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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However, under the leadership of Steve Jobs, the company has succeeded to become an industry leader. However, it is clear that the Saudi Arabian socioeconomic system cannot be easily duplicated by other Downloaded by University of Dubai At Downloaded by Fthoming of Dubai At The Saudis’ post war decision to double their armed forces and to acquire more forxes military equipment will exacerbate their long-term financial problems Kanovsky, An executive summary for managers and executive Analyzing the competitive readers can be found at the end of this article advantages of Saudi Arabia with Porter’s model Sajjad M.

Fathoming Porter’s five forces model in the internet era

However, these alternatives niternet not prescriptive. Moreover, it has access to markets in other Gulf Cooperation Council GCC and Arab countries through its participation in free-trade zones.

Many customers would rather use Apple products because of their advanced features. Establishing a business to compete against firms like Apple requires high capitalization. More and more companies should go for mergers so as to reduce the threat from the giant transnational corporations. Another Saudi weakness is the lack of skills and expertise in the new sciences fjve.

Click here to sign up. A weakness also exists in certain technological areas like electronics and computing, which exposed these industries to foreign competition. Saudi industrial uniqueness also vathoming from the plethora of medium- to large-sized companies which make up the backbone of export prowess of Saudi Arabia.

See our Privacy Policy page to find out more about cookies or to switch them off. However, these substitutes have low performance because they have limited features. It is easy for customers to change brands, thereby making them powerful in compelling companies like Apple to ensure customer inhernet. Use their comparative In this rapidly changing global economy, it has become necessary for individual fathomung nations to use their comparative advantages in order to remain or become competitive and prosperous.


Communicating corporate image into existence: A social factor that has strengthened Saudi industries over time is a home market that demands quality. As a result, public policy can focus on creating the environment for trade success and put an end to trying to second-guess business performance. 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.

Without competitive domestic markets, international advantages are hard to realise. Porter’s work did not seek to deny the benefits of free trade but to identify Downloaded by University of Dubai At Established inApple has been through low times. Porter made valuable contributions in identifying important factors that contribute fofces national advantage: Saudi exports account for 24 percent of its GDP, most of it coming from oil.

This part of the Five Forces analysis shows that Apple must maintain its competitive advantage through innovation and marketing to remain strong against new entrants.

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. We use cookies to maintain website functionality and to combat advertising fraud. 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.

To participate successfully in the fast-approaching global economic integration, Saudi Arabia will need to control its budget deficit. Another advantage of Saudi Arabia lies in the distinct labor-management relations.

An energy source that was once wasted has been transformed into the backbone of Saudi Arabia’s vast and growing industrial sector.

Fathoming Porter’s Five Forces Model in the Internet Era

Even though Apple has less than suppliers of components for its products, the company has more options because there are many suppliers around the world. Evaluating the security controls of CAIS in developing countries. There are no personal income taxes; fathomlng 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.


Nations must optimize the use of their resources in Downloaded by University of Dubai At While various regions of the world do provide opportunities, they also pose threats to Saudi Arabia. Government officials are now recognizing the problem with globalization and justifying cutting social benefits. Strategies for Saudi Arabia A set of strategies should In light of the competitive advantage and disadvantage of Potrer Arabia, a set be considered of strategies should be considered.

The kingdom’s vast oil reserves, which dominates the Saudi economy, presently constitute approximately 26 percent of the world’s total. 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.

Fathoming Porter’s five forces model in the internet era

The strategic merger by transnational companies may weaken the competitiveness of Saudi industries. They also have a commanding presence in the machinery sector. For example, people can easily fvie digital cameras instead of the iPhone to take pictures.

The development of a strategy, be it for a career, a company, an industry, or a nation, requires a systematic analysis of the competitive advantages and disadvantages of the respective system the nation in our discussion which, in turn, operates within a larger environment. The most favorable condition occurs when a nation uses its factors to take advantage of opportunities outside that nation.

Telecommunication liberalization may bring many opportunities for industrial expansion into these services, as well as increased efficiency of Downloaded by University of Dubai At There is no labour unrest in the kingdom.

These determinants are factor conditions, demand conditions, the presence and absence of supporting industries, and the firm’s strategy and nature of rivalry effects. The relative decline in its competitiveness demands a reexamination of its national competitive advantages. This is the key aspect of Porter’s model. Introduction A substantial creditor to the The kingdom of Saudi Arabia is the largest country in the Middle East and rest of the world the 12th largest in the world, measuring approximately 2.

Having said all this, however, we must recognise that Saudi Arabia is a lucky country.