P5- describe the competitive forces on two selected
contrasting business organization to develop or update their
use of e-business.
For P5 the two company’s I have chosen are Apple and
Samsung. I will be giving a short history on both Apple and
Tesco.
Introduction
It all started back in 1976, when college drop-outs Steve Jobs
and Stephen Wozniak, along with their friend Ronald Wayne
established a company named Apple Computer. The association
between Jobs and Wozniak, in particular, dates back to 1971,
when they first met at Hewlett-Packard - where Wozniak worked -
through a mutual friend. Both of them started a business in 1972
that saw them selling a device called “blue box” which allowed
users to illegally make free long-distance calls on AT&T’s
network, and that too without getting traced. In year 1983, the first
computer to use a mouse-driven GUI (graphical user interface)
than a year later the Apple Macintosh was born and with it, the
Apple legend began to grow.
Tesco was founded in 1919 by Jack Cohen as a group of market
stalls in Hackney, London. The Tesco name first appeared in
1924, after Cohen purchased a shipment of tea from T. E. Stock
well and combined those initials with the first two letters of his
surname, and the first Tesco shop opened in 1931 in Burnt Oak,
Barnet. A competitor is a person, business, team, or organization
that competes against you or your company.
Competitive forces
Competitive forces are the factors and variables that threaten a
company's profitability and prevent its growth. They are generally
grouped into two categories: Direct forces that determine how
low the floor can go for price competition. They include Intensity
, of direct competition measured by number of competitors, degree
of product standardization, amount of excess production capacity.
Indirect forces that place a ceiling on a market’s prices and
profits. They include: The threat of indirect competition—the
availability of products that offer similar performance the
possibility of new entrants into the marketplace.
Apply competitive forces
The availability of detailed comparative information about
competing products’ features empowers buyers to shift from one
provider to another. This external factor enables buyers to exert a
strong force on Apple and other brands. 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 strategic variables in the business.
In relation, the moderate to high overall supply of inputs, such as
semiconductors, makes individual suppliers weak in imposing
their demands on firms like Apple. Also, the ratio of firm
concentration to supplier concentration further limits suppliers’
power and influence in the industry. This external factor reflects
the presence of a small number of big companies like Apple and
Samsung, in contrast to a larger number of medium-sized and big
suppliers. Thus, this part of the Five Forces analysis shows that
the bargaining power of suppliers is a minor issue in developing
Apple Inc.’s strategies for supply chain management, value chain
effectiveness, innovation, and industry leadership.
Tesco competitive forces
Analysists argue that the bargaining power of the grocery
customers is high in the UK as now-a-days they are many
competing retailers (notably Aldi, Lidl, and Pound land) vying for
the same customers, and compared to Tesco, some of them are
cheap as well. This requires Tesco to keep its prices low that
impacts on the profit margins.
contrasting business organization to develop or update their
use of e-business.
For P5 the two company’s I have chosen are Apple and
Samsung. I will be giving a short history on both Apple and
Tesco.
Introduction
It all started back in 1976, when college drop-outs Steve Jobs
and Stephen Wozniak, along with their friend Ronald Wayne
established a company named Apple Computer. The association
between Jobs and Wozniak, in particular, dates back to 1971,
when they first met at Hewlett-Packard - where Wozniak worked -
through a mutual friend. Both of them started a business in 1972
that saw them selling a device called “blue box” which allowed
users to illegally make free long-distance calls on AT&T’s
network, and that too without getting traced. In year 1983, the first
computer to use a mouse-driven GUI (graphical user interface)
than a year later the Apple Macintosh was born and with it, the
Apple legend began to grow.
Tesco was founded in 1919 by Jack Cohen as a group of market
stalls in Hackney, London. The Tesco name first appeared in
1924, after Cohen purchased a shipment of tea from T. E. Stock
well and combined those initials with the first two letters of his
surname, and the first Tesco shop opened in 1931 in Burnt Oak,
Barnet. A competitor is a person, business, team, or organization
that competes against you or your company.
Competitive forces
Competitive forces are the factors and variables that threaten a
company's profitability and prevent its growth. They are generally
grouped into two categories: Direct forces that determine how
low the floor can go for price competition. They include Intensity
, of direct competition measured by number of competitors, degree
of product standardization, amount of excess production capacity.
Indirect forces that place a ceiling on a market’s prices and
profits. They include: The threat of indirect competition—the
availability of products that offer similar performance the
possibility of new entrants into the marketplace.
Apply competitive forces
The availability of detailed comparative information about
competing products’ features empowers buyers to shift from one
provider to another. This external factor enables buyers to exert a
strong force on Apple and other brands. 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 strategic variables in the business.
In relation, the moderate to high overall supply of inputs, such as
semiconductors, makes individual suppliers weak in imposing
their demands on firms like Apple. Also, the ratio of firm
concentration to supplier concentration further limits suppliers’
power and influence in the industry. This external factor reflects
the presence of a small number of big companies like Apple and
Samsung, in contrast to a larger number of medium-sized and big
suppliers. Thus, this part of the Five Forces analysis shows that
the bargaining power of suppliers is a minor issue in developing
Apple Inc.’s strategies for supply chain management, value chain
effectiveness, innovation, and industry leadership.
Tesco competitive forces
Analysists argue that the bargaining power of the grocery
customers is high in the UK as now-a-days they are many
competing retailers (notably Aldi, Lidl, and Pound land) vying for
the same customers, and compared to Tesco, some of them are
cheap as well. This requires Tesco to keep its prices low that
impacts on the profit margins.
