Because of the dramatic increases in the laptop market IBM has seen some declines in sales yet they haven't taken as hard of a hit over the past ten years as Apple computers have. Because of IBM's high ratings in the computer production market, their competition has had a battle in itself to make up for losses in sales and production due to the current success level of IBM. (Research Insight) From our research we have found that IBM and Apple, who were once the leaders in the computer industries have taken pretty sharp cutbacks in production and prices to stay in competition with the rest of their competitors.
Conclusion
Each of these forces in Porter's Five Forces model are all connected in some way. The stronger each force is the more the industry in which the company is in is competitive. When an industry is more competitive this leads to lower prices due to price wars and ultimately lower rate of return. One of the limitations to this way of looking at industry analysis is that the Five Forces model looks at an industry as a whole instead of each individual company.
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