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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Without competitive domestic markets, international advantages are hard to realise. These determinants are factor conditions, demand conditions, the presence and absence of supporting industries, and the firm’s strategy and nature of rivalry effects. Based on this Five Forces analysis, Apple continues to address competition and the bargaining power of buyers, which are among the most significant external factors impacting the firm.

To cite this document: Saudi Arabia’s competitive advantages The competitive advantages of Saudi Arabia, like those of other nations, developed over a long time.

While some industry remains of an Downloaded by University of Dubai At While various regions of the world do provide opportunities, they also pose threats to Saudi Arabia. Samsung also used to be a new entrant. 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.

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

The kingdom has already accelerated the privatization drive in various key sectors. The average rate of inflation has been less than 1 percent over the last decade. Some aspects of port services as well as the postal system are already under private management.

An energy source that was once wasted has been transformed into the backbone of Saudi Arabia’s vast and growing industrial sector. The stock market is still undeveloped; many new issues are waiting to come to the market. Established inApple has been through low times.

Fathoming Porter’s Five Forces Model in the Internet Era

The Saudi banking system is one of the strongest in the world. While strategies based on the factors shown in Porter’s model are important, it is the combination of the strengths and opportunities and the total socioeconomic system that has ultimately contributed to Saudi Arabia’s success.


Indeed, the importance of domestic competition underlines the reasons for the failure of many nations’ industrial policies and strategies. Information technology and its implications for internal auditing. The kingdom’s proven gas reserves stood at trillion cubic feet inthe fifth largest in the world. Such aggressiveness is observable in rapid innovation, aggressive advertising, and imitation. The Saudi oil export-driven economy relies on gaining and maintaining market shares in many foreign markets.

Saudi Arabia is dedicated to the concept of free trade based on competition.

Having said all this, however, we must recognise that Saudi Arabia is a lucky country. These examples show that there are large companies that have potential to directly compete against Apple.

Lagging industries Shortcomings in Saudi business attitudes and capabilities interbet also resulted in the lagging of industries such as steel and consumer electronics.

Modep a business to compete against firms like Apple requires high capitalization. In the past 25 years, the kingdom allocated approximately 1. The money from trading in oil has provided the kingdom with the wherewithal to invest in industrial plant, to attract skilled people to work in them and to develop a modern infrastructure. The government’s subsequent success in bringing the cost of living under control was achieved not only through stricter control of the money supply, but also through a policy of subsidising the prices of many commodities and services.

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

They can also use landline telephones to make calls. Rra population The population has been increasing by an estimated 3. Saudi Arabia is already at a disadvantage due to its high social costs. The firm effectively addresses the five forces in its external environment, although much of its effort is to strengthen its position against competitors and to keep attracting customers to Apple products.

Porter’s factor determinants of national advantage relate closely to a nation’s strengths in industrial production and, consequently, to its leading industries.

In this article, the conceptual framework of Porter’s model will be used to analyze industries and to identify the competitive advantage of Saudi Arabia. Google has already done so through products like Nexus smartphones. The budget introduces higher charges for public services for the first time in recognition of forrces importance of reducing the huge budget deficit. Saudi Arabia is now considering restructuring more seriously. A weakness also exists in certain technological areas like electronics and computing, which exposed these industries to foreign competition.


To participate successfully in the fast-approaching global economic integration, Saudi Arabia will need to control its budget deficit. Telecommunication liberalization may bring many opportunities for industrial expansion into these services, as well as increased efficiency of Downloaded by University of Dubai At The four factors Downloaded by Ea of Dubai At Some business people believed that prosperity had come to an end.

So what are the reasons for Saudi Arabia’s prosperity despite such shortcomings?

Fathoming Porter’s five forces model in the internet era

Conclusion In this paper, the methodology of Porter’s model was demonstrated by using Saudi Arabia as an example. 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. Help Center Find new research papers in: There is no labour unrest in the kingdom.

Substitutes to Apple products are readily available in the market. The paper analyzes the competitive advantages of Saudi Arabia with Porter’s model. Although the huge budget deficit aggravated by the costs of the Gulf War has been running at unsustainable levels, the economic shock after the Gulf War may have been the best thing that happened to Saudi Arabia.

The economic integration of the GCC member states may create opportunities for Saudi industries to expand. Managerial Auditing Journal Porter’s model can be applied quite effectively to the UK, France or Switzerland. The following economic trends are also apparent in Saudi industries:

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