Running Head: EFFECTS OF MARKET GLOBALIZATION ON APPLE INC 1

Market Globalization

Name

Institution
EFFECTS OF MARKET GLOBALIZATION ON APPLE INC 2

Executive summary

The 21st century is marked by a revolution in commerce, trade and technological advancements’

that has turned the globe into a village market. Most importantly, the tremendous creativity and

innovation experienced in all sectors of the economy have significantly simplified production,

commerce, marketing, distribution, and management. There is an array of activities that depend

on technology in enhancing market globalization and became possible after the intensification to

innovation. With technology, both the internal and external environment significantly affects

how the processes are programmed, coordination of financial and human resources, management

of human resources imperatives and more at Apple. However, the management of various

organizations has unearthed the essentiality of relying on creativity and innovation in while

pursuing a global trade. Through the utilization of technology indeed, Apple have managed to

overcome various hindrances. In this report, effects of market globalization on Apple Inc has

been expounded and different challenges, and it has faced explicitly discussed and further,

possible solutions to address them is given. Some of the recommendations that can be embraced

to promote globalization by companies include total incorporation of technology in processes,

cultural study, supporting innovative and entrepreneurship culture, continuous product

developments and maximizing the strengths and opportunities.

Table of Contents
Executive summary.........................................................................................................................2

1. Introduction..............................................................................................................................4

2. Definition of terms...................................................................................................................5

2.1Globalization...........................................................................................................................5

2.2. Innovation.........................................................................................................................5

2.3. Culture...............................................................................................................................6

3. Effects of globalization on Apple.............................................................................................6

4. National contextual factors that impact on Apple....................................................................7

5. International contextual factors................................................................................................8

6. Conclusion and recommendations............................................................................................9

7. References..............................................................................................................................10
EFFECTS OF MARKET GLOBALIZATION ON APPLE INC 4

1. 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
EFFECTS OF MARKET GLOBALIZATION ON APPLE INC 5

identified, and an implicit explanation is given about how they influence the success of Apple

locally as well as internationally.

2. Definition of terms

2.1Globalization

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).

2.2. 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
EFFECTS OF MARKET GLOBALIZATION ON APPLE INC 6

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).

2.3. 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.

3. 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,
EFFECTS OF MARKET GLOBALIZATION ON APPLE INC 7

and phones that have unique features. To realize this, Apple has greatly invested in research and

development to unfold more in the field of technology (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 Apple’s resources and profit maximization. It has accessed to the best

human resources globally. Also, it has spent substantial amount of capital to enhance 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.

4. 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).

5. 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
EFFECTS OF MARKET GLOBALIZATION ON APPLE INC 9

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.

6. 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,
EFFECTS OF MARKET GLOBALIZATION ON APPLE INC 10

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.

7. References

Apple (2012). Apple’s 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). The Apple connection: Globalization and outsourcing. Toward Freedom.

Retrieved from http://www.towardfreedom.com/globalism/2713-the-apple-connection-

globalization-andoutsourcing

Christensen, C. and Raynor, M. (2013). The Innovator’s Solution: Creating and sustaining

successful growth. Harvard Business School Press: Boston, Mass. pp. 250- 300

Colvin, G. (2009). The World's Most Admired Companies: Fortune. 159(5), p. 76. Retrieved on

Feb 5, 2017 from http://money.cnn.com/magazines/fortune/mostadmired/2009/full_list/

DeWitt, P, E. (2013). Has China Mobile quietly begun taking pre-orders for Apple iPhones?

CNN Money: Retrieved from http://tech.fortune.cnn.com/2013/12/02/applechina-

mobile-suzhou/

Haviland, W. A., McBride, B., Prins, H.E.L., & Walrath, D. (2011). Cultural Anthropology: The

Human Challenge. Cengage Learning, p. 578

Helft, M. and Vance, A. (2011).Apple Passes Microsoft as No.1in Tech, The New York Times,
retrieved on July 31, 2011 from http://www.nytimes.com/2010/05/27/technology/27apple.html

James, P. & Szeman, I. (2010). Globalization and Culture, Vol. 3: Global-Local Consumption.

London: Sage Publications.

Jeffrey W. Alstete, & John P. M. (2012). Intelligence Methods and Systems Advancements for
EFFECTS OF MARKET GLOBALIZATION ON APPLE INC 12

Knowledge Based Business, p. 132-148

Leach, M. (2010). Dynamic Sustainability Technology, environment, social justice. London:

Earthscan Ltd. Retrieved from https://books.google.co.ke/books?

id=03PkC_FdZzYC&pg=PA174&lpg=PA174&dq=Le ach,+M.+(2010).

+Dynamic+Sustainability+Technology,+environment,+social+justice.+

London:Earthscan+Ltd.&source=bl&ots=xtAh0OoN_t&sig=xJ5xgtJfzH54qxdCuqxi4dc

Leitao, R, P. (2013). Where in the world is Apple’s growth? Post at Eventide. Retrieved from

http://www.postsateventide.com/2013/05/where-in-world-is-apples-growth.html

Linden, G., Kraemer, K. L., & Dedrick, J. (2007). Who captures value in a global innovation

system: the case of Apples iPod. Irvine CA: Personal Computing Industry Center,

retrieved on July 31, 2011 from http://pcic.merage.uci.edu/papers/2007/AppleiPod.pdf

Lommerud, K. E., Meland, F., &Straume, O. R. (2009). Can de-unionization lead to international

Outsourcing? Journal of International Economics

Manfred, B., & Steger, P. J. (2013). Levels of Subjective Globalization: Ideologies

Imaginaries, Ontologies. Perspectives on Global Development and Technology, p. 17-40

Examination of Academically Sourced Inventions. Strategic Management Journal,

28(11), 1155-1166
EFFECTS OF MARKET GLOBALIZATION ON APPLE INC 13

Persson, A. (2008). Strategy antecedents of modes of entry into foreign markets: Journal of

Business Research, 61(2), 132-140

Salvatore, B. (2008). Studying Globalization: Methodological Issues: In George

Ritzer. The Blackwell Companion to Globalization. John Wiley & Sons. p. 146.

Salge, T.O. & Vera, A. (2012) Benefiting from Public Sector Innovation: The Moderating Role

of Customer and Learning Orientation. Public Administration Review, Vol. 72, Issue 4,

pp. 550–60.

Smith, C. (2010) Black Friday: Apple iPad, iPhone & Other Deals Coming to Europe Too?

retrieved on July 31, 2011 from http://nexus404.com/Blog/2010/11/24/black-fridayapple-

ipad iphone-no-details-on-deals-though/

Sohail, N. (2011). Impact of globalization on Apple Inc. Scribd. Retrieved from

http://zh.scribd.com/doc/61951649/Impact-of-Globalization-on-Apple-Inc

Vujakovic, Petra (2010). "How to Measure Globalization: A New Globalization Index (NGI)".

Atlantic Economic Journal. 38 (2) 237