EXTERNAL REPORT ON APPLE / TUTORIALOUTLET DOT COM EXTERNAL REPORT ON APPLE / TUTORIALOUTLET DOT COM | Page 7

There are obligations for very talented employees to make more unique products. Normally, the usual economic conditions of the world are positive so that gives the companies an advantage to increase their sales. Ultimately, the overall manufacturing climate is positive for Apple in achieving their plan of action. Porter's Five-Forces Model: Threat of new entrants: There are not any direct entry barriers. A business with a new unique idea can enter into the industry. There is an increase of technologies that are being copyrighted so that no one else EXTERNAL REPORT ON APPLE, INC. 6 can use it so this acts as an indirect entry barrier. The demand increase for technology products around the world makes it simple to provide for any specific compartment. This creates a higher cost of investing in research and development, and it also acts as an indirect barrier. Economies of scale are accessible for bigger companies in comparison to the smaller companies. Lastly, the entry barrier in this market is average. Threat of substitutes: There is an availability of close substitutes. There are more players in the market meeting