers to the industry that could threaten Apple is relatively very minimal .The reson behind is the extremely high cost of establishing a firm inside the market and additional high cost of establishing brand name recognition. Firstly, any new company to market smart phone or personal computer needed massive amount of money to spend on research and development and production to have a product portfolio before bringing the product to market and start to make income. Secondly, the competitors in the existing market are big and well established companies. Apart from this, establishing a new brand is very tough as there are many major players in the industry, which have strong brand recognition. Perhaps, there

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