According to Porter the five forces framework5 helps identify the attractiveness of an industry in terms of five competitive forces: the threat of entry, the threat of substitutes, the power of buyers, the power of suppliers and the extent of rivalry between competitors. Although initially developed with businesses in mind, the five forces framework is relevant to most organizations. It can provide a useful starting point for strategic analysis even where profit criteria may not apply. (Johnson, 2015)
In the Harvard review, Porter (2008) he further emphasizes that the point of industry analysis is not to declare the industry attractive or unattractive but to understand the extent of competition and how it makes the profit. Though in actual fact the attractiveness of the industry is defined by how profitable the organization that are operating in that market are even to further understand the profit potential of that industry.
In the case of apple the five competitive forces are as follows: