An Analysis Of Apple Corporation's Global Expansion

1231 words - 5 pages

According to the AAA strategies, there are three main positions companies can use in foreign markets to their advantage. The first is aggregation and involves using regional groupings to minimize firms’ costs of adaptation and exploit larger markets to achieve scale. The second is adaptation and involves firms’ targeting their products to suit local markets. Finally, the third is arbitrage and involves firms taking advantage of foreign countries’ economic, geographic, cultural, economic and administrative differences to add value. Apple pursues several AAA strategies in China to maintain its large profit margins and efficient production process; however, it could do more in the way of ...view middle of the document...

Many regard Apple’s smartphone as its strongest business prospect, with projected shipments expected to reach 1.3 billion by 2016. In 2013, China became the largest smartphone market in the world and yet Apple has done nothing to bring down the cost of a majority of its phones, which are not subsidized by mobile phone carriers as they are in the United States. In fact, when Apple introduced the iPhone 5C – what is one of Apple’s cheapest phones in America- to the Chinese market, it introduced it at a price point much higher than the cheapest iPhones available in China. Knowing that Chinese consumers switch phones far more regularly than their counterparts in the West and that low-cost smartphones have been doing extraordinarily well in China, Apple’s disregard for the Chinese consumer’s preferences makes no sense.
Given the economic and demographic crisis in China that is threatening Apple’s success as a producer in its ability to maintain low production costs and its success as a retailer in its ability to sell products in the Chinese market, I think Apple should amend its current AAA strategy. It should focus more on adaptation to form partnerships with fellow electronic companies to manage its relationships with its suppliers and to cater its products to Chinese consumer demand. While Apple has historically had an incredibly productive relationship with Foxconn, recent developments are increasingly worrying that this relationship may no longer continue to favor Apple. Public pressure has caused the government to improve labor standards giving workers more rights and an increased wage. This has forced Foxconn to relocate many of its factories to inland regions where labor is cheaper and mechanize some of its processes, which hasn’t turned out to be very successful. It has presumably been a contributing factor into why Foxconn has begun to diversify its sources of revenues, relying less on Apple’s business. A cheap assembler is integral to Apple’s ability to maintain its incredibly high profit margins. To preserve its power over its suppliers and ensure that it continues to get the cheapest rate possible, Apple could use adaptation by forming a strategic alliance with another major technology company that Foxconn does business with to ensure that Foxconn caters to them and offers them the best rate. However, the worry remains that Foxconn may not be able to maintain its efficiency and low costs due to demographic trends. China’s workforce is poised to peak in 2015 and the total fertility rate needed to replace the population is well below what is required to maintain the labor force. Apple needs to be open to moving its production elsewhere if China cannot continue to give Apple its operations edge. Apple should also adapt its marketing strategies to cater more to Chinese consumer...

Other assignments on An Analysis Of Apple Corporation's Global Expansion

An Analysis Of The Choice Between Separated And Mixed Operation Model For Icbc( London)

9211 words - 37 pages An analysis of the choice between separated and mixed operation model for ICBC( London) Abstract: Since the fifth wave of Merge and Acquisition in the 1990s, the global banking industries have developed towards the direction of large-scale, international and omnipotent banks. The mixed operation of the commercial banks had already been the leading trend in the 21st century. With China’s entrance into WTO at the end of last century, the

Vertical Merger Analysis - Apple Merge Beats

1534 words - 7 pages Case: Apple buys Beats Electronics | | | | | | | | | | | | | | | | | | | | | Word Count of main content: 1187 Introduction In early May 2014, Apple disclosed its intention to buy Beats for US$3 billion and announced the deal completion in early August 2014, welcoming Beats to the Apple family. Apple’s rationale for buying Beats is best summed up by Tim Cook - “Music is such an important part of all


9350 words - 38 pages the various regulations and providing new expansion opportunities. Apple Inc. being one of the global consumer electronics manufacturers, applies their strategic planning with consideration of the Macro Environment analysis. We use PESTEL model (Figure 3a in Appendix) to understand the current issues Apple’s is facing. 3.1 Political Factor Potential FCC Internet Regulation – The debate over ‘Net Neutrality’ has entered the political

Case Study Of Apply

7638 words - 31 pages in making use of the opportunities in the industry while at the same time dealing well with any threats. Internal Audit & Key Financial Ratio Analysis VRIN/VRIO Model The VRIN or the VRIO model is a resource based view that examines whether an organization can use its resources in order to create a competitive advantage. Resources Apple Brand Ease of Use Hardware Used Apple Software Value Yes Yes Yes Yes Rarity Yes No No No Imitability Yes No

The Implementation Of Effective Organisational Change: Apple Inc

3899 words - 16 pages iCloud and the App store. Apple enjoys a high level of brand loyalty and is the world’s second largest information technology company. Project interest The report paper presents an analysis of internal and external environment of Apple Inc, and examines its strategies for international marketing and this is in terms of usefulness and effectiveness for its international operation. SWOT AND PESTEL ANALYSIS FOR THE INTERNATIONAL BUSINESS

Law 531

997 words - 4 pages in damages and with the possibility of that number tripling at Judge Koh’s discretion. This particular case brought forward an unforeseen amount of evidence towards the number of claims that were in dispute. Given that Apple and Samsung are two of the leading companies in innovative technology, there will be a global impact within the smartphone and handheld technology industry. The trial created a new outlook on the relationship between

Wk4 Team Assignment

2276 words - 10 pages benchmarking analysis also comparing Apple to other companies. To invest in a company or not, its economic activities gives idea of the status in the market. Financial statement gives information of financial status of the company as well as its stability. Financial statement is an accounting report of the financial activities of a company base on the entrance and exists of money. Managers use financial statement of the company to evaluate

International Business

1506 words - 7 pages A) The name of the company is Apple. The reasons of choosing this company to explore its experience using the concepts of International Business are as follow: Global pattern of trade * Apple is the global company in the retail industry. 43,000 of Apple employees in the United States to work in the 30,000 Apple stores. Apple retail store employees to do more than the average wage of employees, and provides money for universities, as well as

Apple Analysis

2604 words - 11 pages Executive Summary In week 8 of AMBA 640, we will be analyzing the Apple case located in chapter one of Management Information Systems: Business Driven MIS Inc from an information systems management perspective. Our analysis will look at some of the common tools used to analyze competitive intelligence such as Porter’s Five Forces Model, the three generic strategies for choosing a business focus and the value chain analysis. We will also


3419 words - 14 pages that posture —no matter who’s in charge. (Gallagher, 2012) Apple SWOT Analysis: SWOT is a great indicator of an agency's strategic ineptitude. This involves you creating a two-by-two grid and then populating it with a list of incredibly obvious client strengths and weaknesses, and another list of equally palpable

Individual Assignment

3813 words - 16 pages community and growing as an influential thing in social development sector. Adopting a proper, and transparent strategy will guarantee that CSR becomes a possible area for a development of the society. Conclusion The concept of CSR is still debateable in even democratic countries. There is a major criticism all over the world that corporate companies are using the concept to build their business expansion. Corporate companies are liaising and

Similar Documents

Culture Analysis Of An Organization

2964 words - 12 pages AN ANALYSIS OF THE CULTURE OF AN ORGANIZATION The Student’s Name The Name of the Class Professor The Name of the University The city and State where it is Located The Date Contents 1.0 Background to the Organization...........................................................................................4 2.0 Theoretical Framework

Rhetorical Analysis Of An Article

1620 words - 7 pages —both of which are teams that have heavily incorporated data analysis into how they play the game” (Ross 1). While this trend is becoming increasingly more popular around the league, it still faces major opposition. Many believe that it takes the fun and magic out of the game that they have known and loved for years, while others have even stronger feelings about the subject. During an infamous rant in January of 2014, Charles Barkley, an NBA

An Analysis Of Natural Law And Morality

2190 words - 9 pages Alex Erebor 2/1/10 An Analysis of Natural Law and Morality Human beings are undoubtedly the most sophisticated life forms on Earth. We are capable of many remarkable feats, but the one attribute that separates from other life on Earth is the ability to rationalize and reason. Because of this, humans have been able to form a society in which our activities are judged to be right or wrong. This phenomenon is known as morality and is only

An Analysis Of The Characters Of Hamlet, Laertes And Fortinbras From William Shakespeare’s Hamlet

1467 words - 6 pages Angela Romero 1226344 English IX Tim Keppel An analysis of the characters of Hamlet, Laertes and Fortinbras from William Shakespeare’s Hamlet In William Shakespeare’s Hamlet, revenge is the central topic, which breathes life into the play. As his main objective in life, Hamlet craves to avenge his father’s death, the king of Denmark, betrayed and killed by his own brother. Throughout the play, Hamlet comes across two other main