Apple Inc Market Entry Audit The Entry of Apple Inc into a New Market with an Existing Product or Service

Apple Inc Market Entry Audit The Entry of Apple Inc into a New Market with an Existing Product or Service Executive summary Apple Inc. is a publicly listed American company specializing in the production of high technological electronic products, computer hardware, and software (Apple Inc, 2010). The company products include personal computers, media devices, mobile communication, and portable-digital music players. However, during its international market operations, Apple faces various challenges and opportunities.Advertising We will write a custom essay sample on Apple Inc Market Entry Audit: The Entry of Apple Inc into a New Market with an Existing Product or Service specifically for you for only $16.05 $11/page Learn More The company is nonetheless committed towards bringing the best user experience to all clients around the world through its innovative hardware and software. The peripherals and services have driven the company to open up its operations in the major emerging markets. Thus, this report analyses Apple Inc market entry using frameworks such as Porters five forces, PESTEL, and SWOT. It concludes recommendation on what Apple should do to remain competitive. Apple Inc Market Entry Strategy.  Company overview Apple Inc. is a publicly listed American multinational company specializing in the production of high technological electronic products, computer hardware, and software (Apple Inc. 2010). Under the electronic hardware category, the company products include personal computers, media devices, mobile communication, and portable-digital music players. In addition to high tech hardware devises, the company produces a variety of software applications including third-party digital content applications and networking solutions. Within the mobile communications category, the company has launched into the market a variety of Smartphones including iPhone and other android Smartphones that have significantly hit the world Smartphones market. The company is currently the market leader in the android smart phones and computer techn ology market. The company operations are based on geographical locations. In fact, the operations of the company are segmented based on the nature and location of its customers. The research report analyzes the external and internal environment where Apple Inc operates using various frameworks. Main Findings Current Market Situation: External marketing environment.  PESTEL analysis Political factors Apple Inc. is a multinational company operating in many countries especially in North America, Europe and Asia. Thus, its products are sold in a wide spectrum of political environments. Moreover, its Smartphones consumers are spread across the political divide found in all parts of the world.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Therefore, political consideration is very important factor especially when introducing a particular product in the foreign country market. Thus t he company marketing strategies must be in line with the country policy in which its products are sold (Herzog, 2010). Economic factors The current economic situation around the world has a profound effect not only on the company products but also on the general production capacity. The recent economic downturn experienced in America and Europe has a considerable consequence on the Smartphones domestic market. Sales for the Smartphones reduced as majority of consumers switched to other essential products as their income reduced. Reduction in sales was also experienced in many parts of Europe as well as in many countries around the world. However, this presented an opportunity for the company to introduce cheaper Smartphones in the market (Wernerfelt 172). Social and cultural factors The company Smartphones is sold in an open cultural environment. Moreover, its target market of younger generation pursue vogue and like cultures. Their lifestyles are similar in almost all parts of the world. Moreover, the company Smartphone’s process designs are simplified to meet the needs of all cultures. The company Smartphone’s designs combine simplicity and beauty, the logic that is praised highly in all parts of the world. All the Smartphones that the company has launched into the market has been popular among the younger generation, which has revolutionized the generation cultures (Blomstermo, Sharma Sallis, 2006). However, the company Smartphones designs focuses on the needs and wants of the target market. That is, younger generation needs gargets that are simple and with wide applicability. Apple android Smartphones have achieved that objective. The apple android Smartphone that has been currently released into the market has sophisticated attractive style, which is available, and have gone beyond the fashion (Dziri, 2011). Technological factors The company is operating in a technological and changing environment. Electronic technology has found wide appli cation in many industries and quickly improving. In fact, technology has formed the core of electronic and fiber information industry (Wernerfelt 168). Apple Inc. is one of the leading companies in the electronic information technology industry.Advertising We will write a custom essay sample on Apple Inc Market Entry Audit: The Entry of Apple Inc into a New Market with an Existing Product or Service specifically for you for only $16.05 $11/page Learn More The highly volatile and ever changing technology has made it difficult for the company to hold the leading position in the IT industry. However, with the advent of the android technology in Smartphones, the company made a great stride in capturing the larger market share (Herzog, 2010). Nevertheless, the company improvements on the current technology and innovative culture will enable it maintain its market share on the Smartphones market (Gormley, 2010). Legal environment As indicated before, the company is operating in many countries around the world with various legal regulations. Moreover, these countries have their own domestic companies that produce similar products. Commercial regulations are varied ranging from preferential regulations to patent and rights laws (Henry, 2008). The company is facing many challenges and legal tussles with many competing companies relating to patent and copyright laws and regulations. This has increased the risks for the company. Besides, most of the products take long time before being introduced in the market because of legalities relating to patent and copyright (Shen Lin, 2011). Internal marketing environment Rivalry between competitors While an industry characterized by few large manufacturers and very expensive products hunts a niche audience, the evolution of personal computers has caused an explosion in the industry, which currently includes dozens of companies pursuing millions of consumers across the globe. Due to the use of electronic equipments in day-to-day lives, the tools are becoming more of commodities (Ashcroft, 2011). For most consumers, economy is more important than performance specifications. This has forced many manufacturers to pursue best-cost and low-cost provider strategies. The companies in the middle range compete for consumers by offering various options at varying prices. To hasten the situation, industry leaders like Apple, Sony, Microsoft and Nintendo have always kept to this pace (Biswas, Fraser Mahajan, 2007).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Supplier power Suppliers have significant influence over the manufacturers of electronic equipments. While many standards in the industry are open and made by collaborative or independent bodies like IEE, manufacturers also depend on standards owned privately. Such technology must enter the market and licensed to pay a defined membership fee. Additionally, the virtual concentration of suppliers puts some pressure on competitors. For personal computers, Sony unlike Apple outsources central processing units from Intel (Barrios, Gà ¶rg Strobl, 2005). Thus, incompatibility in design does not allow the company to switch to other suppliers. However, microchip manufacturers are not present in computer manufacturing business and hence rely on computer manufacturers for their business. Buyer power As in all businesses, customers have the last say and apply considerable benefit over manufacturers. The various buyers with many but differing needs influence manufacturers of electronics direct ly since they must react and adapt by offering extensive product-lines. The notable characteristic between power user looking for the ‘greatest and latest’ and average user needing a product which is ‘just good enough’ presents an obstacle to manufacturers focusing on tapping the many customers possible. Manufacturers benefit from the wide use and acceptance of electronic products causing high demand for the products. Brand loyalty and proprietary systems are used to maintain customers (Moshirian, 2001). Threat of potential entrants Many avenues through which new entrants can enter the electronic market exist. However, several hindrances may prevent the entrance. Well-entrenched players who have significant brand loyalty and recognition including Sony, Microsoft, Apple, Samsung and LG among others (Crespo Fontoura, 2007) characterize the current market. Thus developing a successful brand in the presence of such players is difficult. They also keep costs do wn and dominate with economies of scale that cannot be achieved easily by a new entrant unless a substantial capital is invested. Despite these obstacles, new entrants may still come from newly instituted lean organizations, which depend on third party OEM for production (Ruckman, 2004). Threat of substitutes The technology sector has substantially grown with the introduction of alternatives such as televisions, game consoles, Smartphone, virtual music stores and personal computers. There are now feature-rich smart phones and PDAs in an average living room. Such developments have resulted in consumers focusing their â€Å"technology money† away from computers, televisions, radios and game consoles. However, despite the focus it is not likely that smart phones will diminish the importance of other products significantly. The only thing that the substitutes have influenced is elimination of monopoly in the electronic market (Alfaro, Chanda, Kalemli-Ozcan Sayek, 2004). SWOT ana lysis Strengths The company is producing high quality and attractive Smartphones. This has made the products to penetrate and claim the largest market share in both android and other Smartphones market (Chen Mujtaba, 2007). Besides, the company leadership in high technology and electronic industry has boosted the marketability of its Smartphones. The company strengths in technology and powerful innovative capacity have boosted the confidence the target market have on its Smartphones (Dziri, 2011). The company Smartphones operating system has exceeded any other competing Smartphones and this has become one of its greatest marketability strength. The company Smartphones design is fashionable and stylish which enables the user interface. This has enable the company Smartphones be used in diversified cultures. In addition to technological, quality and design strengths, the company Smartphones is diversified with different prices that meet all classes of people (Linzmayer, 2006). Beside s, the company good relationship with the customers will boost the Smartphones sales. The biggest drawback the company Smartphones has is their limited compatibility with other gargets. Apple android Smartphones is not compatible with other applications. This has limited its use. Consequently, its market will significantly reduce particularly where the spare parts are not within reach. Besides, the company Smartphones has limited market and distribution channels as compared to most of its competitors (Dziri, 2011). Another problem is the supplier’s environmental concerns with pollution issues surrounding the production of the Smartphones and other company products (Bernard Jensen, 2007). Opportunities The growing global Smartphones market is an opportunity for the company particularly in countries like China, which is experiencing economic boom. Moreover, the huge population and increasing application of Smartphones by the younger generation offers a potential market. The in novative capabilities of the company are another opportunity to introduce new products into the market (Arregle, Hebert Beamish, 2006). Besides, the growing use of the Smartphones in the developing market such as in Africa presents another opportunity to be exploited (Apple Inc, 2012). Threats The biggest threat the company and its Smartphone products is facing is stiff competition from other firms and similar products. Besides external competitive threat the company is facing on the particular products, the technology used is also hard to maintain. That is, it is difficult to sustain technological leadership in the industry. New technologies are highly pirated by other companies to produce the competing products (Linzmayer, 2006). Recommendations The future of Apple Inc lies on the development of its key competencies to enhance the expansion strategy (Blonigen, 2001). Since the company operates in a highly competitive market, the innovative products, managerial competencies, and e nhanced marketing are critical for Apple Inc future success. Smartphones are categorized under various products that have promoted the company and have remained to be the source of the company’s strength. Smartphone technology is the core company competency. Therefore, developing the Smartphones that satisfy the needs of the targeted market will increase Apple Inc’s internationalization strategy. Moreover, the company must invest in the development of its own Smartphones brand and establish them to be the leading fashion brand. The brand development strategy will ensure that the company offers quality brands that add value to the customers (Antrs Helpman, 2004). In order to attain the strategy, Apple Inc should become conscientious with the general management strategies besides constantly spreading out of the retail areas to ensure effectiveness in attaining the profit margin (Henry, 2008). Compared to other modes, fully owned subsidiary is the best entry mode for App le Inc. The fully owned subsidiaries in the international markets make the firm to have control over the enshrined competencies and initiatives that form the core of the business strategies. The strategy increases Apple geographical diversity while reducing political and economic risks associated with this expansion. References Alfaro, L, Chanda, A, Kalemli-Ozcan, S Sayek, S 2004, â€Å"FDI and economic growth, the role of local financial markets,† Journal of International Economics, vol.64 no.2, pp.113-134. Antrs, P, Helpman, E, 2004, â€Å"Global sourcing,† Journal of Political Economy, vol.112 no.2, pp.552-580. Apple Inc 2012, The new, faster MacBook air, https://www.apple.com/. Apple Inc. 2010, 2010 annual report, United States Securities and Exchange Commission, Washington, DC. Arregle, J, Hebert, L Beamish, P 2006, â€Å"Mode of international entry: the advantages of multilevel methods,† Management International Review, vol.46 no.5, pp.597-611. Ashcroft , J 2011, Apple Inc. the case study 2000-2010. Web. Barrios, S, Gà ¶rg, H Strobl, E 2005, â€Å"Foreign direct investment, competition and industrial development in the host country,† European Economic Review, vol.49 no.1, pp.1761-1784. Bernard, A Jensen, B 2007, â€Å"Firm structure, multinationals, and manufacturing plant deaths,† Review of Economic and Statistics, vol.89 no.1, pp.103-204. Biswas, R, Fraser, D Mahajan, A 2007, The international market for corporate control: Evidence from acquisitions of financial firms, Global Finance Journal, vol.8 no.1, pp.33-54. Blomstermo, A, Sharma, D Sallis, J 2006, â€Å"Choice of foreign market entry mode in service firms,† International Marketing Review, vol.23 no.2, pp.211-213. Blonigen, B 2001, â€Å"In search of substitution between foreign production and exports,† Journal of International Economics, vol.53 no.2, pp.81-104. Chen, L Mujtaba, B 2007, â€Å"The choice of entry mode strategies and decisio ns for international market expansion,† Journal of American Academy of Business, vol.10 no.2, pp.322-344. Crespo, N Fontoura, M 2007, â€Å"Determinant factors of FDI spillovers – what do we really know?† World Development, vol.35 no.2, pp.410–425. Dziri, R 2011, Avoiding strategic drifts in a hypercompetitive market: analysis of apple’s position in the mobile phone industry and suggestions, GRIN Verlag, Munich. Gormley, T 2010, The impact of foreign bank entry in emerging markets: evidence from India, Journal of Financial Intermediation, vol.19 no.1, pp.26-51. Henry, A 2008, Understanding strategic management, Oxford University Press, Oxford, UKt. Herzog, C 2010, Strategic tools in dynamic environments: a framework, GRIN Verlag, Munich. Linzmayer, O 2006, Legend of Apple, Qinghua University Press, Beijing, China. Moshirian, F 2001, International investment in financial services, Journal of Banking Finance, vol.25 no.2, pp.317-337. Ruckman, K 2004 , Mode of entry mode into a foreign market: the case of U.S. mutual funds in Canada, Journal of International Economics, vol.62 no.2, pp.417-432. Shen, C Lin, M 2011, The determinants of cross-border consolidation in eight Asian countries: Before and after the Asian financial crisis, Journal of Multinational Financial Management, vol.21 no.2, pp.89-105.

How to Work Full-Time and Fit in Vacations

How to Work Full-Time and Fit in Vacations Joanna Niles, a lifestyle and travel blogger, wrote about traveling while working full time over at the HuffingtonPost this week. I thought her tips were great- practical and strategic- and my husband and I used many of the same approaches when we plan travel a few  times a year. Look at the calendarSince I teach workshops and college-level courses, my schedule is bound by the academic calendar. This means I can travel a lot in early and late summer, I have a lot of time in January, and I always have a few 3- and 4-day weekends during the fall and spring.Chances are if you work for a corporate or government employer, you have a variety of paid and national holidays to make the most of, too. Not every trip is a week-long extravaganza- we’ve done weekend jaunts to San Francisco, Philadelphia, Portland, Maine, and have a trip to New Orleans coming up at the end of the month. It’s surprising how refreshing and enjoyable a brief visit can be. You can also be more efficient with your vacation days by adding on one before or after a long weekend.TelecommuteNormally, you’d be working during the day and perhaps socializing at night. Maybe you can work out an arrangement where you can take that format on vacation with you, too. Another option is to work after the family goes to bed or before they’re up in the morning.This tip has the potential to backfire since you can also be pursued by work long after you’re ready to unplug, but if you’re disciplined about allowing and restricting access (yours, and your coworkers!), a vacation where you spend an hour or two emailing and coordinating in the morning and then go about your day can be great for making your getaway productive.This summer I had to take a pile of grading to the beach, and the first two days of our trip were divided between lounging on the sand and marking up papers on the balcony. Sure, I wanted to be spending more of my time on the boardwalk, but the alternative w as postponing our much-anticipated vacation just for a deadline, so it turned out to be a worthwhile compromise.Plan AheadWhen my husband and I first got together, he hated the way I liked to plan six months or a year out, but now he appreciates that if you don’t get a head start on planning trips, you can miss out on awesome seasonal opportunities or experiences that sell out as soon as they become available to the public.Don’t forget to set aside some vacation time around the holidays! My first year of working full-time, I didn’t anticipate that my company wouldn’t just automatically close on important â€Å"eves.† If my boss hadn’t been generous about commuting my sick time, I would have had a sad solitary holiday weekend alone in my apartment instead of back in my hometown.Be FlexibleThat said, sometimes you have to just get that price alert in your inbox, click through, reserve your flight and grab a weekend bag. If budget is the most i mportant factor in your ability to travel, get yourself on the mailing list of sites like The Flight Deal and Airfare Watch Dog and stay tuned as rates rise and fall during the various tourist seasons.Where you go is more important than when you go anyway, and remember how nice a quick weekend can be- fly out Friday after work, enjoy Saturday and part of Sunday, and maybe go in a little late on Monday.How to Travel with a Full-Time JobRead More at Huffington Post