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Globalization Globalization refers to simply exchange of products, services, world views, ideas and different aspects of cultures beyond the boundaries of a country. There are several factors responsible for the era of globalization such as transportation (ships, airplanes), information technology (internet, computers). Now globalization plays a vital role in the economy of every country across the globe and it becomes easy for every country to fulfill the demand of their population in terms of the products that are not available or produced into that country, for instance, UAE is not capable of growing crops due to infertility of the land and they have to rely upon import of food products upon other countries and it becomes reality only due …show more content…
to globalization. Apple – A leading globalized company There are a plethora of companies in this world that are an idle example of globalization and one of such company is “Apple” that is one of the most popular company throughout the world and is known for its creativity. It is a globalized company in a true sense as the technology and concept of this company has been originated in The United States, the production is running in China, and the distribution of products and services is carrying down across the globe. Company Name Apple Founded April 1, 1976; 39 years ago Cupertino, California, U.S. Founders Steve Jobs, Steve Wozniak, Ronald Wayne Area Served Worldwide Reason to choose Apple Company • The primary reason to choose “Apple” is that it’s the most valuable brand according to a survey revealed by Forbes magazine. • It can be a great learning experience by studying the working of the company in different parts of the world.
• It is the most successful company all over the world. • The ideology of “Apple” is different from other companies that makes a sense to study it and get some lessons of success and survival into today’s era of huge competition. Impacts of Globalization on Apple Apple Company has been affected a lot due to globalization and the company also derived many benefits because of Globalization. Ultimately, the company could prove its potential into this era of Globalization and becomes the most successful company despite of many ups and downs in the history of Company. Benefits due to Globalization to “Apple” Lower cost of production As the company produces its products in China that leads to lower cost of production in terms of less labour cost. It helps the company to manufacture its products at lower cost that further helps in facing a tough competition into computer hardware and Software Company. Bigger market size Due to globalization, Apple’s market size has been escalated because of access of different countries in the world. Now the products and services of the company are being demanded in various parts of the world. It also leads to more earning and
profits. Cost due to Globalization to “Apple” Competition As the company is facing cut-throat competition from different giant companies like “Samsung”, and “Apple” has to pay huge cost in terms of sharing markets and profitability with its competitors. Market share 13.9 percent (smartphone) 13 percent (Macbook) Profitability US $39,510 Billion (2014) Growth in employment 115,000 (As of July 2015) Expansion of branches 453 Apple retail stores in 16 countries (March 2015) Global Opportunities for “Apple” due to Globalization Free market trade One of the biggest opportunity for the company arose is to take advantage of free market trade among many countries that leads to expansion and diversification of company in new markets. Budgeted Products- Production in China Company got an opportunity to produce products into such countries where labour is inexpensive and it becomes a way to produce products at lower cost. It’s also a great way to capture more market share by launching products at reasonable cost and it will also give a tough competition to the competitors. As majority of people in the world belongs to middle-class, and they cannot afford much expensive products of Apple. By providing products at reasonable cost may escalate profitability and market shares of the company. Response by “Apple” to grab Opportunities Apple tried to give a competition to budgeted smartphones by launching a product “IPhone 5C” with an intension to capture more market share. The product became popularized and the company’s strategy proved to be successful. The sales of “IPhone 5C” added contribution to the market share and gave the opportunity to the company to enter into new market. Challenges faced by Apple due to Globalization Barrier of expansion One of the challenge faced by the company is to expand its business in the under-developed countries and the reason is that a major portion of population is living below poverty line and they cannot afford such expensive products made by “Apple”. Challenge to face competition In this era of Globalization, the easy availability of resources making the competitors strong and become a challenge for the company to tackle them and to create a USP (unique selling proposition). Conclusion At last, it can be concluded that Globalization has contributed a lot in the success of the company by providing benefits like lower cost of production, bigger market size and, besides this, Globalization has also created opportunities such as free market trade and production of goods beyond boundaries of the parent country. On the other side, Globalization has also makes the journey of “Apple” difficult by providing competition. Citations http://www.kstatecollegian.com/2013/05/07/4-positive-impacts-of-globalization-on-world-economy/ http://www.worldometers.info/world-population/ http://www.forbes.com/companies/apple/ https://en.wikipedia.org/wiki/Apple_Inc. http://www.economicshelp.org/blog/81/trade/costs-and-benefits-of-globalisation/ http://www.idc.com/prodserv/smartphone-market-share.jsp http://recode.net/2014/11/06/mac-hits-market-share-milestone-in-u-s-what-post-pc-era/ http://techcrunch.com/2014/03/24/apples-iphone-5c-sales-story-is-a-complex-one/ Assignment- World Geography and Cultures Submitted by: Puneet (N01122868)