Identify a company that has expanded or is planning to expand into international markets.
A. Brief overview of the company. what it makes or sells, when it was founded, number of employees, annual revenues/profits, form of operations.
B. Analysis of its international/global strategy. What was the motive for expanding into international markets? You may choose to focus on strategy in a particular region or country or focus on how the strategy changed from country to country.
C. For the country you researched in project 1 (** I wrote about the Philippines in my first paper***) analyze if this company should enter that market and if so, how…ie export, licensing, franchising, strategic alliance or FDI.
D. Discuss challenges, obstacles and setbacks to their globalization efforts and what the firm did to overcome them. What were the company’s key success factor? If not successful, why not? What might have been done differently?
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Ei audire vituperatoribus usu, sed no vidit perpetua adolescens. Vel an placerat posidonium, partiendo corrumpit mel ei. Omnis detraxit dissentias pro ei, convenire conclusionemque eu pro, at eum alia minim. Ea choro everti percipit mea, te impedit ancillae euripidis his. A. Introduction to the Company:
In this essay, we will be analyzing the international expansion strategy of the American multinational technology company, Apple Inc. Apple Inc. was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. The company is headquartered in Cupertino, California, and has over 160,000 employees worldwide. Apple designs, develops, and sells consumer electronics, computer software, and online services. The company’s most popular products include the iPhone, iPad, and Mac computers. In 2021, Apple reported annual revenues of $365.7 billion and profits of $86.9 billion.
Apple Inc. is a global leader in consumer electronics, computer software, and online services. The company’s success is driven by its innovative product design and marketing strategies, which have created a cult-like following among consumers. Apple’s most popular products include the iPhone, iPad, and Mac computers, which have revolutionized the way people communicate, work, and consume media.
In addition to its hardware products, Apple also offers a range of software services, such as the App Store, Apple Music, and iCloud. The company has a strong ecosystem of products and services that are designed to work seamlessly together, providing users with a seamless experience across all their devices.
Apple has a unique corporate culture that is focused on design, innovation, and customer experience. The company’s headquarters in Cupertino, California, is famously designed to promote collaboration and creativity among employees. Apple’s product launches are highly anticipated events that generate buzz and excitement among consumers and tech enthusiasts alike.
Overall, Apple Inc. is a company that has had a significant impact on the tech industry and continues to innovate and push the boundaries of what is possible with consumer electronics and software.
B. Analysis of International/Global Strategy:
Apple’s motive for expanding into international markets was to tap into new consumer bases and increase its market share. Apple has a global strategy that is tailored to specific regions and countries. The company’s approach is to adapt its products and marketing strategies to suit local tastes and preferences. For example, Apple offers payment plans in India and Brazil to make its products more affordable for consumers in these markets. Apple also customizes its products to comply with local regulations, such as offering dual SIM cards in China.
Apple has a strong presence in the Asian market, particularly in China and Japan. In China, Apple has partnered with local retailers to expand its retail presence and has also launched localized products such as the red iPhone. In Japan, Apple has collaborated with local carriers to offer exclusive features such as “Apple Music for Docomo,” which is only available to customers of the Japanese carrier, Docomo.
C. Analysis of Expansion into the Philippines:
The Philippines is a growing market with a population of over 100 million people, making it an attractive target for expansion for Apple. To enter the Philippine market, Apple could use a combination of licensing, franchising, and strategic alliances. Licensing would involve Apple granting a local company the right to use its technology and brand name in exchange for a fee. Franchising would involve Apple granting a local company the right to operate an Apple store using its brand name and business model. A strategic alliance would involve Apple partnering with a local company to jointly develop and market products.
To enter the Philippine market, Apple could use a combination of different entry modes, such as licensing, franchising, and strategic alliances. Licensing would involve Apple granting a local company the right to use its technology and brand name in exchange for a fee. Franchising would involve Apple granting a local company the right to operate an Apple store using its brand name and business model. A strategic alliance would involve Apple partnering with a local company to jointly develop and market products.
One option for Apple could be to partner with one of the major mobile carriers in the Philippines, such as Globe Telecom or Smart Communications. These carriers could help Apple to reach a broader audience and offer exclusive deals and promotions to their customers. Another option could be to partner with a local retailer such as SM or Robinsons, which have a large retail presence throughout the country.
Apple could also consider establishing its own retail stores in the Philippines, as it has done in other countries. However, this would require a significant investment in infrastructure and logistics, as well as navigating the country’s complex regulations and bureaucracy.
Overall, the Philippines represents an attractive opportunity for Apple to expand its global footprint and tap into a growing market of tech-savvy consumers. By carefully considering its entry strategy and partnering with local companies, Apple could successfully establish a presence in the Philippines and further strengthen its position in the global market.
D. Challenges and Obstacles:
One of the main challenges Apple faces when expanding into international markets is competition from local brands. For example, in China, Apple competes with local brands such as Xiaomi and Huawei, which offer similar features at a lower price point. Another challenge is navigating local regulations and laws, which can be complex and vary from country to country. Apple has also faced setbacks such as supply chain disruptions and production delays due to the COVID-19 pandemic.
To overcome these challenges, Apple has invested heavily in research and development to maintain its competitive edge. The company has also established strong partnerships with local retailers and carriers to increase its reach in international markets. Apple’s key success factors include its strong brand reputation, innovative products, and customer loyalty. In markets where Apple has struggled, the company could have benefited from more localized marketing strategies and products tailored to local preferences.
In conclusion, Apple has successfully expanded its operations into international markets by adapting its global strategy to suit local tastes and preferences. To enter the Philippine market, Apple could consider using a combination of licensing, franchising, and strategic alliances. The company’s key success factors include its strong brand reputation, innovative products, and customer loyalty. While Apple has faced challenges and setbacks in its global expansion efforts, the company’s investments in research and development and partnerships with local retailers and carriers have helped it overcome these obstacles.