Five Forces of Competition Model - Coursework Example

Five Forces of Competition Model I selected Apple Inc. for the e-activity. There is an infinite number ofelectronic manufactures in the computer hardware & software; consumer electronics and digital distribution industry in the world, which has brought about stiff competition because of the threat of availability of substitutes in the industry. Thus, Apple Inc. faces the threat of competition/rivalry from other big companies like Microsoft and Samsung for its hardware products like the Mac computers, iPhone smartphone, iPad and iPod; Google, Mozilla etc.

for online services like iCloud, App Store etc.; Microsoft for consumer software like iOS, OS X etc. However, because of the quality of products coupled with a large portfolio of product brands, Apple has been able to survive the competition. Thus, because of the competition, Apple Inc.’s position in the industry cannot be challenged due to threat of entry of a new firm given the current trends of acquisitions taking place in the industry (Motorola acquisition by Google) is anything to go by implying new firms with same old or new technology will have to be acquired to survive competition from the already established companies.

Finally, the strong bargaining power of buyers and suppliers is proving a challenge to Apple because the company cannot raise prices for its products due to availability of close substitutes (Michael, 2008). However, Apple has embarked on a strategy of developing differentiated high-quality products for its consumers, which seems to be giving the company a competitive edge due to customer loyalty. Ultimately, based on my analysis, I believe the industry is still young and lucrative for Apple Inc.

to continue thriving if they keep on pursuing their goals of creating high-quality and pursue the goal of goal of customized products for consumers.ReferencesMichael E.P. (2008). The Five Competitive Forces That Shape Strategy. Retrieved from http://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy/ar/1