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Apple Inc. Five Forces Analysis (Porter's Model)

Original Content Publication Date: 01/29/2017

Summary

Tech Giant Apple has achieved success as one of the most valuable companies in the world. This article analyzes Apple Inc. from the perspective of Porters Five Forces, analyzing their strengths and weaknesses in each, shedding light on what the company does to ensure leadership despite the negative effects of external factors. 

Key Points

Analysis of Apple's strengths and weaknesses of the Five Forces:
  • Competitive Rivalry or Competition: Strong Force
  • Bargaining Power of Buyers/Customers: Strong Force
  • Bargaining Power of Suppliers: Weak Force
  • Threat of Substitutes or Substitution: Weak Force
  • Threat of News Entrants: Moderate Force

Discussion Questions

  1. What reasons would you use to explain why Apple's bargaining power of buyers is strong and the bargaining power of suppliers is weak?
  2. Would you consider Apple's standing in this analysis of the Five Forces overall good or bad?
  3. As Silicon Valley continues to grow and expand, how will this effect Apple's strength against the threat of new entrants?