Globalization is the highest stage of internationalization, where the broader representation under it means the totality of processes and phenomena such as trans-border flows of goods, services, capital, technology, information, cross-country movement of people, and prevalence of orientation to the world market in trade, investment and other transactions territorial and institutional integration of markets.
Global marketing is the marketing of global organizations that lead their production and marketing activities, considering the whole world as one big market, where its regional and national differences do not play a decisive role. [1]. Companies should view the world as a potential market to compete with the markets of other countries because companies cannot longer afford to pay attention only to its home market. Many industries are global industries, and firms operating in the international market are seeking to reduce costs and increase popularity, whereas the global marketing is associated with higher risk because of the instability of exchange rates, unstable governments, trade barriers, protectionist measures and other factors.
The first driving force is competition. One of the factors that forced Apple Company to expand its products globally was due to high competition in domestic market. Also, opportunities to growth became hard for the company as domestic market started producing competitive products which brought to decrease of market share. Solution for avoidance the high domestic market competition is global expanding. There are many countries that have the potential for further growth of the company. According to the case study, United States is the survival arena where the main competitor for Apple Company is Son...
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... is the increasing interdependence of economies of different countries and the development of integration processes in the macro and micro-levels. This modernity is World-Trade Organization (WTO) and General Agreement on Tariffs and Trade (GAAT). For instance, the only places where companies can experience and expand, share knowledge and gain resources, enjoy market share and competitive advantage are at European Union (EU) as the trade barriers are not existed. It creates a greater vision of many companies that want to expand internationally. Thus, Apple products with low barriers to entry are able to be penetrated with the benefits of international agreement.
In conclusion, the five forces that drive Apple to global integration are competition, low cost production, technology advancement, consumer’s tastes and preferences and political regulations. Globalization
Complex linkage management entails planning and management of business activities involving procurement and sourcing, logistics and transportation activities. It also includes collaboration and coordination with business partner in all parts of the world. The business partners can be customers, intermediaries and suppliers of Apple product. Complex linkage integrates function with responsibility for linking Apple business functions across its companies. It includes manufacturing operations and coordination of Apple’s product design, marketing, sales and transfer of information concerning the products Complex linkage also entails the relationship between the cost of production and the price of the product at the international market. It is advisable for the company to focus on their market stock while determine linkage. There are several factors that favor complex linkage. At the international level, market diversification is a necessary condition for international complex linkage. Formulation of alliance policies and agreement with overseas suppliers is another factor for competitiveness.
Global marketing is defined as marketing on a worldwide scale, or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives. Marketing managers are also tasked with the responsibility of “wringing the pennies out of the activities.” Basically, they are responsible for and add value to their activities that will contribute to a higher value in the mind of their consumers. Managers must understand the role of their salespeople as marketers – they must collaborate and support them. They must work with their supply chain functional managers to accommodate international customer preferences. Communication must flow up and down the chain quickly in order to respond to emerging international marketing threats and opportunities. It is essential to monitor the firm’s global marketing efforts in a global market.
This segment can either put Apple on the edge of advantage or decrease the company’s capabilities. Over the years, Apple has proven to be a giant in this field because of its innovative products and services. Apple always takes the led while its competitors follow suit, although this also poses to be challenge for the company, it took Google less than one year to replicate ApplePay, Google called it AndroidPay it has the same capacity to function just exactly like ApplePay. This shows that Apple’s products and services could be copied thereby reducing the uniqueness of the products. Because the short lifecycle of technology, Apple needs to keep upgrading its products and services to stay on the top of the game. “Because the industries in which
The concept of Porter’s Five Forces can be utilized to determine the competitive intensity and attractiveness of a particular market. In respect to our chosen company Apple, this tool is useful both in understanding the strength of the organisation’s current competitive position, and the strength of a position that an organisation may look to move into. This section will use Porter’s five forces to understand whether Apple’s products and services will be profitable within the Chinese market as well as identify the company’s key areas of strength, to improve weaknesses and to avoid mistakes.
The company not only produces the number of highly technological devices, but also has a great brand ideology lying behind. The following chapters would review each of factors determining Apple`s success.
to maintain being a leader in international business they must continue to adapt to the five major kinds of drivers of globalization. These drivers are all based on change: (1) political, (2) technological, (3) market, (4) cost, and (5) competitive. What are these drivers of globalization and how can these five drivers of globalization affect Apple Inc.? Well, let us take a
Apple sustains the process from the time at which investments in productive capabilities are made until the innovative products come onto the market.
Apple can adopt the strategy to portray a picture of a not so conducive less profitable market, which could discourage new entrants from picking that path as they will be demotivated by the low return on investment resulting from low profitability levels. In order for apple to create a niche for t numerous products, it needs to adopt and implement such bold strategies of defense to protect their interests and continue to be profitable and successful (Ideavist, 2011). Entry of a new company into the technology sector would spell doom for most companies already struggling for market share as better priced and reliable products could imply consumers would shift their preference to the new entrant leading to a negative volume of sales stir for most already established companies. Another strategy that could be employed as part of Apple’s defense could be the pre-entry strategies that make it even harder for new entrants to compete and enter into the sector and this involve continuous improvement for their products, covering
Apple benefits from excellent brand recognition and a stellar reputation. Apple’s reputation attracts new customers and its performance retains existing customers, making its brand a valuable strength. Also, Apple profits from being a vertically integrated company, which allows it to control many elements in relation to its products, like the processor, hardware and software designs, operating system, and cloud services. It ensures that customers stay within their brand for all their technological
firms to replicate or imitate the products as well as processes of the Apple Company.
In week five we learn about the importance of globalization and how it can help your company’s profits grow. There are many things to look at when selling globally as different cultures need to be looked at differently when making a marketing strategy. If you understand how to market your products to different cultures in different countries you can take advantage of the profits that can be made through globalization.
A globalizing business sector advertises viability through rivalry and the division of the work it permits individuals and economies to keep tabs on what they specialize in. It also allows people to go globally. Globalization has stretched the assets, items, administrations and markets accessible to individuals. The increasing set of reliable connections around individuals from distinctive parts of a world that happens to be separated into countries.
Globalization is the connection of different parts of the world. Globalization results in the expansion of international, cultural, economic, and political activities. As people, ideas, knowledge, and goods move easily around the globe, the experiences of people around the world become more similar. (“Definition of Globalization“, n.d., ¶ 1)
Apple Inc. is a multinational company, based in America, which innovate, develop and sell personal computer its software named Macintosh and various other products like the iPhone and the iPad. In 1976, Steve Jobs started the apple era and the business has grown rapidly to one of todays’ iconic inventors of consumer electronics. Despite the company operates in a wide field of products, Apple is handling every of their products as a separate business unit, but with a similar and recognisable design. This report will focus on Apples last invention, the iPad, and analysis its position within the market and future perspectives (Apple Inc., 2012).
The term ‘Globalization’ refers to is the integration of economies, industries, markets, cultures and policy-making round the globe. It explains a progression by which both national and regional economies, societies, and cultures have become incorporated through the universal system of commerce, communication, migration and transportation.