International business environment of Apple Inc
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Globalisation describes the mobility of goods, services, labour, technology and capital throughout the world. All those around the globe are more connected to each other than ever before. The benefits of globalisation allow information and money flow more quickly. Another advantage is that goods and services can be produced in one part of the world which is increasingly available in all parts of the world. International travel is also frequent than anything else and the communication is also common place. Apple Inc has increased dramatically as an international business.
One of the ways in which Apple have used globalisation is by providing iTunes. A large variety of songs are available on iTunes and because the business has offered this on the internet and as software has increased their sales internationally as it has become accessible internationally. The products that Apple provides are sold internationally. Stores exist all over the world, allowing the business to become an international company. Not only does the use of stores help Apple to become an international company but the use of the internet also allows this to occur. Any product can be shipped from the business to where a customer is.
Payment is made through the internet, which allows their global economy as transactions can take place instantly. The manufacturing of apple products is made in China. This is how international companies such as Apple operate. Other countries are involved with the production of the company’s products. This benefits the business in many ways as it the most cost effective way according to the business to manufacture their products. As the growing markets have increased for apple, China has been able to modernise their living standards by the trade between Apple Inc. Competition
The international competitiveness refers to the ability of a business being able to provide goods and services that offer at better value than of its oversea rivals. Any business operating internationally will want to compete successfully and sustain improvements in output and wealth. The apple business, looking at the success over the past few years has demonstrated this, after selling 150 million iPods in 2008 alongside many other achievements such as the iPhone. The competition that Apple has is extremely high as they are competing internationally with other companies such as Sony who also provide mp3s and computers/ laptops.
Not only will Sony and other manufacturers working in the same field be of great competition concern but also companies such as Windows who operate computer systems. To increase the competition even more Apple have recently launched the iPhone which now has competition with all leading mobile manufactures such as: 1. Nokia 2. Lg 3. Sony Ericsson 4. Samsung 5. Motorola There is a competitive advantage on an international scale. However there are threats from foreign competition, which is why Apple are introducing products such as the iPhone. This is a new concept to the business as they only sold and manufactured iPods and computers/ laptops.
To stabilise their competition Apple decided try a new product to launch worldwide. The business has also tried introducing their technology providing newer and updated versions of their products and also providing new designs. What makes Apple sell the most is the design of their products and the name that the business has made for themselves internationally. Reasons why the iPhone, iPods and laptops are successful is because the business has incorporated the latest technologies. Since the iPhone has been released many businesses are attempting to keep up with the similar technologies of the iPhone.
For example Lg have introduced the KM900 which looks very similar to the iPhone. This has increased the competition environment for Apple. In response to this the business has launched an even updated version of the iPhone – the iPhone 3g S. Multinational corporations Multinational Corporation is referred to a corporation that manages production or delivers services in more than one country. Apple Inc is an American multinational corporation. The reason for this is because the business operations take place in more than one country however it is managed in America (California) itself.
Economics of scale The economics of scale is defined as “in production of cost per unit made declines with the number of units produced. ” Relating this definition to the Apple Inc business it would mean that if Apple produces a large amount of products due to the high demand, it would be expected that the production of cost will be reduced i. e. it will cost less to produce the goods because a high number of goods are required. Foreign investment Foreign investment refers to an international business such as Apple Inc investing finance from other countries.
Apple Inc does not sell products in only America but globally. Because the business sells on such a large scale results to the business receiving investments. The investment can be physical investment such as assets being in another country. The definition of this however can be extended to include lasting interests in enterprises that operate outside of the economy of the investor. In terms of Apple Inc having a foreign investment would be offices and premises in many other countries. Having such assets is a foreign investment. Developing countries
The developing countries allows trade and provides a large amount of contribution for the Apple business. These developing countries such as Japan and China allow Apple to make the products with the best resources. The country being developed will mean that there are large amount of educated people who will be able to increase the technology of the products which is what the company aims to do. The business will only sell its products if they are able to increase the technology each time releasing a new product. The social factors of the business are to increase the technology as time goes.
People want to see products that are new, and if a business is not offering them with those products the business will decline. The latest product that Apple have introduced is the iPhone. This would have only been possible because of the developing countries such as China. Vast amounts resources have been used in order to design such a product. Developing countries do not only have an impact on the technology of the products but also with the labour costs. Manufacturing products in America will be much more expensive than manufacturing it in another developing country as costs can be lower.