Monday, October 3, 2016

Developing a Global Vision

Apple Inc and Globalization


  • Business Strategies 
A firm can use two basic types of business strategies to leverage its business by utilizing its strengths and combing them with the number of available positions to market its products. These business strategies are cost leadership strategy and differentiation strategy. 

Apple is currently working on the differentiation strategy by putting unique elements in the design and development of its products The differentiation strategy is defined as a strategy that aims to develop the products and or services that have unique characteristics that are well liked by the customers and are valued by them. This strategy enhances the market position of the companies with respect to their counterparts (Porter, 1998)

Apple Inc. strives hard to provide excellent usage experience to its customers by offering innovative products in terms of hardware, software products as well as other offerings. The company is using its ability to design unique products and operating systems etc. with its integrated business units and design units. The success of the company in the global markets is due to its extensive focus on the  the market research and development for the development of its products and services. With reference to its business strategy, the company is in a continues process to build and advance the robust platform that can enhance the listing of third party content like mobile phone apps, games etc on its online stores or its iTunes store (Apple Inc.,2010).

Moreover, the company strategies also involve the expansion of its distribution network in order to improve its global reach by providing high quality products and services with after sales services to their customers. Therefore, the company is positioned uniquely in the markets to offer superior and integrated digital technologies and productivity solutions. 
  • Markets and Distributions
The customer segments of the company are divided into various categories. The needs of the main customers markets it caters are of small and medium businesses, education sectors,large corporations, government departments and other related markets. In order to meet the needs and wants of these consumer markets, the company is utilizing direct and indirect distribution channels including online sales  services, retail stores and direct sales force as well as third party sellers, retailers etc. Using direct sales contacts with the customers is, believed by the company,leveraging its product sales and has demonstrated as an advantage to the company over its competitors. In order to maximize its sales and to make sure that the buyers are receiving high quality experience, the company is in a process.
  •  Outsourcing Plants
It has built its integrated manufacturing and design facilities in the various countries for example in California, Singapore etc. This global network allows the company to develop and launch the products in its markets of America, Asia and Europe. It produces its products, for example ipads, in the Shanghai, China which has given it a cost saving advantage and lead to the increased profitability for the company (Chaffin, 2002). But on the other hand, this outsourcing has increased the downsizing and unemployment rate in the home country (Rodriguez-Clare,2011)

Recommendations:
1.Apple Inc. lags only in its outsourcing associations with the other companies at different countries of the world. In order to improve the outsourcing practices ethically, Apple can strictly ask its outsourcing partners to comply with the ethical rules, and regulations.
2.It can hire the team of internal auditors to conduct surprise visits in these outsourcing units to check out their operative practices. 
3.The company can also enter into a contract with these outsourcing units that if theyfound guilty, the company will immediately terminate the working contracts. 

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