Effects of Market Globalization on Apple Inc

Question: Discuss about theEffects of Market Globalization on Apple Inc. Answer: Introduction Market globalization refers to the process of carrying out business in the international market. However, innovation and entrepreneurship play a key in promoting international trade. It is believed that the upheaval is essential in creating the competitive advantage in companies, particularly Apple Inc (Bello, 2012). The sustaining innovations have aided Apple to maintain customer loyalty, and further provide products that superbly suits customers preferences (Leitao, 2013). Due to the competitive nature of the international markets, Apple has ensured that it offer goods and services of high quality. Moreover, technology has enabled customers to access to various brands of goods (Manfred Steger, 2013). Globalization, therefore, has unquantifiable merits regarding the success and growth Apple Inc has achieved to date. Therefore, this report has customized on the topic of Market globalization, where innovation and entrepreneurship have been given a greater focus because they are requisites for global trade and Apples success. With globalization, Apple has managed to serve most people around the globe. Finally, various regional and international contextual factors have been identified, and an implicit explanation is given about how they influence the success of Apple locally as well as internationally. Definition of Terms Globalization A unified description of globalization refers to the integration in the world in the interchange of culture, ideas, products, and views. The increased pace of globalization increased due to technological breakthrough (Persson, 2008). The enabled interactions and communication between individuals from various spheres result to free flow of products from one place to another without geographical hindrances. Globalization has however, increased the global trade more that States overall economic growth (Vujakovic, 2010). With Globalization, Apple Inc has managed to surpass its close competitors like Microsoft, in the supply of technology related products across the globe (Sohail, 2011). Also, globalization has assisted Apple establish integrated manufacturing design facilities in different locations like Asia, Europe to enhance global networking (Bello, 2012). Innovation It is the creation of new ideas and ways of conducting different processes. It creates new and improved products, materials, services, and processes. Innovation is a requisite for economic developments because of its capability of creating efficiency and simplicity in the ways processes and activities are conducted in a company and market (Christensen and Raynor, 2013). Notably, there is a close relationship between innovation and globalization. It is factual that either needs the other to make it more efficient (James Szeman, 2010). Through innovation, Apple has managed to manufacture hardware and software products that definitely suits customers needs and further differentiate its products (Linden et al., 2007). Culture Culture is described as the beliefs, practices, discourses and norms embedded in the people (Haviland et al., 2011). It, however, influences the way individuals behave in particular setups. It is believed that a producer of a product can only provide products that match customers culture, contrary to which failure is inevitable. Apparently, operating in the international markets is characterized by interaction with clients from different cultural backgrounds. To survive, the marketers of Apple have appreciated cultural diversity and position their products to align influences of culture. Effects of Globalization on Apple Being a leader in the field of creativity and innovation requires a lot of investment in workforce and also the acquisition of latest machines to be used in the production. Apparently, globalization has enabled Apple Inc market command a large market share in America, Europe, and Asia. Its products are traded globally. Apple's exceptional strategies that utilize the outsourcing have significantly assisted it to achieve unquantifiable success to remain the leader in offering quality products to customers. Internationalization has positively affected Apple in various ways. Firstly, globalization has affected Apple business strategy. With the extended market and demands for Apple products, it has customized in the application of differentiation strategy (Atkinson, 2012). Here is where Apple has led in the production of software, electronics, and phones that have unique features. To realize this, Apple has greatly invested in research and development to unfold more in the field of techno logy (Colvin, 2009). Secondly, globalization has affected the operational and employment practices of Apple. With the ability to access every part of the market, Apple has managed to outsource production plants in various parts of the world (Leach, 2010). As a result, it has succeeded to manufacture products and launch them in the new markets (Apple, 2012). Regarding employment, it has managed to attract committed, talented, innovative and experienced individuals across the world. Thirdly, globalization has affected the product and services provided. It is because the international markets indeed require quality products and services. Through the partnership with several producers at the international level, Apple has utilized outsourcing strategy to subcontract some suppliers to supply some components (Jeffrey John, 2012). Lastly, globalization affected Apples resources and profit maximization. It has accessed to the best human resources globally. Also, it has spent substantial amount of capital to enh ance the acquisition of capital and other factors of production. Further, the strategy of going globally has significantly increased the market share of Apple, hence making Apple maximize its profits. National Contextual Factors that Impact on Apple At the national level, Apple is affected by various factors. However, the challenges faced at the local level to a well-established company are usually at the management and financial level. Though, the presence of technology has enhanced the coordination and automation of process and various activities are executed by one machine (DeWitt, 2013). Some of the local influences on Apple include: Political stability: The firm cannot experience any success when there is political instability in the country. Apparently, commerce thrives well where there is peaceful coexistence between everyone in the society and innovation as well as entrepreneurship is promoted. Infrastructural developments: At the local level infrastructural developments and particularly transport and telecommunications significantly affects the flourishing of firms, innovation and entrepreneurial activities (Salge Vera, 2012). Transports facilitate the movement of people and materials from one place to another, whereas the telecommunication services enhance the sharing of ideas and dissemination of information. Government regulations: Unfavorable business policies can hamper success, and the contrary is true. Notably, entrepreneurship and innovation at Apple are experienced through the success it derive from the simplification of processes. Apple plays a pivotal role in employing the new ideas by incorporating the technology in its processes for success through the production of quality products to consumers (Helft and Vance, 2011). International Contextual Factors Some of the Challenges that Hinder Globalization as Described as follows: Economic factor: This aspect includes an array of determinants like the pace of development, labor conditions, cost of the factors of production, inflation, and more. Innovation and entrepreneurship has assisted Apple to maximize profit during favorable situations and appropriately prepare how to manage some economic problems (Smith, 2010). Apple needs to enact effective strategies to survive hard economic conditions. And it is only through technology that the company can cut some incremental costs, de-invest from unprofitable ventures and keep productive employees (Lommerud et al., 2009). Cultural factors: The international operations are indeed affected by cultural beliefs. From the previous definition of culture, we derive the assumption that Apples misunderstanding about people's beliefs can influence the level of demand for the products offered (James Szeman, 2010). Innovation, therefore, aids in discovering all forces surrounding cultural beliefs and norms of people to ensure that services and outputs provided match cultural demands. Respect for cultural diversity is paramount. Legal factors: Every country has different rules regarding employee rewarding systems, tax laws, ownerships rights, business registration processes. Discriminative laws hinder business success, and the vice versa is true. With technology in place, Apple can utilize various analytical tools to assess legal effects of a particular country before extending the operations to such areas. Conclusion and Recommendations In conclusion, Globalization plays a vital role in contributing to economic developments in many countries. It has enabled businesses access international markets and offer products to different customers. Apparently, Apple has totally embraced technology which has significantly assisted it gain customer loyalty of providing a variety of quality products. Globalization however, depends on the level of innovation and technological advancements. For instance, the technological break-through has simplified the payment methods, products can be marketed and transactions executed online. E-commerce has been embraced, and the level of quality is no longer a subject to worry. As a result, the competitive edge of a company is perfected to allow it compete favorably in the international markets. Despite the existence of different challenges, Apple Inc have relied on technology to ensure appropriate strategies are enacted to enhance success as well as providing the best to the consumers. To ensure that Apple succeed in the fluid business environment both at the local and internal levels, the report has strongly recommended the following: Expose marketers to further training to assist get a comprehensive understanding about culture and how they should position the products to suit everyone in the market. Use business analysis tools like PESTLE, Porters five forces to examine the local and international markets before making an investment. To ensure that its outsourcing parties comply with ethical rules and regulations in the most of the world. The management to ensure that the firm is always the leader in developmental issues in the society. References Apple (2012). Apples official Webpage. Retrieved from www.apple.com Atkinson, R. (2012). The impact of international technology transfers on American research and Development: Committee on Science, Space, and Technology, p.1-61 Bello, W. (2012). 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