American multinational technology corporations

Apple Inc. is an American multinational technology corporation headquartered in Cupertino, California. It is one of the world’s most valuable companies and the most prominent five information technology companies in the U.S. Other well-known companies in the information technology industry are Amazon, Facebook, Google, and Microsoft. Porters Five Forces Analysis enables businesses to determine their competitiveness in the market, attractiveness, and other elements that affect profitability. The five forces are the threat of new entrants, competitive rivalry, the threat of substitutes, suppliers’ bargaining power, and buyers’ bargaining power. This paper seeks to analyze Apple’s threat of new entrants and the bargaining power of buyers, to understand its position and how it compares to the competing rivals.The threat of New EntrantsAccording to Porters Five Forces Analysis, the threat of new entrants shows the effects and probability of new businesses entering the market. It is the risk a new company poses to existing companies in an industry. It is one of the forces that define the competitive nature of the business industry and helps show the attractiveness of an enterprise. Notably, the threat of new entrants that Apple encounters is low to moderate.a. Reasons for the low threat of new entrantsIn the case of Apple Inc., the threat of low entrants is relatively low because of various. The first reason is the high cost of establishing an information technology company. Suppose a new company wants to indulge in personal computing or smartphone manufacturing. In that case, it must have enormous financial backing since it will spend a lot of capital on R