Strategic Management: Apple's Challenges in the Chinese Market

The assignment analyzes the strategic challenges faced by Apple Inc. in the Chinese market. It discusses the intensified competition from local companies like Huawei, Oppo, and Xiaomi, which offer low-cost alternatives. Furthermore, the report examines the impact of trade tensions between the US and China, including tariffs and restrictions on Apple's operations. The report highlights how these external factors, along with economic slowdowns, have affected Apple's market share and overall performance in China. The study emphasizes the need for strategic adjustments to navigate the complex and evolving landscape of the Chinese market. The report also highlights the challenges related to the bans on Apple iPhone models in China, and how all these factors have contributed to the uncertainty of the growth of the venture in China.

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
Name of the student
Name of the university
Author note

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Introduction
The different strategic planning activities of the organizations support the same in
developing the propositions while examining the internal and environmental considerations. The
research will emphasize on examining the position of Apple Inc. in China and the issues that are
being faced by the venture restricting their expansion and growth.
Discussion
Apple Inc. has grown in the Chinese markets based on the enhancement of the demand
that was encountered by the venture. However, the intensified competition that is being faced by
the organization through the emergence of companies like Huawei, Oppo, Vivo and Xiaomi
which offered low cost mobiles with similar features affected the market shares of Apple
(YouTube, 2019). Apple procured 20% of its annual sales from the Chinese markets (YouTube,
2019). However, the introduction of the new companies challenged the influence of Apple in the
Chinese markets.
Currently, Apple Inc. held the 5th position in the Chinese’s markets which created a
situation of intense competition for the venture (YouTube, 2019). Moreover, the slowdown of
the Chinese economy also affected the potency of the venture in marketing their products in
China. On the other hand, the emergence of the trade tensions between US and China and the
implementation of tariffs have downsized the capacity of the organization in facilitating the
assembling operations, which they used to undertake through collaboration with Foxconn, a
Chinese organization. Bans on Apple iPhone 6,7,8 models in China also affected the potentials
of the business in continuing with the operations of the same while operating in the Chinese
markets (YouTube, 2019). The enhanced rate of competition encountered by Apple inc in
Chinese markets created uncertainty for the growth of the venture in China.

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Conclusion
Therefore, from the above assessment it might be stated that Apple Inc. faced significant
issues while operating in the Chinese markets. The strategic direction of Apple will be reliant on
the examination of the Chinese market and the manner in which the eternal factors limited the
operations of the venture in China.

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References
YouTube (2019). Apple's China Problem Goes Deeper Than the iPhone. [online] YouTube.
Available at: https://www.youtube.com/watch?v=hKfsueeSy_w [Accessed 23 Jun. 2019].