Apple Business Strategy - Essay

Topics: Apple Inc., Gross domestic product, Economic growth Pages: 20 (7222 words) Published: November 25, 2010

Business Strategy
Objective: To develop a market demand for Apple products in developing countries to insure the longevity of the Apple brand. Overview
Apple inc. is a Multinational Corporation operating in 97 countries worldwide. It offers an array of products from computers to televisions to software. Apple is revered as a leader in innovative products that are both user friendly and ascetically pleasing.

In the market of computers today, Mac and PC are more similar then anything in terms of hardware. The memory in a MacBook Pro is almost identical to a comparable PC laptop. So where is the line that draws users to PC or Mac? The obvious difference is the OS or Operating System. Most desktop PC’s run on Windows OS while Apple has its own Mac OS. Bearing this in mind we dug deeper into the subject.

Due to the fact that Apple already has a broad span of users in all parts of the world, we wanted to find out why it is that consumers here in the U.S. choose PC over Apple. We asked ourselves why do we choose PC? The consensus was two things; price and custom.

We wanted to draw a higher demand for Mac computers without sacrificing profit.(IE price) What we are left with is custom. We concluded that the consumers are accustomed to their respective OS. Most corporations, schools, and government facilities here in the U.S. use PC’s and people are simply drawn to PC because they are used to the interface. Bearing this in mind Apple is still able to draw in record profits in laptop sales. We view this analysis as an opportunity rather than a limitation to the Apple Corporation. We approached this parody with one question in mind; how can we predispose people to use MAC OS? CHINA

Some of the reasons of why to do business with China include: Improved international relations, government reforms, an expanding economy and increased foreign investment. It is necessary that those doing business in China learn about areas such business culture, business etiquette, meeting protocol and negotiation techniques in order to maximize the potential of their business. Another important factor is that China is the largest country in term of population with a growing number of consumers and the fourth leading country in terms of size in the world. They have been supported by the World Trade Organization (WTO) since 2001, which has allowed China to open up business with foreign nations. The Summer Olympic Games in 2008 also has helped Chinese companies go global, which are now taking over major multinationals. In 2008, China was the top reformer in East Asia as a result of effective reforms in several cities and good practice. This range of reforms facilitated the easiness of doing business in China, particularly in the coastal regions and provided the local policy makers with powerful tools to build their private sector thus attracting higher levels of investment. These reforms along with the low labor costs make China an attractive location for outsourcing and foreign direct investment. Foreign companies view China as a huge, almost niche market with an immense potential to grow, where profit margins are big enough to earn a reasonable return. Swift economic growth is bringing a wide variety of goods to middle and lower income segments, which are the 90% of China's entire consumer goods market.

China's real GDP growth indicated an average real growth of 10.6% from 2002 to 2007, while in 2007 only reached 11.4%, which is roughly 2% lower than Germany's GDP and ranks China as the fourth economy in the world. Although forecasts estimate real GDP growth to decelerate from 9.8% in 2008 to 8.2% in 2013, the figure is impressive considering that the domestic demand will be boosted due to a strong wage growth. China's gross domestic product per capita is estimated to $6,000 per year by 2010, equivalent to $24,000 when adjusted for purchasing power parity, which qualifies Chinese households as middle class by U.S....
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