Use Porter’s five competitive forces model to analyze how Apple has attained a competitive advantage in the tablet market.

managing_and_using_information_system.pdfPOST 1: Information resources has been going through drastic changes from 1960, importance of information has improved from being insufficient to excessive state.

Michael Porter suggested five competitive forces which are

The first force is to make sure new entrant have barriers; it is difficult for new entrant to get into the market is challenging as Apple provides all the capabilities in a cost-effective manner. As being and holding the first place for website, which the firm, plays a major role by making all the measures. Buyer’s face difficulty to switch from apple products as apple uses the techniques underlying for changing costs. One important feature for Apple products is its backup option using cloud which makes customers stick to its products. Information resources lowers the substitution threat for Apple and plays an important role, as the they pay maximum attention to the price-to-performance ratio, changing costs. By keeping the differentiation of the product through Information Systems in a creative and strategic manner, made a run for Apple’s competitors.

All the above-mentioned forces of Porter helped Apple to maintain the top position in iPad.

POST: 2

Apple is one of the biggest competitors in electronic devices. In this post utilizing porters Five force method would like to elaborate how apple obtained such success. Porters five force methods helps us to evaluate the business strategies used in the organization. Strategy of Apple considers the factors in external environment which can impact the share in the market, profit, finance and development of the business. It considers competition as one its strong force, consumers or customers as strong force, any new competitors as moderate force, suppliers as weak force and substitutes as weak force.

Competition – Apple’s biggest competitors are Samsung, LG. competitor try to provide the same services at a low-cost apple recognize the threat and provide better services to obtain more customers by improving their products with new releases and additions.

Customers- They ensure satisfaction of the customer; an individual customer purchase is low in comparison with the yearly revenue the company obtains but the customers can shift to a different product, so apple considers this as a strong power of external factor.

New Entry- They consider a new product release as a moderate force as any organization would require high capital to compete with one of the leading companies. Nexus is one example where google introduced a new smart phone. Which provides other leading industries can be a threat So, they consider this as a moderate threat.

Suppliers – Apple has supply chain all over the world. Suppliers couldn’t demand on the firm due to its providers around the globe it minimizes the powers of supplier. So they consider it as a minor issue.

Substitution- Apple consider this also a weak force as people consider using smart phones over the traditional devices and they have limited capabilities.