Market Research & Strategic Analysis: Apple Case in China

Topics: Apple Inc., Steve Jobs, Apple Store Pages: 16 (5479 words) Published: June 18, 2013
APPLE IN CHINA
GAIN THE POWER BACK

Table of Contents
EXECUTIVE SUMMARY3
A. ANALYSIS4
I. Strategic Issue4
II. Analyze the Apple situation4
1. Student slave Labor: Chinese students forced to 'intern' at iPhone factory.4
2. Warranty Scandal: Worse Warranty policy to China compare to other countries5
3. Underdeveloped infrastructure: only 8 retail stores5
4. Competition facts6
5. Other facts: The relationship between China and USA7
6. Conclusion about Apple strategic issue7
7. Information gaps:7
IV. Position the company in the context of the issue9
1. SWOT Analysis of Apple in China9
2. A PESTEL Analysis of Apple in China9
V. Identify and Map the actors10
B. AUTOMIZED SCANNING PROCESS – KEY INTELLIGENCE TOPICS11
C. ACTION PLAN13
I. Strategy13
1. Build close relationship with Government, policy makers, local authorities and regulators13
2. Be friendly and transparent with key Chinese media13
3. Reinforce Brand Image13
II. Operational actions Tackle Apple’s issues in China13
1. Tackle guarantee issue13
2. Tackle the labor issue14
3. Tackle the infrastructure issue15
4. Reinforce Brand Image15
III. Communication Strategy16
1. Key messages for Apple:16
2. Communication plan16
CONCLUSION18
REFERENCE19

EXECUTIVE SUMMARY

Apple started off as “Apple Computer” by Steve Jobs and Steve Wozniak. It has experienced a strong brand, rapid growth and high profit in the smart-phone and tablet market worldwide. By 2010, the company viewed itself as a “mobile device company”. Throughout time, Apple has witnessed changes in management and differences of opinion together with missed opportunities, and has sadly lost its competitive advantage to some other competitors like Microsoft, Dell, and Gateway. Apple continues to work on providing innovative products for its customers. Reaching its mission of penetrating and winning the world market of tablet and smart-phone, Apple launched its products in China in 2009. Recently, Apple has been criticized by Chinese government and media regarding three main issues, including slave labors, guarantee scandals, and underdeveloped infrastructure. This assignment is to begin with an outlook onto the strategic issues that need solving. The next part of the report goes further into an intensive analysis of the situation Apple has confronted in China. To make clear the three issues, the first thing to do is to look out for information needs that are essential for the clear formulation of the problems. From that, proper tools were applied to foster the scanning process in order to find out pertinent evidence which will answer the hypotheses set by the groups. Looking deep into the situation, more has been revealed behind the truth. In this process, some information gaps have also been revealed. Thanks to the research, it has been concluded that Apple was under great pressure from media and Chinese governments which aim at exaggerating the negative sides of the issue. Effort was also put to find out information about competition as well as other aspects related to the government policies and media, etc. Then, the report aims at positioning the Apple company, using the SWOT analysis and PESTEL analysis of Apple in China related to the issue. These pieces of analytical information were of great help to the group in finding how the company can use its internal and external resources to adapt and reinforce its position in the context of its scandals in China. A further important aspect of the case study is to identify Apple’s stakeholders in China and position them, using the Perceptual Mapping. After that, implications have been drawn as to which stakeholders Apple should focus its efforts on to deal with the rooted issues. In the next part, the report summarizes the scanning process used by Apple to identify problems, information needs, collect, analyze and communicate information. This scanning process will provide...
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