abstract = “Purpose – To investigate the impact of the internet in “traditional” market – An opinion piece based on Michael. Fathoming Porter’s five forces model in the internet era. Type: Article; Author(s): G.D. Karagiannopoulos, N. Georgopoulos, K. Nikolopoulos; Date: ; Volume . Abstract, Porter’s Five Forces model is a powerful management tool for analysing the current industry information because of the Internet.

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Trade unions are illegal in Saudi Arabia, and there is no minimum wage. Another advantage of Saudi Arabia lies in the distinct labor-management relations. The economic success of Saudi Arabia is built in part on its comparative advantages and on overcoming its disadvantages.

The conceptual Porter’s model will now be used for a broad country analysis of Saudi Arabia and for the specific analysis of selected industries to illustrate thw practical application of the model.

fatgoming The inflation rate has been low, by both regional and international standards. Saudi Arabia’s future prospects in engineering do not look too promising either. The first part of this section discusses Saudi Arabia and its industries in light of their competitive advantages in the macro-environment. It is easy for customers to change brands, thereby making them powerful in compelling companies like Apple to ensure customer satisfaction.

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Fathoming Porter’s five forces model in the internet era

For example, people can easily use digital cameras instead of the iPhone to take pictures. Help Center Find new research papers in: The following economic trends are also apparent in Saudi dathoming The relative decline in its competitiveness demands a reexamination of its national competitive advantages. Intrinsic economic factors affecting Saudi industrial productivity include unlimited natural resources e. Saudi Arabia is already at a disadvantage due to its high social costs.


Fathoming Porter’s five forces model in the internet era

Moreover, Fayhoming industrial strengths in gas, chemicals, machinery, and banking are important contributing factors to the nation’s success. Commitment to capital investment has also enabled Saudi Arabia to maintain its position in the very competitive petro-chemical industries. This Five Forces analysis gives insights about the external factors influencing the firm.

Some aspects of port services as well as the postal system are already under private management. Thus, this part of the Five Forces analysis shows that Apple must include the bargaining power of buyers or customers as one of the most significant variables in developing fzthoming.

Demand determinant He further noted that the demand determinant promotes clustering of a nation’s competitive industries. A weakness also exists in certain technological areas like electronics and computing, which exposed these industries to foreign competition.

Fathoming Porter’s Five Forces Model in the Internet Era

As a result, public policy can focus on creating the environment for trade success and put an end to trying to second-guess business performance. Porter’s factor determinants of national advantage relate closely to a nation’s strengths in industrial production and, consequently, to its leading industries.

These factors make new entrants weak. So what are the reasons for Saudi Arabia’s prosperity despite such shortcomings? The most favorable condition occurs when a nation uses its factors to take advantage of opportunities outside that nation.

Fathoming Porter’s five forces model in the internet era – Research Portal | Lancaster University

Porter’s approach will render a nation’s business activities more feasible and efficient within the international arena through the proper identification and optimal utilization of each country’s factor endowments, thereby promoting the nation’s continued global success.

At the same time as the kingdom has realised these benefits from oil, it has suffered from complacency brought about by the value of raw material assets chiefly oil and natural gas and also has to work within a volatile and difficult international oil market. There is only so much to present go round and therefore some nations win at the expense of others. The kingdom has already accelerated the privatization drive in various key sectors. Also, it is considerable costly to develop a strong brand to compete against large firms like Apple.


Managerial Auditing Journal All these can be measured with some degree of confidence for developed economies. Saudi competitive disadvantages While most Saudi industries remain viable, weak areas also exist and must be Downloaded by University of Dubai At A home market that demands quality from its domestic manufacturers creates an atmosphere of expectation for high quality exports to the rest of the world.

Even though Apple has less than suppliers of components for its products, the company has more options because there are many suppliers around the world.

The firm effectively addresses the five forces in its external environment, although much of its effort is to strengthen its position against competitors and to keep attracting customers to Apple products. More and more companies should go for mergers so as to reduce the threat from the giant transnational corporations. Jasimuddin Lecturer in the Industrial Engineering Department, King Abdulaziz University, Jeddah, Saudi Arabia Keywords Saudi Arabia, Competitive advantage, Economic conditions, Export Abstract Saudi Arabia is one of the world’s wealthiest nations per capita and, through possession fathomlng a large share of the world’s oil resources, an economic power.

Use their comparative In this rapidly changing global economy, it has become necessary for individual advantages nations to use their comparative advantages in order to remain or become competitive and prosperous.