abstract = “Purpose – To investigate the impact of the internet in “traditional” market – An opinion piece based on Michael. Fathoming Porter’s five forces model in the internet era. Type: Article; Author(s): G.D. Karagiannopoulos, N. Georgopoulos, K. Nikolopoulos; Date: ; Volume . Abstract, Porter’s Five Forces model is a powerful management tool for analysing the current industry information because of the Internet.

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This part of the Five Forces analysis shows that Apple must maintain its competitive advantage through innovation and marketing to remain strong against new entrants. Useful framework Although Porter’s model provides a useful framework for analyzing the environment, especially the economic one, and this article focused on the practical application of Porter’s model on Saudi Arabia, other countries may also benefit from generating strategies for maintaining or gaining competitive advantages in the global market.

Strong anti-trust legislation Some important economic factors contributing to Saudi strengths include strong anti-trust legislation; low entry barriers to business; and development of common standards which promote exports.

The kingdom’s proven gas reserves stood at trillion cubic feet inthe fifth largest in the world.

Apple Inc. Five Forces Analysis (Porter’s Model) – Panmore Institute

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. The inflation rate has been low, by both regional and international standards.

The first part of this section discusses Saudi Arabia and its industries in light of their competitive advantages in the macro-environment. The development of a strategy, be it for a career, a company, an industry, or a nation, requires a systematic analysis of the competitive advantages and disadvantages of the respective system the nation in our discussion which, in turn, operates within a fodces environment.

This demand determinant has, in part, made the industrial makeup of Saudi Arabia unique compared with those of most of the Middle East’s industrial powers.


Saudi Arabia’s proven oil reserves are estimated at some billion barrels, with enough reserves to ensure that it will remain a major supplier of oil for at least years. Educators, Researchers, and Students: However, it is clear that the Saudi Arabian socioeconomic system cannot be easily duplicated by fores Downloaded by University of Dubai At The evolution of Saudi assets, both human and capital resources, provided the pathway to preeminence in oprter engineering, chemical production, machinery, and banking industries.

New phase of development Saudi Arabia is now entering the new fhe of development by shifting from a public sector driven economy to one in which the private sector becomes the engine for growth. In the past 25 years, the kingdom allocated approximately 1. Undoubtedly, the oil sector has helped Saudi Arabia gain and maintain its competitiveness.

The Saudi oil ths economy relies on gaining and maintaining market shares in many foreign markets. Substitutes to Apple products are readily available in the market. As the world leader in proven reserves as well as in production and exports, Saudi Arabia relies heavily on oil. The kingdom has yet to succeed in the fast-approaching global economic integration.

Apple Inc. Five Forces Analysis (Porter’s Model)

Log In Sign Up. Established inApple has been through low times. Thus, the threat of new entry is moderate. Increasing population The population has been increasing by an estimated 3.

But while oil is, and will continue to be, an important source of revenue, the kingdom increasingly is looking to natural gas as a means for sustained industrial and economic growth into the twenty-first century. Downloaded by University of Dubai At A strong banking sector Saudi Arabia’s banking sector is strong and is not susceptible to negative influences from the world financial crisis. Saudi Arabia is dedicated to the concept of free trade based on competition.

Fathoming Porter’s five forces model in the internet era – Research Portal | Lancaster University

The economic integration of the GCC member states may create opportunities for Saudi industries to expand. Help Center Find new research papers in: Thriving business The Saudi government has built an excellent infrastructure within the space atmosphere of two decades and this infrastructure has contributed poretr to the thriving business atmosphere in the country.


However, because it is easy to shift from Apple to other brands, buyers still exert a strong force. Therefore, trends in these determinants also predict to a great extent the nation’s industrial competitiveness. However, one resource that becomes harder to measure is the availability of skills, the levels of education and the cultural orientation towards trade and entrepreneurship. The research approach to this study was a descriptive survey based on the data selected from a variety of materials.

Fathoming Porter’s five forces model in the internet era

A very important consideration will be the state of the macro-economy. There will be a need to look at the stability of the government and the political system. The kingdom’s vast oil reserves, which dominates the Saudi economy, presently constitute approximately 26 percent of the world’s total. Without competitive domestic markets, international intenret are hard to realise. Jasimuddin, in talking about Saudi Arabia, argues that the socio-economic environment of the kingdom is a vital element in driving development.

They also have a commanding presence in the machinery sector. Saudi Arabia is presently providing for its modernization which, among other things, will have the most modern telecommunications and industrial infrastructure in the whole of the Middle East.

The lorter have been taken from secondary sources and documentations for reference purposes.

Some business people believed that prosperity had come to an end. Skip to main content.