Globalization of Apple

Globalization of Apple

Introduction

Globalization refers to the interaction and incorporation between people, organizations and governments from all over the world. It is a process which is backed by international trade and investment and driven by information technology. The entire process of globalization has impacts on the economic progression, political stability, well-being of the society, culture and information technology (www.globalization101.org). Today the world has become a global village and this notion of the global village has interlinked each and every thing in the world. Globalization had made it easy for us to see and use the produced goods and services anywhere in the world. With the help of globalization, the concept of outsourcing became possible. Outsourcing deals with a company which decides to take services from another company to do a particular function or task (www.sourcingmag.com).

In this paper, we will try to understand globalization in terms of the business world and its effects on the economies of the different countries. The company Apple Inc. is analyzed to understand the impact of globalization and global outsourcing on the company's functions and processes.

Discussion

The products of Apple have entirely transformed the way businesses are carried out across the globe. The simple and handy design and unique interfaces concealed extremely intricate technology, enabling the world's leading technology available and accessible to everyone in the world (www.prezi.com). Apple employs around 43,000 workers in America and 20,000 people in the rest of the countries. There are a lot of people who work for the contractors of Apple; further 700,000 workers help building, engineering and assembling the products of Apple including iPhones and iPads. Surprisingly, none out of 700,000 people work in United States; instead they work in the factories of different countries of Asia and Europe, to manufacture Apple products (Rajadhyaksha, 2012).

The company struggles to deliver exceptional usage experience to the customers by providing them new and innovative products with excellent hardware and software qualities and specifications. The reason Apple is able to design innovative and advanced products and operating systems is that it has integrated business and design units through which the company successfully produces with maximum efficiency and minimal costs. Company success in the global market is dependent on is extensive emphasis on market research and development in order to cater different markets of the world. The company strives to expand its distribution network so that its global reach is improved through offering the best quality products and services (www.scribd.com).

Effects of globalization of Apple

Apple employs a system of house manufacturing for its products, which means that, the products are marketed and designed in United States, but it is using outsourcing strategy in the production of the parts of the products with the help of international supply chain partners. For example, iPod parts are outsourced to a subcontractor in Hong Kong, subcontractors of Japan and Korea are outsourced for the manufacturing of hard drives of Macs and Foxconn Company is outsourced for the production of all the metal components in ...