Global Business Environment – Apple Inc is a multinational American company that design and sellscomputer software, consumer gadgets and personal computers.

UpdatedDecember 11, 2024

Q.2 Case study
Apple Inc is a multinational American company that design and sells computer software, consumer gadgets and personal computers. It was
cofounded by Steve Jobs, Steve Wozniak and Ronald Wayne. Apple Inc is wellknown for being innovative as they kept on producing new innovations
from the first Apple computer Macintosh to the more recent iPhone and iPad series. Today Apple Inc. is very well known in the global business environment because of their advanced technology in products such as iPods, iPhone, Macbooks, Apple TV and other professional software. All the high tech products provide consumers with a better living standard in many different ways. Moreover, Apple Inc’s dominant position in the global business environment has changed the trend of consumer usage of electronic appliances such as in virtual communication. People will never need to carry multiple devices where each one only offers a handful of functions. Furthermore, Apple also created a substantial value in highly competitive market and industry which help them to achieve competitive advantages in an industry with stiff competition. In addition, it resolves the other external factors that present difficulty challenges to Apple Inc.

Therefore, now Apple Inc is known as a strong company and the market leader in industry. Now, let us discuss about the current expansion strategy
that used by Apple that make the company has greater success in marketplace. The first strategy that use by Apple Inc for their current expansion strategy in the global business environment is creating innovative idea that slightly different from the competitors that already exists in market and industry. In order to make the company more innovative, Steve Jobs focused innovation on competitive pressure and value proposition by stressing his management style on customer center
innovation and customer experience. As CEO in Apple, Steve Jobs carefully evaluated competitive pressure and opportunity in market place by
continuously pursuit customer experience innovation. He also focused their business and IT strategy on customer center experience. It means that Apple
will be more focused on looking outwards, market and business drivers rather than at the products or services that already exist. Steve Jobs focused on this strategy because the customers can help the company to understand what customers need and scarcity of the people so that he can use the feedbacks as inspiration to deeply investigate and then to create more innovative, creative and highly advanced technological product or services that can fulfill the needs of the customers in the global business environment. Therefore, Apple products design is always attractive and elegant compared to those existing competitors. Apple products like iPods and iPhones are good examples that show the innovation of Apple Company by creating digital lifestyle in a global business environment.

The second strategy applied by Apple is differentiation. Apple is using Macintosh as operating software whereas other personal computer’s producers are using Windows. The differentiation in operating software gives Apple a competitive advantage in the personal computer industry. Macbook
users are satisfied with Macintosh performance because it is very energy saving where the processor will automatically “close” those programs which
are not in use when it is in standby mode. On the other hand, Windows does not have such technology. Thus, Windows’ users might have to charge
the laptop more often due to the battery consumption is higher than Macintosh from Apple in the global business environment.

In terms of design, Apple came out with an ultra-thin Macbook Air which is extremely thin compared to those existing laptops. To those consumers who
prefer lighter and thinner laptops will definitely be attracted to the Macbook Air. Apple does not produce laptops in various colors like Dell or Hewlett
Packard to increase the choices for consumers. However, to those consumers who are concerned about technology and high performance,
Apple is still the preferable choice in the global business environment.

In terms of applications and software, Appstore provides a platform for customers to download software and applications according to categories. It
is easy to search for any application or software by using Appstore. iTunes allow consumers to categorize and download songs easily. By using iTunes,
consumers can choose their preferable album cover for their songs. They can also “synchronize” and update the songs in their iPhone with a laptop.
Besides that, iTunes also allow consumers to transfer photos from iPhones to PCs.

As for pricing, Apple is using skimming pricing strategy where they set high selling price for their products. However, there are still a lot of loyal
customers who prefer to spend more money on Apple products. This is due to the self-esteem where consumers feel good by carrying Apple products
because it somehow shows their status as being up-to-date and their taste is better than others. Some customers think that Apple products are not
cheap but also not high-priced products because the value of Apple products bring to them is never disappointing. Other than that, Apple is using specialization strategy where they customized customer’s laptop according to their requirements. Customers are required to add in features into the laptop which can serve them better in the global business environment.

Beside this, Apple also emphasizes customizability on the part of entertainment that offer computer-build for high performance such as
gaming. Gaming plays important roles to help Apple to customize in features and specification to make the products more attractiveness and creativity. made? What choices must be faced?) in the global business environment?

Question:
(4 × 5 = 20)

What is the summary of Apple case study in the global business environment?
How does strategy match the macro environment in the context of Global Business Environment – Apple Inc?
How does strategy match the industry environment?
What is the company’s major problem (e.g., what decisions must be made? What choices must be faced?)?

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