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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The relative decline in its competitiveness demands a reexamination of its national competitive advantages.

Fathoming Porter’s five forces model in the internet era

Communicating corporate image into existence: The conceptual Porter’s model will now be used for a foorces country analysis of Saudi Arabia and for the specific analysis of selected industries to illustrate the practical application of the model. A very important consideration will be the state of the macro-economy.

Increasing population The population has been increasing by an estimated 3.

Analysis of the competitive situation of Saudi Arabia Porter’s model can be used as a conceptual framework for developing strategies for Saudi Arabia. See our Privacy Policy page to find out more about cookies or to switch them off.

Porter’s work did not seek to deny the benefits of free trade but to identify Downloaded by University of Dubai At Journal of Electronic Commerce in Organizations 9: Furthermore, Saudi Arabia has recognised the lack of stability within the Middle East and has invested very heavily in sophisticated military technology.


There is only so much to present go round and therefore some nations win at the expense of others. Skip to main content. Saudi infrastructure provided outstanding support for the growth of capital intensive industrial expansion. Through the years, Saudi strengths have contributed to its current position within the Middle East and the world. The kingdom’s vast oil reserves, which dominates the Saudi economy, presently constitute approximately 26 percent of the world’s total.

This Five Forces analysis gives insights about the external factors influencing the firm. The most favorable condition occurs when a nation uses its factors to take advantage of opportunities outside that nation. Use their comparative In this tathoming 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.

Porter’s model can be applied quite effectively to the UK, France or Switzerland. integnet

Demand determinant He further noted that the demand determinant promotes clustering of a nation’s competitive industries. Manufacturers in Saudi Arabia may implement Japan’s just-in-time and total quality control methods in an attempt to minimize threats from foreign competitors.

The kingdom is still a substantial net creditor to the rest of the world and the government has almost no foreign debt. Many customers would rather use Apple products because of their advanced features.

Undoubtedly, the oil sector has helped Saudi Arabia gain and maintain its competitiveness. The average rate of inflation has been less than 1 percent over the last decade.

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. This analysis of the competitive situation of Saudi Arabia is mainly descriptive and does not necessarily result in the formulation of alternative strategies. 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.


In addition to skill, there are shortages in good secretarial skills coupled with sufficient English-speaking skills. In this rapidly changing global economy, forced has become necessary for Saudi Arabia to use its comparative advantages in order to remain competitive. At one level we could argue that the strength of the US economy now depends as much on social factors as on poeter of resource, competition and infrastructure.

Fathoming Porter’s Five Forces Model in the Internet Era

However, the relative strengths in many of these industries have started to diminish. Another Saudi weakness is the internett of skills and expertise in the new sciences e. Conclusion In this paper, the methodology of Porter’s model was demonstrated by using Saudi Arabia as an example. These examples show that there are large companies that have potential to directly compete against Apple.