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Paper Topic:

Using a company of your own choice from the FTSE100 group, discuss the impact of changes in macroeconomic variables on the company and its business environment. You must make special reference to changes in the inflation rate, interest rates, the exchange

The company operating in personal computers has been producing more advanced computers to the market

Fives forces of competition

Buyer Power

The purchasing power of customers affects the market position and their performance . If the customers of company shift their loyalty to other rival companies then the market position and financial performance will be affected . The best way to deal with this through (i ) Cost leadership - It has reduced the price of some its products including the cost of offering services such as oil refining (ii ) Differentiation strategy

Supplier Power

: -

Apple is faced with the threat of the suppliers being able to control the price of some of the materials they supply . The labor laws are also stringent and the workers are so unionized that treating of employees in a fair and equitable manner is inevitable . The generic strategies adopted by the company against supplier power are by increasing the price of their products . In essence , the extra prices charged for the raw materials are borne by the customers

Barriers to Entry :-

The other force challenging the company is entry of new companies with similar products . This would pose the threat of neutralizing the company 's profits as well as its market share . The generic position that the company has taken has been cost leadership

Rivalry :-

This force emanates from other companies within the same industry like Dell , HP , Samsung and many others . The threat here is that these companies capturing the market . However , the company 's framework strategy have been reducing prices whenever faced with such a threat Prices are then reverted to normal after the exit of that company the specific market segment

Threat of Substitutes :-

From the economist point of view , threat of substitutes arises when the demand of that good is...

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