apple global strategy

Global Emerging Markets: A Case of Apple Inc

Global Emerging Market: A Case of Apple

Contents Introduction .................................................................................................................................................. 3

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Global Emerging Markets: A Case of Apple Inc Globalization ................................................................................................................................................. 3 APPLE INCORPORATION................................................................................................................................ 4 1). Geographies of Economies ...................................................................................................................... 4 2). Global production network...................................................................................................................... 5 3). Global Market place................................................................................................................................. 7 4). Regionalization and Localization ........................................................................................................... 10 5). Competitors and competitive advantage: ............................................................................................. 11 6). Geography of Labour ............................................................................................................................. 12 7). Impact on the environment and sustainability...................................................................................... 13 Conclusion ................................................................................................................................................... 14 Recommendations ...................................................................................................................................... 15 References .................................................................................................................................................. 15

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Global Emerging Markets: A Case of Apple Inc Introduction The term globalisation is so much developed in broader concept by different business scholars and experts, that had explore the world as global village where the different things a have linkage with one and other. The impacts of globalization are seen in various elements such as economies, business people and cultural, etc. this impacts effects on positive and negative way depending on situation and capacity of its reliability. Due to many issues, still big business houses have considered globalization growing factor in their business, industries, countries and world economy. This report is a detail study of the concept of globalisation and its impacts on firms, industries, countries, and world. The literature part had shown, to execute different views that are given by business scholars and experts in favour and critics of globalisation. The Apple incorporation is selected, to achieve the purpose of report, by reviewing the impacts of globalisation on apple operation and logistics. The necessary conclusion is drawn and recommendation is mention in order to improve the Apple’s future global image.

Globalization According to business dictionary globalization terms means “Globalization implies the opening of local and nationalistic perspectives to a broader outlook of an interconnected and interdependent world with free transfer of capital, goods, and services across national frontiers. However, it does not include unhindered movement of labor and, as suggested by some economists, may hurt smaller or fragile economies if applied indiscriminately1. Swedish journalist Thomas Larsson, in his book The Race to the Top: The Real Story of Globalization, states that globalization: “is the process of world shrinkage, of distances getting shorter, things moving closer. It pertains to the increasing ease with which somebody on one side of the world can interact, to mutual benefit, with somebody on the other side of the world.”2

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http://www.businessdictionary.com/definition/globalization.html#ixzz2SjhGwIoO

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Larsson, Thomas. (2001). The Race to the Top: The Real Story of Globalization Washington, D.C.: Cato Institute. p. 9. ISBN 978-1930865150

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Global Emerging Markets: A Case of Apple Inc APPLE INCORPORATION The Apple Inc, is multinational American based company which is manufacturing, designing and development of electronic items such as smart phones, music system, laptop and desktop and other software application etc. There are no. Of registered software of apple which is official includes in its hardware through its operating systems.

1). Geographies of Economies The target market of apple is focusing in different world, and major of customer are business clients, high rich class people and youth from age 16+ to 70 years. In the American markets the share of Apple is very high up to like 37.9% as on second position the Asia pacific region comes which is nearly 29.2%. The customer of Apple Company is highly developing in Asian and European market. The more potential customer of apple is focused in countries like India and china, Malaysia Thailand etc. In Japan the very less customer are focused which is nearly about 7.6% and in European markets is share is constant from last many years which is nearly 25.3%.

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Global Emerging Markets: A Case of Apple Inc The store of apple is distributed worldwide as by august 2012 Apple was having nearly 395 stores and apple online selling was deal in 14 countries of world (Apple Inc., 2012).

Table:1 Apple stores Country

Stores

Country

Stores

United states

250

Spain

10

United kingdom

35

China

8

Canada

26

Japan

7

Australia

18

Switzerland

3

France

15

Hong Kong

3

Italy

12

Sweden

2

Germany

10

Netherland

1

Source: Apple Inc., 2012 3rd quarter 2012 Revenue by Geography 

In America it was 26% high $12.81 billion, from $10.126 billion a year earlier.

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In Europe it was 16% high: $8.24 billion, from $7.098 billion a year earlier.

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In Japan it was 33% high: $2.01 billion, from $1.5 billion a year earlier.

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In Asia Pacific it was 25% high: $7.89 billion, from $6.332 billion a year earlier3.

2). Global production network First production of the all Apple products was in their country (America). All products, including the Mac, iPad, iPod, iPhone, designed, developed and constructed a major center in the U.S. Of the Apple produces unique, high-tech and competitive basis for differentiation, but also used by competitors strategy of global production to minimize costs and increase profitability, Apple is using the global production network to take advantage of the low cost of skilled labor and production close to the market, reduce transportation costs, etc. In the initial period company

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Apple Inc., 2012

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Global Emerging Markets: A Case of Apple Inc was only selling some of parts of Ipod in Hong-Kong. (linden et al, 2007). There was even some products which is outsources by companies like Toshiba in Japan and Samsung in south Korea, these products are different type of Flash memories and Hard drives. The apple even outsources metal products to Taiwan in Foxconn, and respectively plastic products to Singapore (Brown, 1998, p.198). The apple assembling is done in china for all of its products and then export to different markets in global with is home market in US (Kahney, 2008).

In current times Apple had designing companies developed in the U.S. and marketing implementation California, but is mostly outsourced hardware products in some European countries such as Germany and especially in Asian countries like Japan, Korea, Taiwan, China, etc. This will undoubtedly reduce the cost and increase the company's profits, but there are other issues, such as reducing the bilateral trade to create unemployment and budget deficits and the countries to which it is produced.

Critical analysis In this more discuss is shown in relevance to Iphone production and evaluation of same factors which created issues in design and software of Iphone which was manufacture and assemble outside US.

Table:2 Apple iPhone 3G’s Major Components and Cost Drivers Manufacturer Manufacturer

Component

Cost

Toshiba (Japan)

Flash Memory

US$24.00

Display Module

US$19.25

Touch Screen

US$16.00

Application Processor

US$14.46

SDRAM-Mobile DDR

US$8.50

Baseband

US$13.00

Camera Module

US$9.55

RF Transceiver

US$2.80

GPS Receiver

US$2.25

Power IC RF Function

US$1.25

Bluetooth/FM/WLAN

US$5.95

Samsung (Korea)

Infineon (Germany)

Broadcom (US)

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Global Emerging Markets: A Case of Apple Inc Numonyx (US)

Memory MCP

US$3.65

Murata (Japan)

FEM

US$1.35

Dialog Semiconductor (Germany_

Power

IC

Application US$1.30

Processor Function Cirrus Logic (US)

Audio Codec

US$1.15

Rest of Bill of Materials

US$48.00

Total Bill of Materials

US$172.46

Manufacturing costs

US$6.50

Grand Total

US$178.96

Source: www.apple.com

From this Table it can be analysed that nine companies are producing different parts of iphone and how it’s costing is reviewed.

The issue is why Apple assigns a society these components are manufactured in these countries, the answer is the low wage rates in these countries ten times the installation cost of $ 6.5 per unit in China, but the U.S. will be $ 65 in order to reduce costs and maximize profits, but on the other hand, If Apple eventually all U.S. manufacturers, the unit price will cost $ 179 to $ 238 selling price of $ 500, thus reducing the margin of 64% to 53%. But on the other hand, outsourcing of people in America lose their jobs, so that producers in the United States, will return to America's trade deficit of China loser because the iPhone only contributes over $ 3 billion dollars (21.3 million iPhones and manufactured exports to the U.S. 2011), the trade deficit between the U.S. and China. So, a little compromise to reduce the profit margins are not the only people in America get their jobs back, but can increase U.S. exports and reduce imports. That, as part of government forces business situation to do, but the right U.S. companies to maximize their profits, and corporate social responsibility should provide the time President Obama met with Steve Jobs on this topic to create jobs for Americans.

3). Global Market place Market position of the company is the market share hold by company in compared to the competitor. Since Apple is a global company offering a wide range of products such as Apple's various stocks in different markets can be classified markets geographically and product wise, I

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Global Emerging Markets: A Case of Apple Inc will explain the parts of Apple's stock in different regions and countries, where its products such as smart phones, computers, tablet, personal computers, laptops, music players plays vital role in the market. The apple gets 2nd position in its brand value after coca-cola, by Inter brand 13th annual report. The Apple had break off the record of Microsoft Company as in year 1999 it was having $618 billion but in 2012 apple had title of most valuable company by $622 billions. According to Heft and Vance (2011) Apple is officially listed as number one company providing technology related products. Apple is listed as most admired company consecutively last four years (Fisher, 2008: Colvin, 2009: Fortune, 2010) Tablet Market place The tablet market was also polished by Apple as it covers the 69% of total market where as other competitors are also fallen in the small market segments.

Smart phone market place The series of Iphone is most valuable, as it hold advance technology, unique value and all other feature as compared to other products. The demand of Iphone had been so much increased that it initial selling at higher prices. The chart shows the comparison of Iphone with other smart phones, as Apple is leading 29% of total smart phone market of the global though its Iphone series.

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Global Emerging Markets: A Case of Apple Inc The market share of apple is growing from 3rd quater of 2011 onwards till 3rd quarter of 2012 by almost like 57%. The Samsung growth is 103% which is almost double as compared to apple.

In the market place Apple stand on second place by 30% where as Andriod stand on first position by 50% market share from graph finding.

PC Market Share The apple PC market had seen a bit fall by 5% in the United States, as HP is on first position and Lenovo on second and Dell on third respectively. The PC market for apple is bit difficulty as in worldly market the Apple comes on 3rd position by maintaining stability. (Market research by Gartner Pc) MP3 Device Market The profit margin in Ipod is very high, apple is considered as leader in MP3 device markets, as it covers 71% of total worldly share in the globe.

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Global Emerging Markets: A Case of Apple Inc

4). Regionalization and Localization Regionalisation: The process of dividing the world economies or groups of countries by geography, such as Europe, America, Australia, Asia, North America, South America, the countries of Central Asia, etc.

Apple is targeting a different region of the world, the company exists naturally in certain areas of stores, such as America, North America (Canada), Australia, Asia (China, Japan, Hong Kong), Europe (United Kingdom Germany, France, Spain, Switzerland, Netherlands, Sweden), these are the areas people including the Apple physically, but retailers two one a.m. online retailer offers products in all regions of the world, Apple is the first to manufacture the products in the state in America, but in recent years, companies outsource production to Asian countries, where finally, after China is assembling products delivered in different regions of the world demand. Different areas may be other strategies, such as marketing, finance, human resources, legal aspects, best fit in, but eventually these strategies are created to fit the overall objectives of your company. Also, tax rates, foreign currency rates, commodity prices can vary in different areas.

Localisation: means when the product is manufactured and distributed in local markets by differentiating its features from its competitor to outreach customer

The Apple event, offering products design nationally and locally based on software and iTunes in particular all languages. If Europe is considered as most will then countries such as the local market, Apple products are the technology world like the same characteristics, but the purpose of a variety of local markets, software, applications and games in the local language such as

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Global Emerging Markets: A Case of Apple Inc offering Angol not know the market is this great that in many countries, such as Germany, France, Spain and many other European countries, China, Japan, National Program that language is no longer in English so most do not understand English. Apple invested in software applications and games for a variety of developers in 40 languages. So in this way, Apple focuses on local markets and successful global zones and explored the world.

5). Competitors and competitive advantage: Apple had face a stiff competition in the market by have different competitors in different services, such as competitors and the level of competition can vary in the market tablet, the market for smart phones, the market of personal computers, operating systems and other market software tools.

Apple is having a unique differentiation strategy specialist that can create products with high content knowledge, which has more features than its competitors, a very strong brand image and therefore charge high prices and high profits as compared to competitors.

According to hoover (2011) top three competitors of Apple Inc. in USA are fujitsu technology solutions (holding) B.V., International Business Machines Corporation, Media net digital Inc., respectively. These competitors are following cost leadership strategy but Apple Inc. has competitive edge of unique technology, high quality and brand image.

The main competitors of the tablet market, for Apple are Samsung, Amazon, Ansus, Barnes & Noble, etc. The Apple dominates the tablet market with a market share of 69.9%, and high technology, unique features and image brand is offering good value as compared with all other competitors is having lower quality in some features, so the cost of basic strategies to make and maintain market share well maintained by Apple.

Smartphone market, Apple's iPhone is the world's largest and has the most unique technology, in the U.S. Apple's iPhone leading 29% share, while Samsung comes second with 24%, 15% HTC, Motorola 10% the LG Rim 5% to 7%. Nevertheless, when we talk about global competition to send Samsung smartphone is the first time a second 32%, the Apple 15.8%, 5% Htc4.8 Sony%, etc. This classification of smartphones, speak participation We welcome including

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Global Emerging Markets: A Case of Apple Inc mobile devices and even smaller, the rating is different, because Nokia is a global transfer large dignity of shareholders of the device., but, as already mentioned, most of these competitors perform basic strategy of cost, that despite the fact that most phones margin on sales are fewer competitors.

In PC market again, computers of Apple Mac Book guides worldwide, as well as a key target market diversification, unique quality, features and brand image of high prices and increased profitability from our competitor, which compete with sales of HP products in the U.S. Dell also 2 Apple and third place., but also shows the Dell cost because of HP, then profit margins compared to the MacBook example. 999 and HP 500 is a feature unique to Apple and the brand gains more than double the margin compared with the two largest shareholders at the end of most valuable company Apple, when talking about the global market share, Apple has not even came ten times in relation to transport, but again, compared to the profit margins of Apple is the most expensive. Market of Music and play station instrument had globally leading market share of 71% in iPod, a competitor SanDisk 11%, 4%, 2% Microsoft and Sony, Creative Labs, 2%, competitive advantage, etc. unique insight iPod technology, quality and brand. Market of Apple is buying the technology which evolves rapid change as it want to keep itself a leader and win a competitive advantage, as well to make the best of products it uses marketing mix such as product, price, place, promotion, strategies, performance and quality of products and the reliability of the product of innovative design and updated software services.

6). Geography of Labour Means the work of the geography of the division of labor with different abilities have different costs, which are located in different geographical areas, as the genius of the willingness of China, relatively cheap compared to Europe and America , India cheap labor and customers have learned and services, etc., this should be explained by Apple Geography project working where they belong, Apple has immediate employment more than 45,000 works in various departments, the majority of these workers are employed in stores 395 countries, working Fourteen of these stores are mostly in a state in which the stores, but not necessary, it can not be a citizen of this country, but only lived for his work, but the main point is that the skills

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Global Emerging Markets: A Case of Apple Inc required for the job, I want to be in the UK examples of people who live here are of different nationalities working in the Apple store employees in India, China etc. live in the UK for work. This concept defines the number of points, such as two-term or working in different geographical areas that businesses need special skills to pass the state where the main office of the company or a company outsources a function of geography between labor and some skilled and relatively low cost. The apple company, headquartered in California, with offices, laboratories, warehouses, etc. professional developers around the world are attracting more and more technology companies in California that Apple are highly qualified and competent professionals American university or to the United Kingdom, Australia, Canada, Germany, Japan, China, etc., may also belong to other countries around the world to immigrate to the United States Geography, a world-class work. On the other hand, Apple has assigned all of its production in some Asian countries such as China, Korea, Taiwan, Singapore, where employees of different companies such as Samsung, Toshiba, Foxconn, etc. Apple is working directly in the production of various products and parts assembly and parts Apple products in Germany, regional and local headquarters of Apple in Europe, America, Australia and Asia. Design and development of a highly skilled geographies to attract the talented work of the world labor is different, while low-skilled jobs such as construction, etc. are part of a strategy to geographical skills of the labor force is to take advantage of lower labor costs.

7). Impact on the environment and sustainability Apple is one of unique U.S. company based in the brand image in the world, has emerged as one of the most admired companies in the United States and around the world for four consecutive years (Fisher 2008 2009 Colvin, Fortune 2010 ;). As a result, the overall image and social responsibility of the company Apple to manage much of the impact on the environment, not only because it could be a legal issue, but a bad impact on the overall global picture of the product, followed by Apple in compliance with all environmental regulations, but due to some legal problems with subcontractors. Some of the problems are discussed

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Global Emerging Markets: A Case of Apple Inc Like all other multinational outsourcing companies manufactured in Asia to take advantage of their cheap labor, but also the type of interest, the Chinese government, petrochemical (Institute of Public Affairs and Environment) reported 30 IT companies have been involved in environmental issues such as the release of toxins, carbon dioxide emissions, more fraud and breach of a body of work as a message of each company to resolve this viable option plan , every other member is an array, but at first did not agree that the supply chain PAL due to some security reasons, but if it affects the overall view of all Apple, and he was decided that not only all the details of the supply chain, but to set standards and to commit to a contract with the supplier and they have to adapt to other standards to terminate the contract. The questions were as a supplier of forty employees of small production units.

Publisher suicide may issue Foxconn factories and pollution is one of the "Wintek touch device" It is also one of its factories in China charged workers $ 50 per month for shifts 15 hours a day.

According to the study, the CSP Apple is not directly involved in ethics, but the operation of subcontractors involved, but still responsible for Apple to test these unethical procedures to force them to comply with the standards that contrary to the ethical These methods are named registered company, corporate identity and create problems (Sherman, 2010, 2011). A dark after the publication of these questions are important steps and standards toxins outsourcing unit, emissions of carbon dioxide and the rights of workers, etc. It is also possible that these training programs have started outsourcing units.

Conclusion The global financial uniform between countries for the elimination of trade barriers in world trade is very fast and the economy benefit from the process of globalization, but against the people, globalization and the growing point is not that all the farms to get the advantage, because there is an equal amount of the assets that process, so that the negative impact on the economies of people in these countries live their lives worse.

As with any procedure, some positive and some negative effects, does not mean that the process is not an exercise, a useful process of globalization, then efforts should be made to

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Global Emerging Markets: A Case of Apple Inc ensure that this process is where the entire economy can benefit maximum and minimal side effects.

Recommendations This study will examine the effects of globalization on the world, and especially discuss the impact of Apple’s globalization. Based on this study, the following recommendations are made by me in order to explore more benefits for company in future. Apple is doing well in the global market, the only thing that the poor are subcontractors Apple Outsourcing Association to perform some unethical practices. So you cannot expect Apple to strictly follow the laws and ethical rules of society. I employ a clever surprise visit to outsourcing of plants or check the rules. Outsourcing companies also signed a contract with the plants of the company captured criminals to terminate the contract immediately, will be fine.

References 

Bhagwati, J. (2004). In Defence of Globalization. Oxford, New York: Oxford University Press.



Colvin, G. (March 16, 2009). The World’s Most Admired Companies 2009. Fortune 159(5)

76.,

Retrieved

On

July

31,

2011

From

http://money.cnn.com./gallaries/2008/fortune/0802/gallary.mostadmired_top20.fortune/in dex.html 

Porter, M.E. (1998) Competitive Advantage: Creating and Sustaining Superior Performance, New York: Free Press



Sheila L.C. (2004) Globalization and Belonging: The politics of Identity in a Changing World. Roman and Littlefield.

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