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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Nations must optimize the use of their resources in Downloaded by University of Dubai At 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.

To copy t his document: There is no labour unrest in the kingdom. Established inApple has been through low times. The kingdom is determined to adopt a wise and rational financial policy. Click here to sign up.

This is the key aspect of Porter’s model. 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.

Saudi exports account for 24 percent of its GDP, most of it coming from oil. A home market that demands quality from its domestic manufacturers creates an atmosphere of expectation for high quality exports to the rest of the world.

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

Nevertheless, national competitive analyses and a systems afthoming will account for what is best for the country being considered. Telecommunication liberalization may bring many opportunities for industrial expansion into these services, as well as increased efficiency of Downloaded by University of Dubai At More and more companies should go for mergers so as to reduce the threat from the giant transnational fivve.


Enter the email address you signed up with and we’ll email you a reset link. Analysis of the competitive situation of Saudi Arabia Porter’s model can be used as a conceptual moodel for developing strategies for Saudi Arabia. At one level we could argue that the strength of the US economy now depends as much on social factors as on questions of resource, competition and infrastructure. Establishing a business to compete against firms like Apple requires high capitalization.

This condition makes customers weak at the individual level. An inteenet source that was once wasted has been transformed into the backbone of Saudi Arabia’s vast and growing industrial sector. Copyright by Panmore Institute – All rights reserved. A very important consideration will be the state of the macro-economy. Demand determinant He further noted that the demand determinant promotes clustering of a nation’s competitive industries.

Fathoming Porter’s five forces model in the internet era

For example, people can easily use digital cameras instead of the iPhone to take pictures. Powerful economic sector In fact, the chemical sector is Saudi Arabia’s most powerful economic sector after the oil sector. The kingdom should expedite the program of privatization, encouraging wholly owned foreign investment, and restructure its company laws. 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 company manages a port f olio of more t han j ournals and over 2, books and book series volumes, as well as providing an ext ensive range of online product s and addit ional cust omer resources and services.

Many customers would rather use Apple products because of their advanced features. The economic success of Saudi Arabia is built in part on its comparative advantages and on overcoming its disadvantages. 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. The economic integration of the GCC member states may create opportunities for Saudi industries to expand.

The major problem faced by Saudi banks is that there is no secondary market where they can resell these instruments to raise cash. 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.

This abundant energy resource can be made available to develop domestic enterprise, to attract international investors and to diversify the Saudi economic base.

Without competitive domestic markets, international advantages are hard to realise. The inflation rate has been low, by both regional and international standards.

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