Table of contentsThreat of substitutesThreat of new entrantsBargaining power of suppliersBargaining power of buyersThe level of completion posed by companies that compete directly with Apple is very high. Leading industries like Samsung, HP, Google Inc., Amazon, and Apple are competing fiercely due to their highly innovative products with almost similar features. Samsung and Apple, for example, have similar capabilities because both companies can flex their financial muscle and undertake many investments at the same time, making competition between the largest companies very strong. All leading companies in the technology sector devote a good percentage of their revenue to research and development, allowing them to continually engage in the production of high-quality products and, thus, remain competitive. Consumer switching cost is another key factor that makes competition very strong in the industry. The cost of switching from Apple's online stores to Amazon's Kindle is very low, so consumers can switch from one product to another without incurring any costs. Along the same lines, the diversity of products manufactured by Apple as well as other companies in the industry makes it easy for the company to lose market for one of its products and gain market for the other , depending on the level of competition at any given time. in time. Competition from small, innovative regionally based companies also increases the level of competition in the sector. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay Threat of SubstitutesAs discussed in the section on competitive rivalry, there is strong competition among the leading companies in the industry. The threat posed by substitute products is therefore considerably high due to the industry's products as well as the industry's high innovation. The industry's products are highly substitutable due to the multiplicity of industry players. The industry is experiencing one of the biggest threats from new entrants. The threat posed by new entrants seeking to enter the electronics and technology industry is very low. Apple is one of the companies that has established itself as the leader in technology and electronic products. The company benefits from significant economies of scale: Apple is the largest company by market capitalization, having raised more than $750 billion in the capital market. The large pool of resources allows the company to undertake costly investments or expand into new markets. Likewise, the high cost of starting an electronics or technology company in the United States as well as other major international markets poses a barrier that prevents other companies, or even new companies, from entering the market . Establishing a brand in the technology sector is a laborious process, both costly and time-consuming. It is for this reason that some companies are prevented from entering the market, for fear of not being able to compete with the best companies in the sector, such as Apple and Samsung. . High cost of production in the industry is another reason that prevents potential companies from entering the industry. Conveniently, Apple felt the pressure of high production costs in the US market and had to outsource its operations to China in order to remain competitive. Companies looking to enter.