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Public Domain Apple has achieved success as one of the most valuable companies in the world. This Five Forces analysis gives insights about the external factors influencing the firm.
Established inApple has been through low times. However, under the leadership of Steve Jobs, the company has succeeded to become an industry leader. Based on this Five Forces analysis, Apple continues to address competition and the bargaining power of buyers, which are among the most significant external factors impacting the firm.
Also, this Five Forces analysis indicates that Apple must focus its efforts on these two external factors to keep its leadership in the industry.
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|A brand extension mistake by Harley Davidson||Beginning[ edit ] Inyear-old William S. Harley drew up plans for a small engine with a displacement of 7.|
Competitive rivalry or competition strong force Bargaining power of buyers or customers strong force Bargaining power of suppliers weak force Threat of substitutes or substitution weak force Threat of new entrants or new entry moderate force Considering these five forces, Apple must focus its attention on competitive rivalry and the bargaining power of buyers.
The firm effectively addresses the five forces in its external environment, although much of its effort is to strengthen its position against competitors and to keep attracting customers to Apple products. Competitive Rivalry or Competition with Apple Strong Force Apple faces the strong force of competitive rivalry or competition.
High aggressiveness of firms strong force Low switching cost strong force Companies like BlackBerry, Samsung, LG, and others aggressively compete with Apple. Such aggressiveness is observable in rapid innovation, aggressive advertising, and imitation. On the other hand, switching cost is low, which means that it is easy for customers to switch from Apple to other brands, thereby making competition even tougher.
Low switching cost strong force Small size of individual buyers weak force It is easy for customers to change brands, thereby making them powerful in compelling companies like Apple to ensure customer satisfaction.
This condition makes customers weak at the individual level. However, because it is easy to shift from Apple to other brands, buyers still exert a strong force. Thus, this part of the Five Forces analysis shows that Apple must include the bargaining power of buyers or customers as one of the most significant variables in developing strategies.
High number of suppliers weak force High overall supply weak force Even though Apple has less than suppliers of components for its products, the company has more options because there are many suppliers around the world.
This condition makes individual suppliers weak in imposing their demands on firms like Apple. In relation, there is a high level of supply for most components of Apple products. Thus, this part of the Five Forces analysis shows that Apple does not need to prioritize the bargaining power of suppliers in developing strategies for innovation and industry leadership.
High availability of substitutes moderate force Low performance of substitutes weak force Substitutes to Apple products are readily available in the market. For example, people can easily use digital cameras instead of the iPhone to take pictures. They can also use landline telephones to make calls.
However, these substitutes have low performance because they have limited features. Many customers would rather use Apple products because of their advanced features. This part of the Five Forces analysis shows that Apple does not need to prioritize the threat of substitution in business processes like marketing and product design and development.Download management case studies (PDF files) on various companies and management subjects.
Also read business articles, management tips and jargon. About Harley Davidson Harley Davidson motorcycles date back to , when Harley and Davidson families in a wooden shed in the Davidson backyard built motorcycles in evenings and weekends. They were helped by Ole Evinrude, who became a well known manufacturer of outboard motors.
In the s, Harley Davidson introduced a perfume to capitalize on the heritage brand. This was a mistake, as even the loyal H-D customers did not like it. H-D’s brand extension was a failure. The Girl Friend and I are avid Harley riders.
For us, it is more than just a weekend hobby. Our holidays are mostly road trips, loading up the bikes and heading away for a week or two. The majority of our social life includes fellow Harley enthusiasts.
From Norway, Sweden and Finland in the north, [ ]. Executive Summary Harley-Davidson's management understood that there was much that the company could do to enhance.
internal operating efficiency; one of those areas was in supply management across all of the company's production sites.4/4(4). Harley-Davidson Case Analysis 1. 1 Harley-Davidson Motor Company: An Industry and Company Analysis William Duncan Todd Bailey.