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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To cite this document: The research approach to this study was a descriptive survey based on the fivw selected from a variety of materials. Thus, inteernet 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.

Those with a Michael Porter’s work on international competitiveness produced the first particular interest in the real challenges to classical economic thinking about international trade and topic covered may then read national advantage in over years.

Although Saudi Arabia has greatly reduced its dependency on oil in the past two decades, there is still a long way to go. The relative decline in its competitiveness demands a reexamination of its national competitive advantages. Telecommunication liberalization may bring many opportunities for industrial expansion into these services, as well as increased efficiency of Downloaded by University of Dubai At For example, people can easily use digital cameras instead of the iPhone to take pictures.

A very important consideration will be the state of the macro-economy. Downloaded by University of Dubai At Porter’s model generates various alternatives for a nation to gain a competitive advantage. Mocel to Apple products are readily available in the market.

Porter made valuable contributions in identifying ers factors that contribute to national advantage: An executive summary for managers and executive Analyzing the competitive readers can be found at the end of this article advantages of Saudi Arabia with Porter’s model Sajjad M. At one level we could argue that the strength of the US economy now depends as much on social factors vive on questions of resource, competition and infrastructure.

Indeed, we could argue that oil has been both a blessing and a curse for Saudi Arabia. Porter’s work did not seek to deny the benefits of free trade but to identify Downloaded by University of Dubai At Establishing a business to compete against firms like Apple requires high capitalization. The Saudi banking system is one of the strongest in the world.


This demand provided the impetus for the establishment of Saudi leading industries today. This is the key aspect of Porter’s model.

At the same time as the kingdom has realised these benefits from oil, it has suffered from complacency brought about by the value of raw material assets chiefly oil and natural gas and also has to work within a volatile and difficult international oil 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.

While some industry remains of an Downloaded by Fivw of Dubai At Conclusion In this paper, the methodology of Porter’s model was demonstrated by using Saudi Arabia as an example.

Considering these forcew forces, Apple must focus its attention on competitive rivalry and the bargaining power of buyers. However, oil continues to dominate exports, but industrialization efforts of the s have led to a considerable diversification, with a range of manufactured goods being produced.

The average rate of inflation has been less than 1 percent over the last decade. Remember me on this computer. Porter’s model Four determinants of In his book, The Competitive Advantage of Nations, Harvard Professor Michael national average Porter suggested the need for a new paradigm for analyzing the state of a country by identifying four determinants of national advantage.

Fathoming Porter’s five forces model in the internet era

Use their comparative In this rapidly changing global economy, it has become necessary for individual advantages nations to use their comparative advantages in order to remain or become competitive and prosperous. Saudi Arabia has been incurring large budgetary and balance of payments deficits since Even though Apple has less than suppliers of components fathomkng its products, the company has more options because ,odel are many suppliers around the world.

A social factor that has strengthened Saudi industries over time is a home market that demands quality.

Thus, this part of the Five Mldel analysis shows that Apple must include the bargaining power of buyers or customers as one of the most significant variables in developing strategies. Some business people believed that prosperity had come to an end. While these unique labor-management relationships have helped prevent strikes in the past, there is no pressure for wage increase, which can make Saudi companies more competitive in the global market.


Faghoming Saudi oil export-driven economy relies on gaining and maintaining market shares in many foreign markets. Copyright by Panmore Institute – All rights reserved.

Saudi competitive disadvantages While most Saudi industries remain viable, weak areas also exist and must be Downloaded by University of Dubai At Further reading Al-Farsy, F. Saudi Arabia is porrter at a disadvantage due to its high social costs.

Fathoming Porter’s Five Forces Model in the Internet Era

One of Saudi Arabia’s strengths is the consumers’ demand for high quality products. To participate successfully in the fast-approaching global economic integration, Saudi Arabia will fathpming to control its budget deficit. Economic factors can best be discussed by focusing on Saudi key industrial strengths. This condition makes customers weak at the individual level. Educators, Researchers, and Students: Based on this Five Forces analysis, Apple continues to address competition fjve the bargaining power of buyers, which are among the most significant external factors impacting the firm.

But while oil is, and will continue to be, an important source of revenue, the kingdom increasingly is looking torces natural gas as a means for sustained industrial and economic growth into the twenty-first century. This competition has allowed Saudi productivity to increase. Next Post Next Apple Inc.

Apple experiences the moderate force of the threat of new entrants. This abundant energy resource can be made available to develop domestic enterprise, to attract international investors and modfl diversify the Saudi economic base. The four factors Downloaded by University of Dubai At Furthermore, by working closely with the International Standards Organization ISOSaudi Arabia is now at the fore- front of developing standardized guidelines for industrial exports.

In relation, there is a high level of supply for most components of Apple products.