STRATEGIC MARKETING

Strategy for International Business



Strategy for International Business

Introduction

Apple runs different businesses and is engaged in offering several products and services like computer designs, servers, network solutions and software and services. The company is running a business in USA mainly, having the headquarters in different cities like California and Cupertino. The company is currently having 34,300 employees and the financial results show that the revenue of the company has increased by 14.4% from 2008 to 2009. The main reason behind a huge increase in revenue is the increased sales of iPhone handsets and applications from the iTunes Store (O'Grady, 2008, pp. 125-140).

Apple is selling its products to almost whole world, and almost all the country's can avail the products of Apple Inc. through several sources that include the online delivery, sales through the retailers and etc.

Discussion

Today's world is the globalised world. We are living in an economy, in which the time for people to reach each other in the globe has reduced because of increased technology. Companies are operating their business in a global environment, and thus it is important for them to develop appropriate global strategies. Thus, a global strategy is an organisational plan, for companies having their operations globally.

For example, it is necessary for food manufacturing companies like Nestle, Cadbury and Kellogg's that they should adopt global distribution strategies based on power brands.

Strategic Techniques used by Apple Inc.

Following are the key steps of the global strategies followed by Apple Inc.

1. Apple Inc. treats the global market as the domestic market.

2. Apple Inc. has developed the marketing mix, keeping in consideration the regional and national differences, such as the languages, culture and tastes.

3. It has created the different systems of global production and distribution systems.

4. Apple Inc. has developed the distribution strategies in order to supply its products globally.

5. Apple Inc. has maintained its powerful brand. This is because, global market is so huge and it is necessary for a company operating its business globally, to create a strong brand so that its brand should be globally recognised.

Apple has a global presence and is enjoying its position in United States, but still it has not yet competed Nokia in global strategies. For this, there is a great need for Apple Inc. to develop a dual business model (Mcloughlin, 2010, pp. 212-242). One business model should be for the developed business economies, and one should be for the under developed business economies.

As a global strategy, Apple Inc. is using the differentiation strategy. According to this strategy, Apple Inc. has only a single product in their Smartphone portfolio. Due to this strategy Apple Inc., in 2010, increased its market share to 16.1 %.

As a global strategy, Apple Inc. is focussing on its R&D. R&D helps Apple Inc. to know the trends, culture, and tastes of different countries.

Cost & Differentiation Strategy

Apple Inc. adopts unique cost and differentiation strategy for its global business. The definition of the concept of competitive strategy applied ...