1- With Steve Jobs, Apple decided to introduce the iPhone. This was a huge success. But how sustainable is Apple’s competitive advantage in the market of smartphones? Here again Porter’s 5 force framework might be of any help.
Apple’s new iPhone had definitely a huge success in the market of smartphones, this success was all due to many examined factors that will later be explained using Porter’s 5 force framework.
But what is Porter’s 5 force framework?
“Porter’s 5 force framework is basically a tool for analyzing the competitiveness in any given industry, and for identifying your strategy’s potential profitability”- The Mind Tools Content Team. These 5 forces are:
A. Competition in the industry
B. Buyer Power
C. Supplier Power
D. The Threat of Entry
E. Threat of Substitutes
On the January 9, 2007 Steve Jobs introduced the iPhone to the world at the Macworld convention, and later, on June 29, 2007, …show more content…
There are essentially two points of further analysis within this Force: 1) The individual bargaining power 2) collective bargaining power. For a big company like Apple individual bargaining power won’t affect the Iphone’s Revenue, since the loss of any one customer represents a neglible amount on revenue for Apple. On the other hand, Collective bargaining power is what caused the real theat to the iPhone, because the possibility of mass customer defections to a competitor was a strong force. Apple counters this threat by continuing to make supstatial capital expenintures in R&D, enabling Apple to keep renovating and improving the iPhone. What differentiated the iPhone from the competition was its simple user interface and uniqueness, consequently, that has worked in the favor of Apple which devoloped brand loyalty which has led to high Iphone
Apple’s new iPhone had definitely a huge success in the market of smartphones, this success was all due to many examined factors that will later be explained using Porter’s 5 force framework.
But what is Porter’s 5 force framework?
“Porter’s 5 force framework is basically a tool for analyzing the competitiveness in any given industry, and for identifying your strategy’s potential profitability”- The Mind Tools Content Team. These 5 forces are:
A. Competition in the industry
B. Buyer Power
C. Supplier Power
D. The Threat of Entry
E. Threat of Substitutes
On the January 9, 2007 Steve Jobs introduced the iPhone to the world at the Macworld convention, and later, on June 29, 2007, …show more content…
There are essentially two points of further analysis within this Force: 1) The individual bargaining power 2) collective bargaining power. For a big company like Apple individual bargaining power won’t affect the Iphone’s Revenue, since the loss of any one customer represents a neglible amount on revenue for Apple. On the other hand, Collective bargaining power is what caused the real theat to the iPhone, because the possibility of mass customer defections to a competitor was a strong force. Apple counters this threat by continuing to make supstatial capital expenintures in R&D, enabling Apple to keep renovating and improving the iPhone. What differentiated the iPhone from the competition was its simple user interface and uniqueness, consequently, that has worked in the favor of Apple which devoloped brand loyalty which has led to high Iphone