Apple

Introduction

Apple Inc. is a multinational company based in the United States. The company specializes in
consumer electronics such as personal computers, software, media players, mobile phones,
fixed computers and accessories. The company was founded in 1976 by California's Steve
Wozniak and Steve Jobs. Apple has become a leader in developing high-quality home
appliances. The company specializes in manufacturing and designing electronic products and
other consumer-related software products.

Apple-Politics, Economy, Cultural System

In addition to Antarctica, Apple works on almost every continent. Apple has offices, studios,
manufacturing centers, marketing, sales and marketing centers in the United States. US, UK,
France, Brazil, India, China, Singapore, Australia, Germany, Sweden and other countries.
Compared to American companies, Apple's international business is very complex. In
countries where Apple is operating, there are significant differences in economic
development levels and future economic growth. In many countries, politics, economy, and
legal systems are different. In the United States, the business community is a powerful
market economy. Compared to China, the culture is individual and the Chinese business
community continues to develop. It is characterized by group culture. The United States is
based on democracy, and the communist dictatorship began in China. However, Apple has
invested billions of dollars in a profitable production facility in China. In 2016, Apple opened
a development office (Growth Market and Mixed Economy, Democracy, Individual and
Group Groups) in the Apple Maps section of Hyderabad, India. But even after a democratic
political system, cultural differences are clear.

Even if the labor culture of the head office and the Indian office is under great pressure, the
way of working is very different. Indian employees at the Hyderabad Development Center
did not like the conflict when they missed the deadline. Employees in India do not say “no”
to employees in the US, but they can always make excuses if they are not in time. Unlike the
United States, if an employee thinks that he or she cannot achieve the goal within a certain
period of time, the employee refuses or requests additional resources. When Foxconn
(Apple's largest Chinese OEM) decided to invest in a factory near Mumbai, India, another
development of tripartite policy and economic culture emerged. After searching for multiple
locations and political influences, Foxconn determined the current strategic location. Apple
now needs to deal with manufacturing plants and graphics and development centers, which
will change the overall dynamics. As the economies of various countries increase, per capita
income and GDP increase, which helps increase purchasing power. Currently, Apple is
dedicated to high-end customers. At least in the near future, the model of acquisition in
developed countries will not change, but this model may soon change to developing
countries. Depending on the country in which Apple headquarters interacts, the impact of
political, economic, and cultural systems may change, but all of this is equally important.

Different type of trade theories in information and technology industry

Apple belongs to the ICT industry and combines music, pharmaceuticals, mobile payments
and accessory manufacturing. In the course, Apple uses different business theories
depending on the situation and competition. Historically, Apple has used absolute
advantage theory in the design and development of US products. If a company produces a
country that is more efficient than other countries, the company will benefit. The previous
days of Apple, Apple had an absolute advantage in product design and development due to
limited technical knowledge and the best resources of Silicon Valley. Since each country has
a conscious focus on producing and purchasing products that are less productive than other
countries, Apple has applied comparative advantage over time. The theory of comparative
advantage believes that trade is a positive game and that all countries where the trade
participates can gain economic benefits. As Chinese companies became product
manufacturing experts, Apple began investing in these areas to obtain high quality products
for efficient production. Hackescher Olin's theory is based on universal donations. To what
extent does the country have resources such as land, labor and capital? In this theory,
countries export products that use intensive regional value factors and import products that
use very rare factors in the region. Recognizing the potential of the Indian market and well-
trained IT engineers, Apple invested in an Indian development center to increase its
relatively cheap workforce and get a good job. In addition, Apple has increased foreign direct
investment in Chinese companies to improve manufacturing processes and increase human
capital. Apple also applied product lifecycle theory. Because of its wealth and scale, the US
market. Provides strong incentives to develop new consumer products for companies. In
addition, rising labor costs in the US are driving companies to develop innovations in a cost-
saving process. As the US and other advanced markets mature, new products become
standardized and pricing becomes a competitive threat. As a result, global production bases
first moved from the United States to other developed countries, and then moved from
these countries to developing countries such as India, Singapore, and Brazil. New trade
theory shows that economies of scale reduce unit costs of large-scale production. Apple
began applying new business theories, allocating large fixed costs and gaining large-scale
production capacity through China's professional labor and machinery. Apple's new business
theory helps to achieve economies of scale, increase the variety of products available to
consumers, and reduce average costs.

Foreign direct investment and apple

The payment model is a more similar theory in the ICT industry. Dunning's selection model
has accepted internationalization theory arguments that it is difficult for companies to
acquire their own skills and knowledge. Therefore, in addition to company-specific functions,
site-specific assets or available resources often require FDI. Apple has a very careful culture,
and you need to manage high-quality products at the highest level. For the above reasons,
Apple has not licensed products through foreign companies. Instead, Apple uses talented
people to design and develop products in Silicon Valley. Because there are many talented
engineers in the region, Apple needs to leverage the knowledge and experience of the
community to innovate the design and development process. In order to achieve economies
of scale, Apple is unable to produce American products. Due to the high labor costs,
exporting them becomes more expensive. As a result, Apple searched many cheap and
professional websites. When Apple started foreign direct investment in China to achieve
economies of scale, Samsung began foreign direct investment in similar areas. In recent
years, Apple and Samsung (one of the biggest competitors) have occupied o divination arch
occupation and have sought another advantage of foreign direct investment. You can easily
transfer the product into the aspect because the value is high, because of the increase in
trade-this is very convenient for everyone. As a result, Apple has established a production
base in China and has now moved to India. India can take advantage of Apple's potential.
International trade and foreign direct investment

International trade and foreign direct investment often complement each other. Trade is the
export of the host country and other countries in the world that import these goods. Foreign
direct investment export options are replaced by domestic sales in the country in which the
investment was made, but foreign investment may create greater competition in the foreign
market. High levels of competition will also benefit from exports from the same country that
invests abroad. In the manufacturing industry such as technology, foreign investment may
“increase exports of manufacturing industry”. Furthermore, there is evidence that there is a
positive correlation between US foreign market investment and US export growth. In
addition, the company's foreign direct investment can facilitate the export and trade of
other companies in the industry, thereby improving and improving the international trade of
the industry.

Evidence of SMST

Simultaneous Multiple Strategic Thrusts (SMST) is a company that achieves global resilience,
innovation, and learning by targeting global coordination and efficiency, country response,
and multiple strategic stakeholders, suppliers, customers, and competitors simultaneously.
The company has SMS evidence, especially through differentiation, cost, innovation, and
partnerships. Apple's biggest competitive advantage is the hardware and software that
controls the product. This means that all Apple products run on the same operating system
and software. Apple's competitive advantage is different from competitors such as Samsung,
who cannot produce products that run on Apple systems and must rely on other vendors.
Apple can also lead innovation by introducing new products that are only available on their
systems. Avoid first competition with regard to product standardization, globalization
strategies need to be coordinated globally through suppliers to maintain relatively low costs.
Apple products are accurately identified in all international markets and suppliers around
the world. This reduces administrative costs and costs. There is no difference or assignment
other than National Variable Energy Guide. However, Apple's profit margin began to decline
in 2016, accounting for 39.1% of net sales compared to 40.1% last year. As sales decline,
companies are experiencing this decline and increasing the disadvantage of fixed costs.
Apple is working with other cheap foreign suppliers to reduce manufacturing costs by
achieving high profit margins at low cost. This allows Apple to compete with foreign
competitors for the price and lose market share while maintaining high profits. Low sales
and sales of low-priced smartphones in emerging markets, strong demand for cutting-edge
smartphones, China's medium-term industry, and strong brand prices, faster and more
economical to emerging markets to increase consumer capabilities access. One way Apple
smartphones can attack is through foreign direct investment in India. Here, regulations can
be relaxed and R & D centers can provide more suppliers.

Apple and major motivation for alliances

There are many motives for manufacturing alliances and electronics. Apple did something to
increase service sector revenue. This is the fastest growing 22% in 2016. Some of these
partnerships include working with Apple Pay credit card companies to allow customers to
make calls using their credit cards. Apple will also work with wireless carriers to become a
third-party provider of devices. Finally, Apple can collaborate with application developers
through developer program membership, allowing developers to create applications for
Apple's operating system by providing access to a close link between beta software and
advanced application features will do so. Only Apple products are available. The former
alliance helped Apple strengthen its ability to differentiate products with innovative
technologies that apply only to the operating system, including numerous applications and
Apple Pay. Other partnerships focus on costs. Apple will open another R & D center in
Shenzhen, China. The center includes several technology manufacturers that can supply
Apple parts at low cost and invest directly in China.

Apple's main international strategy

Apple's differentiated strategy is its main international strategy, providing high value to its
customers through its innovative brands in foreign markets. By helping this strategy, the
organization has developed a strong market share in foreign markets. Apple uses this
strategy to cross national borders. There are several reasons for using differentiation as an
international strategy. They can be analyzed as follows: Widely accepted: Apple products
such as iPod, iPad, iPhone, iTunes, etc., have been widely accepted by international
destination markets, reflecting the fact that differentiation using the strategy is an important
international strategy. Brand Value: Apple's superior strategy also provides corporate brand
value by establishing a stronger position in the foreign market than its competitors.
Competitive advantage: Apple's differentiation strategy also provides a competitive
advantage for the company. With this competitive advantage, Apple has solved the
challenges and problems faced by its competitors, such as Dell Computer, Google, Research
in Motion and Microsoft in foreign markets. Low tradition: Competition from competing
companies is also low in adopting a differentiation strategy. In addition, like internal
competition and employee skills, Apple is developing innovative products that competitors
are not easy to imitate in foreign markets.

Strengths, opportunities and recommendations.

Apple is a leader in this field and has demonstrated its strength, but it also has weaknesses
in its global strategy and how to deal with future growth. Standardization is one of Apple's
greatest strengths. At the end of 2016, the 78.4 million iPhone 7 and 7 Plus sold were almost
the same. If Apple determines that “a good place to share something from different
cultures” or “no need to customize the product if everyone has something in common,”
there is no difference. Apple is still a leader in smartphone sales. With a unified design, all
Apple products quickly implement new versions of the device on a global scale and increase
the chances of success by carefully identifying the countries to enter. Apple's reputation and
international brand recognition are other benefits. World-renowned Ribrac ratings indicate
that Apple has been declining in recent years, but this year it has been 20 since its first place
in 2011, but still outperforms its rival Samsung. In 2017, it reached 70th place. Apple is
known around the world and continues to protect itself through integrated channels and
integrated distributors, and its products can only be sold at specialty stores or authorized
distributors.

Since Steve Jobs founded the company in the 1970s, innovation has been one of Apple's
agendas and one of its strengths. Critics have recently noted the lack of Apple's product line
and some important updates to existing products, but innovation remains an important
focus. In recent years, Apple has acquired 15-30 startups to support innovation. Companies
acquired in 2016 include Flyby Media, which focuses on augmented reality, and Lean Sprout,
an education technology company. Meanwhile, one of Apple's biggest weaknesses is the
high cost of the product. Its customer base is limited to those who can only purchase higher
iPhone, iPad or Apple Watch devices than most devices around the world. Apple has tried to
produce low-priced products in the past, but the iPhone 5c uses plastic support instead of
regular metal, but most customers now have the final product manufactured at a low price.
And the expected social reduction of the product does not attract economic viewers.
Another weakness of Apple is its small global market share, especially in emerging markets
and pyramids. Apple is of great value, but the percentage of smartphones purchased in the
fourth quarter of 2016 was 81.7% (compared to 17.7% of smartphones using Apple IOS). The
same statistics apply to tablets. Using $ 150 quality Android smartphones in India and other
emerging markets, Apple is trying to find a suitable place in this lucrative industry.
Therefore, Apple needs to do more with general innovations to reduce costs and attract the
bottom of the pyramid.

Here are three of Apple's strategic recommendations: This comes from previous information
on foreign direct investment, cultural perceptions, innovation practices and current global
strategies as well as company strengths and weaknesses.

Continue to expand internationally. In addition to analyzing the smallest domestic

Start global marketing targeting: Apple should be aware that while their products may be
standardized, marketing should focus on the local market. One way to improve access to
various international markets is to use direct marketing instead of translating large
advertising campaigns. Apple has begun this process, as evidenced by recent changes in
third-party advertising agencies and a series of 15 YouTube ads `` One Night '' that introduce
various cities around the world through iPhone cameras is.
https://www.youtube.com/watch?v=a7qO3bNcfzU&ab_channel=apfelspot

Developing new products for the world: Apple may not be able to communicate with all
emerging markets, but there are good reasons to focus on the wider international market.
The next Apple Innovation Group is Apple Car. Since previous attempts to create a “global
car” have failed, Apple should learn about current cultural contexts like India above. You
may be able to find the right balance with the standard products as before, but you need to
understand how the iPhone 5S works when integrating the product with the state. Apple's
foreign direct investment approach should continue and Apple's most unique cultural stores
are open to the world.

These recommendations all stem from knowing that Apple continues to use common
strategies like standardized products and innovative thinking with impressive results. These
recommendations allow them to move forward on a global level and also to adapt to the
cultural, economic and political roadblocks they will face.