Global Business Plan, Apple iPhone in China

Introduction

Apple Inc. is ranked as one of the most successful technology companies, and so are its brands and products such as the iPhone. China forms an important part of the iPhone’s, among other Apple product value chain. The iPhones are assembled in China, an aspect that has greatly contributed to the marketability and consumption of the iPhone in the Chinese market. The company has developed various global expansion strategies that have enabled it to penetrate the Chinese market.

Global Expansion Strategies

The international business arena is one that comes with great challenges, complexities and monetary and non-monetary gains, an area that many international companies are paying attention to (Hill, 2013). Apple has continuously expanded into the world markets through embracing high technology among other strategies. Some of the strategies that are applied by Apple in the promoting global expansion of the iPhone include exporting, foreign outsourcing, foreign licensing, importing, and direct investment in foreign countries. Importing and foreign outsourcing allow Apple to access cheaper production of the iPhones, which in turn allows the iPhones to sell at a cheaper price, allowing it to fit in the global market (Yukari & Rohwedder, 2010). Apple products are assembled in China, where cheap labor has allowed the company to incur a lower cost of production, thus leading to a lower market price. Foxconn is the company in which the Apple products are assembled in China.

Exporting of the iPhones in more than 88 countries has allowed the company to expand its global presences and its phone to be accepted by more consumers. The company has developed retail stores strategy that has enabled it to start retail stores in different countries, in its plans to expand its sales (Wingfield, 2006). Foreign partnerships and licensing have enabled Apple to spread its brands including the iPhone into highly competitive market shares such as that of China. The rapidly growing economy of China has enabled it to stand out as one of the largest markets for the iPhone. The company has developed a supplier code of conduct that is used in regulating its transactions with foreign companies.

Value Chain and Profiting

Apple controls its own design, an aspect that has enabled it to be effective in maintaining uniqueness in terms of its brands, especially the iPhone. The company engages customers in value proposition, an aspect that has enabled them to provide an adorable experience for its customers (Gobble, 2012). The sales and distributions of the company are managed by the company itself. This allows it to maintain a great experience for the customers as they purchase the company’s products, an aspect that is vital for product mix. This management of sales also allows the company to monitor the market trends, and to effectively evaluate the consumer feedback.

Apple Inc. purchases the different parts that make up the iPhone from different companies all over Europe and in Asia. China’s Foxconn assembles Apple’s products including iPhones. The company has employed more than 20,000 individuals in China, who participate in the manufacturing and global marketing. Production at the companies in China are standardized, an aspect that reduces products errors and maximizes quality consistency. These companies are also reliable due to their high flexibility, in response to late orders. The companies in China offer cheap labor, an aspect that has allowed the company to maximize its profits due to low costs of production. The company encourages innovation among its employees, an aspect that has led to the invention of new ideas that have been used in the modification of the iPhone among other products to maintain high consumer experience (Mallin & Finkle, 2011).

Conclusion

It is evident that Apple has established advanced strategies that enable it to effectively maneuver through the global market and stand out as one of the greatest companies dealing in electronics. The company’s value chain also involves various steps including outsourcing, an aspect that promotes its sales and profits.

References

Gobble, M. A. (2012). Apple scores a win in the smartphone wars. Research Technology Management, 55(6), 4-5.

Hill, C.W.L. (2013). Global business today (8th ed.). McGraw-Hill Higher Education.

Mallin, M. L., & Finkle, T. A. (2011). Apple Inc.: Product portfolio analysis. Journal of the International Academy for Case Studies, 17(7), 63-74.

Wingfield, N. (2006). How Apple's store strategy beat the odds. Wall Street Journal, Eastern edition, B.1.

Yukari, I. K., & Rohwedder, C. (2010). Apple targets global markets - Electronics giant speeds overseas rollout of new iphone to 88 countries as it looks for growth. Wall Street Journal, Eastern edition, B.5.