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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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All these can be measured with some degree of confidence for developed economies. As the world leader in proven reserves as well as in production and exports, Saudi Arabia relies heavily on oil. Evaluating the security controls of CAIS in developing countries. Porter mentions that an industry can become competitive due to the proximity fathomiing the supportive industry around the cities.

Another Saudi weakness is the lack of skills and expertise in the new sciences e. Useful framework Although Porter’s model provides a vorces framework for analyzing the environment, especially the economic one, and this article focused on the practical application of Porter’s model on Saudi Arabia, other countries may also benefit from generating strategies for maintaining or gaining competitive advantages in the global market.

Modeo for Saudi Arabia A set of strategies should In light of the competitive advantage and disadvantage of Saudi Arabia, a set be considered of strategies should be considered.

Although the government strongly supports the free market economy based on competition, Saudi Arabia is yet to succeed in global competition, but the relative decline in its competitiveness demands a reexamination of its national competitive advantages. Apple has achieved success as one of the most valuable companies in the world. To cite this document: Some aspects of port services as well as the postal system are already under private management.


The size of the Saudi market is also attractive to investors since it is the largest market for goods and services in the Arab world.

Fathoming Porter’s Five Forces Model in the Internet Era

fathojing It is this shift from public sector control of the economy to private sector leadership that must take place if the kingdom is to achieve its aim of a diverse, competitive economy.

Any application of the model needs the addition of a qualitative assessment of the cultural, social and educational factors that contribute to economic success or failure.

A very important consideration will be the state of the macro-economy. Google has already done so through products like Nexus smartphones. Also, this Five Forces analysis indicates that Apple must focus its efforts on these two external factors to keep its leadership in the industry.

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

Another advantage of Saudi Arabia lies in the distinct labor-management relations. However, oil continues to dominate exports, but industrialization efforts of the s have led fathomjng a considerable diversification, with a range of manufactured goods being produced.

Economic factors can best be discussed by focusing on Saudi key industrial strengths. To participate successfully in the fast-approaching global economic integration, Saudi Arabia will need to control its budget deficit.

The country is also beset by huge financial requirements for its its high social costs. Moreover, Saudi industrial strengths in gas, chemicals, machinery, and banking are important contributing factors to the nation’s success. See our Privacy Policy page to find out more about cookies modell to switch them off.

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

Furthermore, Saudi Arabia has recognised the lack of stability within the Middle East and has invested very heavily in sophisticated military technology. Help Center Find new research papers in: An energy source that was once wasted has been transformed into the backbone of Saudi Arabia’s vast and growing industrial sector.


One important factor that makes Saudi companies less competitive in the world market is the complacency of businesses and their slow response to the changing environment. There are no personal income taxes; there are ten-year tax holidays for manufacturing projects; raw materials and components can be imported duty-free and the protection of private ownership is established.

While various regions of the world do provide opportunities, they also pose threats to Saudi Arabia. The facts have been taken from secondary sources and documentations for reference purposes. On the other hand, switching cost is low, which means that it is internwt for customers to switch from Apple to other brands, thereby making competition even tougher.

Fathoming Porter’s five forces model in the internet era

However, under the leadership of Steve Jobs, the company has succeeded to become an industry leader. The long-term objective of the Saudi government’s industrial policy must be to diversify the kingdom’s economic base and to reduce its dependence on the export of crude oil. Saudi Interney is now considering restructuring more seriously.

However, there are large firms with the financial capacity to enter the market and impact Apple. These factors make new entrants weak. Saudi commitment to capital investments in machinery and the low frces barriers within that sector helped create Saudi’s powerful machinery industry. Demand determinant He further noted that the demand determinant promotes clustering of a nation’s competitive industries.