International business strategies of Apple Inc.
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Transcript of International business strategies of Apple Inc.
International Business strategies of Apple Inc.
Palash Goyal -2014 MBA15
1974
The idea for Apple Computers was
BORN
1976
First Computer was
SOLD
1984
The Macintosh was
INTRODUCED
1985
was dischargedSteve Jobs
1986 1997
Apple II was introduced
Steve Job returns to apple
2001 2011
ipods 4 & 4s
And the Innovations continue…
Product portfolio
Cont..
Cont..
How Apple does INNOVATIONS…“Great ideas push the world forward. And they can come from anywhere.”
Apple relies on their employees’ diverse backgrounds and perspectives to spark innovation. They hire more inclusively, choosing partners who make diversity a priority.
In the US they hired more than 2,200 Black employees — a 50 percent increase over last year — and 2,700 Hispanic employees, a 66 percent increase. nearly 50 percent of the people they hired in 2015 were women, Black, Hispanic, or Native American.
http://www.apple.com/diversity/
• Genius ergonomics make Apple products effortless to use.
• Innovation lies also in Apple’s innovative business models – new synergistic ways to create, deliver, and capture value.
• For instance, the iPod and iPhone would not have
had nearly as much impact if they hadn't been matched with iTunes and the App Store respectively.
Cont..
• Apple attempts to increase market demand for its products through differentiation, which entails making its products unique and attractive.
• Apple has succeeded in creating demand for its products, giving the company power over prices through product differentiation, innovative advertising, ensured brand loyalty, and hype around the launch of new products.
Cont..
Supply chain
Source: www.supplychain247.com
IT research firm Gartner ranked Apple’s supply chain last year as the best supply chain in the world for the third time in a row.
Strength
• Brand equity.• Tag of innovation.• Consumer loyalty.•Amazing software and OS.• Design consistency.
Weakness
•High price.•Restrictions on the phone.•No Steve jobs anymore.
Opportunities
•Continued technological advancement.• Geographic expansion.
Threats
• Android – The single biggest threat to Apple Iphone is the Android operating system.•Samsung with it’s large varieties of mobile phones coming in all shapes and sizes.
SWOT Analysis
Porter’s Diamond Model
Structure of firms & rivalry
Factor conditions Demand conditions
Related & Supporting industries
Government
Chance
• Distribution Network.•Transportation.•Good communication system.
•Brand image (status) •high demand in India till 2014 , but in 2015 when iphone 6 & 6 plus were launched the demand was comparatively less, sales were 10-20% of previous year.*(2)
Source:*(1) IndiaTimes.com *(2) http://retail.economictimes.indiatimes.com *(3) http://indiatoday.intoday.in/ and economic times
•Globalized & Standardized .• Design and technology.•Apple has to compete with rivals like Samsung (tough competitor)and Micromax as iPhone only enjoys 10% market share in India.*(1)
• Redington & Ingram supply Apple's products in India.•Brightstar.
•Apple filed request with govt. to open Apple store in India.•Relaxation in FDI norms.•Relaxation in local sourcing that was 30%.(*3)
Leontiades’ Model
Global high share strategy
Global niche strategy
National high share strategy
National niche strategy
Global
National
High Low
Market share objectives
Mar
ket
scop
e
Cont..
Global Niche Strategy: Offering product mix in mass market.International Standardization.It targets upper segments, having low price sensitivity.High research & development.Unit cost reduction by foreign outsourcing & importing.Apple has 479 retail stores in 18 countries and an online store available in 39 countries.*(1)iphone 6 & 6 plus were available in 69 countries & territories.*(2)
Source: *(1)Wikipedia *(2)www.apple.com
Administrative Cultural
•Working culture in India is slightly
different , attitude regarding the work
creates differences.
•Language barrier is no longer exist for the
international companies like Apple, English
has been adopted as USB of language.
•As Apple is having its own organizational
culture based on innovation , creativity
and secrecy , the challenges arise while
matching their organizational culture with
the country’s culture.
•Biggest obstacle has been removed for
setting up fully owned stores in India for
Apple.
•Union government has relaxed mandatory
condition linked to single brand retail on
30% sourcing from India.
•This is creating possibilities to Foxconn of
setting up a manufacturing plant in India
for Apple products.
•Political hostility and the corruption are
the two terms which is generally
exaggerate by the competitors of the
organizations.
Economic Geographic
•India is having GDP of 1262.62 USD which
illustrate that Apple is having market of
those customers who can afford their
products.
•Labor cost in low, distribution and sales
are the most dominant activities of Apple
in India for that purpose the labor cost is
low.
•Availability of skilled human resources at
lower cost.
•Apple is having 0.15% of world economy
which depicts is financial capabilities itself.
•Location of India is near to assembling
location of apple like China so it provides a
geographical advantages.
•Climate differences can effect the
distribution related operations due to
diversified climate of country.
•Transportation and communication ,
these factors are supportive for the apple
due to availability of giant players in
logistics and also availability of high speed
highways connectivity.
International Product Life Cycle(IPLC) Curve
Conclusion
• Indians getting problems in downloading and there is problem in Bluetooth connectivity so this influence many buyers towards another options. So these problems should be solved.
• Apple should provide some apps free , which are freely available in android market so that they can increase their customer base.
Recommendations
IT’s a RoLLS ROYce OF ELECTRONICs