Business Analysis- International Strategy and Competitive Advantages for Global Company Apple Essay Example
Introduction
According to Iliev et al (2004, p. 133), Apple Inc. was selling its products exclusively in America, initially. Nowadays, Apple has expanded significantly beyond domestic market. Apple has so far succeeded to become a multinational organization, selling products and resourcing law materials globally. To minimize the impact of the existing rivalry in the PC industry at the global edge and to maintain competitive advantage, Apple applies non-competition strategies, (Yoffie, 2004). This section examines the strategies adopted Apple Inc to penetrate and to manage rivalry in the global market. Further, this part looks into the competitive advantages of Apple Inc, which enable it to maintain competitive edge In the PC industry globally. In addition, paper briefly highlights the benefits and shortcomings of the strategies adopted by Apple Inc, giving potential solutions and strategies based on the available data.
International strategy
According to Iliev et al (2004, p. 133), Apple Inc. uses a combination of product development and product proliferation strategies to achieve and maintain its international competitiveness. Iliev et al notes that, product proliferation strategy is similar to the approaches used in creating barriers to entry. In such an approach, if new niches develop, the leader in a given industry benefits most. For example, Apple got the first mover advantage in the digital music market where it was the first company to provide online music through iTunes and the iPod. The other companies in the industry started to move into the niche, competition was raised and rivalry decreased
Product development on the other hand refers to the process of innovation of new or better products so as to replace the old ones. Apple has managed to lead in the PC industry in innovation and design hence, it has been able to exploit available opportunities and to gain significant market share in the international market. For example, in 2002 and 2003, iTunes
According to Iliev et al (2004, p. 133), Apple Inc. was selling its products exclusively in America, initially. Nowadays, Apple has expanded significantly beyond domestic market. Apple has so far succeeded to become a multinational organization, selling products and resourcing law materials globally. To minimize the impact of the existing rivalry in the PC industry at the global edge and to maintain competitive advantage, Apple applies non-competition strategies, (Yoffie, 2004). This section examines the strategies adopted Apple Inc to penetrate and to manage rivalry in the global market. Further, this part looks into the competitive advantages of Apple Inc, which enable it to maintain competitive edge In the PC industry globally. In addition, paper briefly highlights the benefits and shortcomings of the strategies adopted by Apple Inc, giving potential solutions and strategies based on the available data.
International strategy
According to Iliev et al (2004, p. 133), Apple Inc. uses a combination of product development and product proliferation strategies to achieve and maintain its international competitiveness. Iliev et al notes that, product proliferation strategy is similar to the approaches used in creating barriers to entry. In such an approach, if new niches develop, the leader in a given industry benefits most. For example, Apple got the first mover advantage in the digital music market where it was the first company to provide online music through iTunes and the iPod. The other companies in the industry started to move into the niche, competition was raised and rivalry decreased
Product development on the other hand refers to the process of innovation of new or better products so as to replace the old ones. Apple has managed to lead in the PC industry in innovation and design hence, it has been able to exploit available opportunities and to gain significant market share in the international market. For example, in 2002 and 2003, iTunes