Wenqi Tan Mr. Shemroske Cis January 20, 2018 Research Paper I am choosing Apple because Apple’s innovation have made Apple become one of the richest technology company in the world. Firstly, the Bargaining power of supplies, one of the five forces for competitive advantage. Because Apple is not completely matured yet, Apple has to expand their supplies nationwide. Apple also spread its products to nationwide for more profits as well as to limiting their bargaining power. Secondly, which is the Bargaining power of customer, let’s be honest, Apple is lacking on bargaining power of customers because Apple have raise it products price up to at least 50 percent of the comparison of the first generation Iphone to Iphone X. When apple first introduced the world their first generation of Iphone, customers went crazy because no one have seen such phone like it compared to the old flip phones. And the price was acceptable at the time since it was so new and Apple is the only company with the wide and touch screen phone. Each year the price of the new generation Iphone goes up. And the newest which is the Iphone X that cost over $1000, because the idea of touch screen is so common nowadays. More customers loss interest on spending more and more money on every generation Iphone. Which makes more customers to go for cheaper phone such as the samsung. But Apple still is the leading technology industry due to its brand loyalty. Thirdly, the Threat of new entrants. Since Apple is one the top company, it’s brand loyalty made it stabled in the technology industry and as well as the price on its products. Other company have to invest largely on their financial, which is one of the way Apple created a treat to other company and also all the new feature on its Iphone. Fourth, the threat of substitutes. Among all the competitor such as samsung being one of the biggest competitor. Apple is being threatened by this because sansung costs half of Iphone’s price and its product produce the similar feature as Apple products. Which let customers to buy more samsung because of it price and their smiliar features to the Iphone. And lastly, the competitive rivalry between the existing players. The level of competition between the top players in the technological industry. Including Samsung and other companies. Where the loss of one can be benefit to the other. But most likely, those competitors are the main factor to effects on Apple’s new performance and innovation.