Strategic Management Plan for Apple Inc. using Porter's Five Forces

This report provides a strategic management plan for Apple, a leading technology company, using Porter's Five Forces framework. It analyzes the competitive rivalry Apple faces from international mobile manufacturers, the high power of consumers due to numerous alternatives, and the low supplier power attributed to a high firm concentration ratio. The threat of substitute products is deemed low due to Apple's advanced technology. The report concludes that Apple faces significant competition, enhancing consumer power, while benefiting from low supplier power and minimal threat from substitutes. High investment requirements also pose a barrier to new entrants in the industry. Access more solved assignments and study resources on Desklib.

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Strategic management plan

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Table of Contents
 Introduction
 Porter’s five forces analysis
 Conclusion

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Introduction
 Developing a suitable business strategy for deciding the future direction of the
company involves usage of various frameworks and models.
 These models are used to understand the internal and external environment of the
company and determine the most profitable strategy for future success of the
company.
 Apple is the selected organization for this report. It is a American technology
company and is considered one of the main players in the global technology
industry.

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Porters Fiver forces analysis of Apple
 Competitive Rivalry; Apple faces high
competition from International mobile
manufacturing companies.
 Chinese smartphone manufactures Huawie,
Xiaomi and OnePlus offer consumers mobiles
at lower price and are attracting middle income
consumers from Ape.

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 Buyers Power: This element of the Porter's five
forces framework looks at the ability of consumers
to influence price of the products.
 The power of consumers in case of Apple is high.
The reason for this is that consumers have many
options to purchase their smartphone products.

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 Suppliers Power: The ability of
suppliers to influence prices is low.
 High ratio of firm concentration to
supplier concentration, moderate
number of suppliers and medium to
high overall supply restricts
suppliers power in mobile
manufacturing sector.

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 Threat of Substitute Products:
Threat of substitutes is low in
case of Apple.
 This is because Apple products
offer advanced technology in
comparison to cheaper
substitutes.

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Conclusion
 From the above report it is concluded that Apple faces high
competition which increases power of consumers. Low supplier power
is faced by apple due to large number of suppliers in the country.
Apart from this, there is low threat of substitutes for apple as the
company utilizes advanced technology in their products. The power of
new entrants is low as high investment is needed to enter the industry.

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References
 O'Hara and et. al., 2017. Tuberculosis testing for healthcare workers in
South Africa: A health service analysis using Porter's Five Forces
Framework. International Journal of Healthcare Management, 10(1).
pp.49-56.