The aims of this paper are to develop concepts on different theories of sand models to analyze the businesses’ environmental and competitive analysis and to develop a business strategy. In addition, the paper focuses on what the researcher has learned from this assignment and coursework. The paper also outlines how the researcher has contributed to the Group Discussion.
The findings of this paper have come from different sources. The researcher has studied several books journals and websites to gain knowledge and understanding of the different theories and models and their application in a real business environment. Then, the information related to the researcher’s learning and contribution to the Group Discussion has come from the researcher’s brainstorming and discussion with the group members.
Two particular theories- Porter Five Forces Model and McKinsey’s 7’S- have been applied to conduct Apple’s competitive analysis. Then, two models- Ansoff’s Growth Model and Marketing Mix (7’P) have been applied to develop a strategy for Apple Inc. The research has found that although Apple is facing some challenges in a competitive market, it has a huge opportunity to develop new products and an extended market in the international environment. Thus, the study has developed several strategies for Apple to take these opportunities.
The researcher has learned a lot from this course, where the assignment mainly has developed the researcher’s communication skills, leadership and management skills, decision making and problem-solving skills, time management skills, presentation skills, and technological skills.
Finally, through this coursework, the researcher has contributed a lot to the Group Discussion. The researcher has contributed in group information, in group works, in project implementation, in monitoring and reviewing the progress, in completing the activities, and in evaluating the performance of the projects and the lesson learned from the group activities/project.
Table of Contents
1.0 Introduction (key areas of research and sources)
2.0 Critical discussion of strategic models.
2.1 Strategic Models for the business environment and competitive situation analysis.
2.1.1Porter’s Five Forces Model
2.1.2 McKinsey 7-S Analysis.
2.2 Strategic models for business decision making.
2.2.1Product-Market Growth (Ansoff) Matrix.
2.2.2 Marketing Mix (7’P) Analysis.
3.0 Conclusions and findings related to strategic theories and models and practical implications.
4.0 What the researcher has learned from this coursework.
5.0 Researcher contribution to the Group Discussion.
1.0 Introduction (key areas of research and sources)
For conducting an effective environmental and competitive business analysis, the decision-makers must identify the challenges that come from political, economic, and technological factors, and from current and prospective competitors. In addition, the organizations should have clear ideas about the strengths, weaknesses, threats, and opportunities of the business (Johnson et al., 2012). Several tools and models are used to assess these factors. In this paper, two particular models- Porter Five Force Model and McKenney’s 7’s Model- are applied to assess the environmental and competitive issues of Apple Inc.
Organizations define effective strategic paths to improve business performance using several strategic decision-making models. In this paper, two strategic business decision models-Ansoff’s Growth Model and Marketing Mix (7’S)- are applied to develop strategic paths for Apple Inc. Then, this paper outlines the conclusions and findings that come from strategic models and their practical implications. Next, the paper discusses what the researcher has learned from this module and assignment. Finally, the report has explained how the researcher has contributed to the Group Discussion as part of this assignment.
2.0 Critical discussion of strategic models
Strategic models applied in this paper are grouped as: a) strategic models for business environment analysis and competitive situation analysis and b) strategic models for business decision making. For conducting business and competitive situation for Apple Inc, Porter Five Force Model, and McKenney’s 7’s Model are applied. For making strategic decisions for Apple Inc, Ansoff’s Growth Model and Marketing Mix (7’S) model are applied.
2.1 Strategic Models for the business environment and competitive situation analysis
2.1.1Porter’s Five Forces Model
The five Forces Model was developed by a Processor of Harvard Business School, named Michael E. Porter, in 1980. This model is applied before making any strategic decision to conduct an effective analysis of the business’s competition. This model focuses on five particular forces: a) threat of new or potential entrants; b) bargaining power of the consumer, c) bargaining power of supplier; d) rivalry among competitors; and e) threat of substitute products (Kotler et al., 2014).
The key advantages of this model are it analyzes the external business forces and provides better solutions to the company. The limitations of this model are it focuses on only five particular external issues. It does not emphasize internal business factors. Consequently, the company cannot make any effective decisions depending on this model (Kotler et al., 2014).
Porter’s Five Force’s Analysis for Apple Inc
|Rivalry among competitors||Market share rivalry in a competitive market may be from low to extreme, where the intensity means the power of one business to put pressure on other businesses in the industry.||Although Apple’s product prices are higher than competitors, it is very sensitive because of extreme intensity from rivals including Samsung, Sony, Nokia, etc.|| |
|Bargaining power of consumer||Customers have the power to influence product prices and terms of buying putting pressure on organizations to reduce prices and improve quality.||Although Apple’s consumers are happy about the product’s quality and added values and features, customers raise questions against prices and put pressure to cut the prices of the products.|| |
|Bargaining power of supplier||When there are few substitutes, Suppliers of equipment can influence the supply chain, products prices, and terms||Although Apple buys a few types of equipment suppliers, it should be more aware of suppliers’ products because it may impact brand reputations.|| |
|The threat of new or potential entrants||The new or potential competitors that are not operating now but might compete in the near future with its capability and resources.||Apple is a very reputed and established company that has achieved strong brand appeal. So, there is no probability to face new entrants.|| |
|The threat of substitutes products||Similar products may come from different manufacturers meeting customer needs and expectations.||Similar products may come from Apple’s competitors including Samsung, Sony, Nokia, Motorola, and Blackberry with reasonable price|| |
|Kotler et al. (2014)||Source: Apple Inc (2015)||Source: Reporter, Raju (2015)|
Our Recommended Resources:
2.1.2 McKinsey 7-S Analysis
McKinsey’s 7’S model is applied to analyze seven particular business internal factors which interdependent on each other. These seven factors are: business strategies, business structure, business systems, business shared values, business styles, business skills, and experiences, and workforces work in the business. Among these factors, the strategies and company shared values closed related to other factors and most important to provide sustainable competitive advantages to the businesses. When a company can gain strengths in these seven particular factors, the company is able to gain a sustainable competitive advantage. However, if the business cannot make a strong relationship among these factors, the businesses will fail to gain sustainable strategic capability ( Johnson, et al, 2012).
The key benefit of this model is that it gives a clear idea of most of the internal issues of an organization, which support decision-makers to take effective initiatives. The limitation of this model is it only analyses internal factors of the business. It does not analyze the external forces of business. Thus, organizations cannot develop any strategy only depending on this model analysis (Palmer, 2012)……………….