Porter’s Five Force Model for Apple
Apple Inc. Apple Inc. (formerly Apple Computer, Inc. ) is an American multinational corporation that designs and sells consumer electronics, computer software, and personal computers. The company’s best-known hardware products are the Macintosh line of computers, the iPod, the iPhone and the iPad. Its software includes the OS X and iOS operating system; the iTunes media browser; and the iLife and iWork creativity and production suites.
Apple is the world’s third-largest mobile phone maker after Samsung and Nokia.Established on April 1, 1976 in Cupertino, California, and incorporated January 3, 1977, the company was named Apple Computer, Inc. for its first 30 years. The word “Computer” was removed from its name on January 9, 2007, as its traditional focus on personal computers shifted towards consumer electronics. Fortune magazine named Apple the most admired company in the United States in 2008, and in the world from 2008 to 2012. However, the company has received widespread criticism for its contractors labour practices, and for Apple’s own environmental and business practices.As of July 2011, Apple has 364 retail stores in thirteen countries as well as the online Apple Store and iTunes Store.
Porter’s Five Force Model for Apple Essay Example
It is the largest publicly-traded corporation in the world by market capitalization, with an estimated value of US$626 billion as of September 2012. The Apple market cap is larger than that of Google and Microsoft combined. As of September 24, 2011, the company had 60,400 permanent full-time employees and 2,900 temporary full-time employees worldwide; its worldwide annual revenue in 2010 totalled $65 billion, growing to $108 billion in 2011.Porter’s Five Force Model Porter’s five forces analysis is a framework for industry analysis and business strategy development formed by Michael E. Porter of Harvard Business School in 1979. It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability.
An “unattractive” industry is one in which the combination of these five forces acts to drive down overall profitability.A very unattractive industry would be one approaching “pure competition”, in which available profits for all firms are driven to normal profit. Three of Porter’s five forces refer to competition from external sources. The remainder are internal threats. | PC| MP3 player/online music services| Mobile Products