Discussion
Apple Inc. ( Company) is a multinational company that deals mainly with consumer electronics, software, and technology-related services. The company has its online streaming entertainment service as well as a cloud-based service for data storage. It is one of the largest information-based companies in terms of revenues totalling up to US$ 365.8 billion in the year 2021. The company has also become the first public-traded US company with a valuation of over $2 trillion in August 2020. The apple store is present in 175 countries and is known as one of the most valuable brands in terms of brand loyalty (Li, 2021).
The global brand representing here is Apple Inc. founded in 1976 by Steve jobs and it is the world’s largest technology company surpassing Microsoft. Apple together with its subsidiaries design, produce, and sell personal computers, products for mobile communications, digital music devices, software packages, networking solutions, and applications. The product line of Apple includes iPhone, iPad, Mac operation system and laptops, Apple TV, cloud-based service called iCloud. (Ximénez and Sanz, 2014). The company also has a network of stores to sell its products and services in the global market such as App Store application, iTunes store for music, iBookstore, and Mac App Store. The company also designs and produces its computer peripherals and expansion cards. The company also releases its new products every year from old versions to capture the market and all the products have enhanced features and innovative solutions. Apple devices have unique features and can only be licensed under the Apple company (Dave, 2018).
The global organisation truly means the brands that have survived in the markets rather than their original market with successful brand management planning, Apple is a global brand it is present in more than 25 countries including emerging and developed countries like China. The research of development brought by Apple in its products has significantly increased its value in the global market. the hardware and design that apple brings with a combination of technology and innovation have sought many consumers (Razak et al., 2020). Apple brand has shown that to become a global brand it is important to become a consistent differentiator with competing products with price and design which will the theme of futuristic smartphone evolution. The brand has also set various factors geographically like pricing and services to enhance its presence for different markets based on the requirements of the customers. Apple also used the absolute advantage to design its products and services in the US and constantly innovate to comparative advantage. Apple’s current new trade theory helped the brand in reducing unit costs over large volumes to cater more products to consumers (Miller and Maxwell, 2016).
i. Analysis of Global Brand and its Products and Services
The market attractiveness is the first factor that helps brands to develop their growth in the international market. Market attractiveness depends upon the demand for products in the following market. through research and development of the product, Apple has considered that the smartphone as well as electronic gadgets market will significantly increase due to changes of generations and innovations (Clarke and Boersma, 2017). The company-new design and consistency of bringing unique services with smooth experience have triggered Apple is launching its products in other countries. Brand awareness is the other factor that helps the brand to launch its products in a new market. customers are familiar with Apple products and services as well as the quality it represents. Therefore, Apple considers the global approach to provide this service and products to customers so that strong brand loyalty can be captured through market penetration. Apple products and services are unique and cannot be used by other brands which increased the brand reputation and in order to provide experience to the customers globally by iOS package, software’s in its devices the brand has gained value and brand recognition. Economic factors including policies and development and foreign direct investment have also triggered apple to invest in other countries (Khan, Alam and Alam, 2015). The other factors include social and technological factors. Social factors include consumer trends in using the latest Apple products and technological factors include the use of new technology worldwide for better productivity through sustainability has also helped apple to expand its products and services globally. The global presence of Apple has enhanced its sustainability through brand quality and new products innovation consistency for the new markets and also after-sales service the brand provides to the customers (Lockamy, 2017).
The main success factors of the apple brand are its innovation, design, and user interface. The other success factors of the brand are new product development in the global market and market campaigns and promotions. The brand also provides a secure and safe system to the consumers with a smooth user experience that has increased the value of the brand in the eyes of consumers. The brand also addresses customer preferences through a graphical user interface which makes the devices more appealing and also brought stability to its products. The main marketing strategy of the brand is to provide value to customers rather than focusing only on price (Dave, 2018). The main competitors of Apple are Samsung Electronics centred on providing customers with electronic and software peripherals, Google also provides technical service and also launched android which represents 53% of the smartphone market, and Microsoft competing with Apple with computer OS services famously known as Windows. The main competitive advantage of Apple is its Supple chain management focusing on the Horizontal approach allows customers to provide value through larger order volumes, the company has also adopted a differentiation strategy with a strong brand image focusing on value generation, privacy, and user experience (Dolata, 2017).
ii. Apple Global Approach
Globalization is the concept that describes the value of trade and technology while connecting the world to one place. The globalization of trade has enhanced the connectivity between countries and people and has also helped multinational companies to launch their products and services in the new market. customization is the process of changing the qualities of the brand to meet the demand of the customers through learning the expectation of the consumers market. Apple has used a broad differentiation strategy in its products and services which cannot be copied by its competitors (Peng, 2021). The company has designed and developed its products and customized its products to meet the demand of the customers through value generation. The company has also represented globalization by adopting new technologies like Apple has collaborated with China Mobile to cater apple iPhone to Chinese consumers. The company has also started to plant its manufacturing units in different countries to reduce operational costs. To increase revenues, the brand is looking for countries for their final assembly production. With a horizontal supply chain, the company is also catering its products in larger volume through online and offline stores as well as apple store catering services in many countries. The company expand its service globally through quality offering and enhancing customer experience through after-sales service. There are no other brands that can provide consumers with an iOS user experience giving it an edge to the organization (Greg, 2020).
Ethical considerations practices of Apple include Honesty which indicates maintaining standards in all business dealings, Respect which indicates the company in treating the stakeholders of the company with courtesy, Confidentiality which reveals company protection towards confidential information and the information of customers partners and employees, and compliance which address company business decisions comply with rules and regulations. The company also offers employees the right to speak freely about working conditions and wages. The egalitarianism concept which suggests businesses treat and provide equality to everyone through fair judgment should be adopted by the company to emphasize its ethical values. Apple is also powering all its facilities through renewable energy to combat climate change and reduce its carbon footprint. The company has also launched a programme to improve working conditions through increasing minimum wages and reducing employee overtime (Jasanoff, 2016).
Due to the outbreak of the covid pandemic apple has to shut down stores and corporate offices in many countries. Due to less footfall and lockdowns the company has faced dipping in sales in the year 2020. Suppliers issues have also impacted the shipping of apple products and low labour return rates led to delays in factory production. Apple in March 2020 see revenue cuts from $63 billion to $58.3 billion. The challenges include lower production rates, closed retail stores, and a smaller number of employees working due to Covid. The main opportunity for the brand post covid is to increase its production unit to meet the demand of the rising economy of the countries. The brand is also building a strong online portfolio for delivering products on time to consumers. The company is also providing training to its employees for maintaining proper health and following safety standards as a part of employee wellbeing (Shemtob and Asanati, 2022).
Conclusion
Apple Inc. is the world’s most valuable company in terms of revenues and innovation. The company is constantly trying to invest in new technologies to disrupt the market through innovation. The company has also helped employees in providing compensation in the recent outbreak as a part of the ethical duty to look after the employees’ mental and physical health. The company is also investing in the research and development of its products for creating a value proposition for its customers.
References
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Dolata, U., 2017. Apple, Amazon, Google, Facebook, Microsoft: Market concentration-competition-innovation strategies (No. 2017-01). SOI Discussion Paper.
Greg, R., 2020. Strategic Review on Apple Inc Marketing in the United States of America. Journal of Marketing and Communication, 3(2), pp.47-61.
Jasanoff, S., 2016. The ethics of invention: Technology and the human future. WW Norton & Company.
Khan, U.A., Alam, M.N. and Alam, S., 2015. A critical analysis of internal and external environment of Apple Inc. International Journal of Economics, Commerce and Management, 3(6), pp.955-961.
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Lockamy III, A., 2017, July. An examination of external risk factors in Apple Inc.’s supply chain. In Supply Chain Forum: An International Journal (Vol. 18, No. 3, pp. 177-188). Taylor & Francis.
Miller, T. and Maxwell, R., 2016. Apple. In Global Media Giants (pp. 369-382). Routledge.
Peng, M.W., 2021. Global strategy. Cengage learning.
Razak, M., Hidayat, M., Launtu, A., Putra, A.H.P.A.K. and Bahasoan, S., 2020. Antecedents and consequence of brand management: empirical study of Apple’s brand product. Journal of Asia Business Studies.
Shemtob, L. and Asanati, K., 2022. Beyond COVID: the changing face of work. Occupational Medicine, 72(2), pp.90-90.
Ximénez, J.N.M. and Sanz, L.J., 2014. Financial decision-making in a high-growth company: the case of Apple incorporated. Management Decision.
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