Models for Strategic Planning Essay Example | Topics and Well Written Essays - 500 words

Models for Strategic Planning - Essay Example ss has given Apple a great deal of brand loyalty by important target markets as the company is able to develop meaningful and lasting interpersonal relationships with consumers (Goodson, 2011). The first strategic management model relevant to Apple, Inc. is Porter’s Five Forces model, a template by which an organization is able to understand the external market and the various threats that will impede or enhance future strategic success. This model recognizes five distinct threats, including threat of new competitive entrants, the level of bargaining power of consumers and suppliers, the degree of competitive rivalry in an industry, and threat of substitutes (see Appendix A). Apple utilizes this strategic management model to understand whether switching costs for consumers are high or low, which can lead to revenue declines when consumers select competing products (Porter, 2012). This model of strategic management allows the organizational leadership to examine whether new competitors in this industry will potentially seize market share and also serves as a template to observe the competitive marketing strategies being undertaken by main competitors. The Ansoff Matrix is a four-quadrant strategic management model that identifies opportunities for strategic market growth, including diversification, new market penetration, product development and market development (see Appendix A). This model is largely used to identify risks, allowing the business leaders to recognize where the organization is currently positioned and how it should expand to achieve the most effective revenue growth and competitive advantage. By understanding how to position the business for effective market growth, this model ensures proper allocation of financial and human capital resources in one quadrant area most likely to lead to profit gains. Both the Ansoff Matrix and Porter’s Strategic Management model recognize the importance of understanding the external market and competition to