Essay about Competitive Forces Of The International Express Delivery

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Competitive Forces Analysis
The five forces model utilizes competitive forces within an industry to determine how the industry in which a company competes affects its overall value and could cause future changes in this value. The forces that were included by Porter in this model include the threat of entry, power of suppliers, the power of buyers, the threat of substitutes, and rivalry among existing competitors (Dobbs, 2012; Karagiannopoulos, Georgopoulos, & Nikolopoulos, 2005). I will discuss each of these in the analysis below through the context of the international express delivery or package courier market. The risk that new competitors will enter a market, called the threat of entry, is measured by five separate elements itself and can lead to significant reductions in value for a firm. These elements include economies of scale, network effects, customer switching cost, capital requirements, and a threat of retaliation. Apple and its competitors sold over 1.9 billion mobile phones and over 2.4 billion tablets and computers (Lunden, 2015; Lunden, 2014). This requires massive economies of scale for the companies to realize s profit by purchasing large quantities of supplies and finished products from companies such as Fairchild Semiconductor, Foxconn, Intel, and 3M (Apple Inc., 2015). To be successful in the technology market a company must be able to purchase these supplies or services in bulk and receive a significant discount on account of this bulk purchase.…

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