The model of “Five Forces” was developed and made by Michael Porter in 1980s which was impacted on global business strategy formulation. Its use for analysis of competitive strategy and it can analyze customer’s competitive environment effectively. The five forces are the bargaining power of suppliers and buyers, threat of new entrants, substitutes and rivalry. These five differentiations are affecting the profit from the industry and also the potential change of a company.
Such as to ensure a company have a good relationship with their suppliers or avoid new entrants to decrease their profits and all. Everything has its good and bad, it depends on how the company manipulates the 5 forces for the best benefit. I have some comment for “Five Force”. First, It can’t tell you or teach you how to reach the right position. As an example, Apple is extremely competitive in field of computer and mobile phone and enjoyed approximately 6 years of excess profits.
They have many buyers and competitors and suppliers weak, but they are not to achieve this position for combat competitors or more, they achieve this position is because they want to create a product that people need and make the products that people want. If Apple do not know this advantage and they only know how to combat their competitors only, it’s meaningless. Also, the “Five Force” show to us that to protect our product, when you reached that level, you need to protect it. That’s why Apple wants to combat with their competitors such as Samsung, Android and etc.
The Business plan on Apple iphone analysis
... of new entrants and substitute products, bargaining power of suppliers and customers, and segment rivalry. These forces analyze micro environment. For macro ... for the iPhone. But competitors are pushing hard into the smartphone space. Samsung has already outpaced Apple in global shipments thanks ... believed to be a key to future growth and profits. The interest is understandable. Today more than 1. 3 ...
They need to “keep” their users through iCloud, this is the way to sustain their position. But all these aren’t involved in all because Apple has to develop and made a new iPhone or iPad in twice a year. If they did this their position will be raise up continuously and then protect their position. Thus, it have to developed or created then protect. In this technological era, the network is updating constantly. It shows that the analysis of “Five Force” aren’t that important because the products changed always, it seem like to develop and made are importance than to protect.
Of course, it doesn’t means that the “Five Force” is useless, just like the example of Apple, when you reached that level, the “Five Force” can help you to think that how to maintain your position and give more time to the develop department to develop the new product to replace the old product. Even if we thorough study the “Five Force”, if there is no any specific way to implement the next, it was of no avail because Porter’s five force basically is focused on how to maintain and increase profit, it’s also the “core” of his theory.
Porter doesn’t advocate combat competitors as the purpose, he just want the enterprises to control the profit which is consistent with the need of traditional industries. For the internet, the companies must strive to the top three positions whether profit or not. As long as there is a clear industry positioning for users. However, still want to thank Porter as he proposed guidelines for the corporate strategy.
