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The bargaining power of customers
5. The bargaining power of suppliers
These are the five forces that determine the competitive intensity and therefore attractiveness of a market.
The threat of substitute products
Lev Grossman once commented that, "Apple is essentially operating its own closed miniature techno-economy." In other words Apple do everything for themselves, they produce their own hardware, software, operating systems and peripherals such as consumer electronics. This made it very difficult for competitors and new entrants to the market alike, to copy their ideas. There were many attempts to clone the Apple concept but none were successful, while other companies such as IBM fell victim to this...
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