Michael Porter 5 Forces Mark FieldingPritchard mefieding com

mefieding. com 4 Sources: www. ibef. org

April 1 st, 1976 - Founded January 3 rd, 1977 - Incorporated Headquarters -

New Entrants Threat of new entrants Bargaining power of the suppliers Supplier Existing rivalry

EXISTING RIVALRY Windows OS and media player for playing music and video ( Microsoft)

THREAT OF NEW ENTRANTS Streaming audio and video with v-cast (Verizon) On demand online

BARGAINING POWER OF SUPPLIERS Suppliers of processors and computer memory (Motorola, IBM, Intel) Strategic

BARGAINING POWER OF CUSTOMERS Customers share music using peer-to-peer networks without paying for music

THREAT FROM SUBSTITUTES Satellite radio for music (XM, Sirius) Entertainment media, media and music

RECOMMENDATIONS FOR COMPANY: Lowering the cost of products and maintaining the same quality standards

FOR OTHERS: Do not compromise on price for quality Choose the products based on

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Michael Porter, 5 Forces Mark Fielding-Pritchard mefieding. com 1

mefieding. com 2

mefieding. com 3

mefieding. com 4 Sources: www. ibef. org

April 1 st, 1976 - Founded January 3 rd, 1977 - Incorporated Headquarters - Cupertino, California Co-founders - Steve Jobs, Steve Wojniak CEO - Steve jobs 5 FORCES ANALYSIS ABOUT COMPANY Industry - Computer software, computer hardware, consumer electronics. Revenue - US$ 19. 3 Billion mefieding. com 5 Sources: Mc Kinsey report

New Entrants Threat of new entrants Bargaining power of the suppliers Supplier Existing rivalry in the industry Customer Bargaining power of buyers Substitute products & services mefieding. com Substitutes 6

EXISTING RIVALRY Windows OS and media player for playing music and video ( Microsoft) Competition to Mac OS X (Linux) Alternate sources of computer hardware (Dell, HP, Lenovo) Small stylish MP 3 players (Creative, Samsung, Sony) Online music stores similar to itunes stores (Napster) mefieding. com 7

THREAT OF NEW ENTRANTS Streaming audio and video with v-cast (Verizon) On demand online services (similar to i-tunes) New entrants with disruptive technology (The “next google”) mefieding. com 8

BARGAINING POWER OF SUPPLIERS Suppliers of processors and computer memory (Motorola, IBM, Intel) Strategic alliance/supplier of Mac (Microsoft) Supplier of tv and movies (Disney, ABC, Fox, Sony) Sources of music (BMG, Sony, Warner, Universal) mefieding. com 9

BARGAINING POWER OF CUSTOMERS Customers share music using peer-to-peer networks without paying for music (Ares, Limewire) Retailers may pressure for lower prices or better terms (Distributors) Consumers/Businesses may reduce spending on computers if they fear economic downturns (Consumer Attitudes & Behaviors) Consumer Refresh Cycles mefieding. com 10

THREAT FROM SUBSTITUTES Satellite radio for music (XM, Sirius) Entertainment media, media and music (XBOX, PS 2) Alternative means to acquire music (Music CDs, DVDs) Alternative sources for videos (Cable, Broadcast, Theatres) mefieding. com 11

RECOMMENDATIONS FOR COMPANY: Lowering the cost of products and maintaining the same quality standards Can form joint – ventures Knowledge Management More number of retail stores for easy access Continuous innovation to expand mefieding. com 12

FOR OTHERS: Do not compromise on price for quality Choose the products based on individual needs Be unique and different mefieding. com 13 5 FORCES ANALYSIS RECOMMENDATIONS