Using analytical tools such as ‘Porter’s Five Forces’ and the ‘Structure Conduct Performance’ model, discuss the success or failure of a known company / companies
Introduction:
As is known to all, Apple Inc. (Apple) specializes in the design and production of cell phone, personal computers, music players third-party digital content and applications as well as the relevant services such as software, applications, digital content and networking solution (Apple, 2014). Apple is the world's largest mobile phone maker and the personal computers’ maker, making it the world's largest listed company. Its core business is electronic technology products. The company also is famous for its innovation in high-tech enterprises. Why so many customers choose apple products is the differentiation of products, for which apple does a phenomenal job from its competitors. One critical characteristic of product differentiation is the actual attributes of a firm’s products. It is not hard to see the reason why apple is the successful company.
This essay will focus on the usage of ‘Porter’s five forces’ and the ‘structure conduct performance’（SCP） model respectively to discuss the reasons for the success of Apple and analyze what factors in the two models is the key to its achievement. At last, this essay will give suggestion on how to continue to maintain its leading position in the field of science and technology.
Main body:
What is Porter’s Five Forces? Porter (1979) state that five forces model of is a powerful tool to diagnose the noticeable pressures in the market and rate the significant and strength. The mode reckons that the condition of the competition in a particular industry consists of competitive pressures that operate in the following five areas. These five forces are: (a) Threat of new entrants; (b) Bargaining power of buyers; (c) Bargaining power of suppliers; (d) Rivalry among existing firms; and (e) Threat of substitutes. The Figure 1 depicts the five forces competitive structure of industry.
Source: Adapted from M.E. Porter, Competitive Strategy: Techniques for Analyzing
As is known to all, Apple Inc. (Apple) specializes in the design and production of cell phone, personal computers, music players third-party digital content and applications as well as the relevant services such as software, applications, digital content and networking solution (Apple, 2014). Apple is the world's largest mobile phone maker and the personal computers’ maker, making it the world's largest listed company. Its core business is electronic technology products. The company also is famous for its innovation in high-tech enterprises. Why so many customers choose apple products is the differentiation of products, for which apple does a phenomenal job from its competitors. One critical characteristic of product differentiation is the actual attributes of a firm’s products. It is not hard to see the reason why apple is the successful company.
This essay will focus on the usage of ‘Porter’s five forces’ and the ‘structure conduct performance’（SCP） model respectively to discuss the reasons for the success of Apple and analyze what factors in the two models is the key to its achievement. At last, this essay will give suggestion on how to continue to maintain its leading position in the field of science and technology.
Main body:
What is Porter’s Five Forces? Porter (1979) state that five forces model of is a powerful tool to diagnose the noticeable pressures in the market and rate the significant and strength. The mode reckons that the condition of the competition in a particular industry consists of competitive pressures that operate in the following five areas. These five forces are: (a) Threat of new entrants; (b) Bargaining power of buyers; (c) Bargaining power of suppliers; (d) Rivalry among existing firms; and (e) Threat of substitutes. The Figure 1 depicts the five forces competitive structure of industry.
Source: Adapted from M.E. Porter, Competitive Strategy: Techniques for Analyzing