GROUP PROJECT REPORT

INTERNATIONAL BUSINESS PBS3233

PREPARED FOR:
RAHILA ABU BAKAR

PREPARED BY:

NAME STUDENT ID

NURAMIRA LIYANA BINTI MOHAMMAD BGJ210210210

NADZARI

NUR FATIN MAISARAH BINTI MUSFAIZAL BGJ210210286

SITI NURAISYAH BINTI SHAHABUDDIN BGJ210210498

ZEDAYADISTA BT YAKUB BGJ210210289

SECTION :
AB6.39
Abstract

The current paper intends to analyze Apple Inc. company which has maintained its status as the
world's most valuable brand, beating out other well-known brands such as Coca-Cola, Google,
Samsung and Facebook. Despite widespread technological development and erce competition,
the company's products and services have grown in popularity and are now recognized as
industry trailblazers. The focus of this paper is analyzing internationalization marketing strategy
along with challenges. There is no doubt that even the most successful companies in the world
like Apple have been facing immense challenges and obstacles in the process of their
internationalization besides their achievements and successes. In this study, the goal was to
enlighten some of the main challenges and successes that the American multinational
company faced in its lifetime with a close look at its internationalization strategy in China and
India. While the company has gained tremendous successes and achievements through its
brand consistency, unique product announcements, innovative localizing approaches in
international markets, and premium products and services, this study revealed some of the
main challenges that Apple still faces in its main foreign markets China and India. While the
study applauds Apple's successes but meanwhile it suggests the company to overcome the
mentioned challenges by more market segmentation, localizing the products and services as
per the needs of each market, increasing supervision and assessments on its local suppliers to
solve its international supply chain management problems and more diversification and
innovative approaches to keep its presence strong in international markets particularly in India
and China.Keywords: internationalization, challenges, marketing strategy, market.

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Introduction

Apple Inc. is a company that designs, manufactures and markets mobile communication and
media devices, personal computers, and portable digital music players. Apple Inc. also sells a
variety of related software, services, peripherals, networking solutions, third-party digital content
and applications. The company sells products and services such as iPhone , iPad , Mac , iPod ,
Apple TV , a portfolio of consumer and professional software applications, the iOS and Mac OS
X operating systems, iCloud , and a variety of accessory, service and support offerings.
Furthermore, the company also sells and delivers digital content and applications through online
stores the iTunes Store, App Store, iBookstore, and Mac App Store. The company sells its
products globally through its retail stores, online stores, direct sales force, through third-party
cellular network carriers, wholesalers, retailers, and value-added resellers. Not only that, the
company sells a variety of third-party iPhone, iPad, Mac and iPod compatible products. The
company’s target market is end user consumers, small and mid-sized businesses (“SMB”), and
education, enterprise and government customers.

Steve Jobs, Ron Wayne and Steve Wozniak were the founders of Apple Inc. In 1976, they
invented the first Apple computer which consists of not only circuit boards with costs under $700
in Palo Alto, California.

They improved the first Apple computer by adding a one-megahertz processor and named
Apple II became the first mass-produced computer in 1977.Apple officially became a public
traded company in 1980. Apple Inc. continued developing a better computer in later years and
the first personal computer with a feature which has a mouse for navigating and desktop icons
and folders called Lisa but this product was unable to stay in the market due to high cost of
production.

In 2007, Apple kicked off the era of the touch screen smartphone with the invention of the first
iPhone. This innovation has made a huge change in the smartphone market because it caught
the attention of the consumers. In 2010, again Apple unveiled the iPad tablet computer and
Apple passed Microsoft as the largest US technology company in terms of market value in May.

In 2011, the co-founder Steve Jobs announced his resignation as Chief Executive Officer of
Apple due to health problems and the Chief Operating Officer, Timothy D. Cook took over his
place as the new Chief Executive Officer of Apple.

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In September 2012, Apple introduced its new iPhone 5 which is the lighter, thinner and more
powerful of its mobile devices. This new product captured the attention of the whole world by
getting a pre-order of 2 million and it is twice as big as the previous iPhone 4S.

The Strategy of International Business

Apple uses standardization,strategy , standardization,strategy is a strategy used by business to

create a consistent brand experience across the globe.With standardized global branding, Apple
treats the whole world as one market and provides the same kind of products and services to
everyone. This strategy allows them to get the most out of their technology and can meet the
varying needs of people in different .There are three important values in Apple's global branding
strategy:

1. The company's values are rooted in its belief that people should be able to rely on
technology to solve their problems.
2. The company has a unique visual style and vocabulary, which is reflected in its product
design and advertising.
3. The company's goal is to create a connection with its customers that is deep and
meaningful. This can be done through the creation of trust and the introduction of new
products.

Through Steve Jobs' vision and the company's technological breakthroughs, Apple has been
able to expand and market itself globally. Nowadays, Apple devices can be found all over the
world.The company's global marketing strategy is based on four pillars:

● Wide acceptance of the products introduced by Apple globally reflects the company's
major international strategy i.e. iPod, iPad, iPhone, iTunes etc.
● Brand value is gained by being able to establish a strong presence in the overseas
market.
● The competitive advantage that Apple Inc enjoys through its differentiation strategy
allows it to take on the challenges posed by its rival firms in the overseas market.
● Low imitation, as through its differentiated strategy, Apple Inc has been able to create
products that are not only superior to those of its competitors but that also require the
company's employees to develop innovative ideas.

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Entry strategy

3.1 Which market do they enter?

Apple Inc uses differentiation strategy to enter a market by inserting unique features and design
into the development of their product to attract potential customers and enhance their market
position at the same time.

Apple Inc. operates in multiple markets and industries. Apple Inc. is absolutely favorable . Here
are some of the key markets in which Apple has a significant presence:

1. Consumer Electronics: Apple is primarily known for its consumer electronics products,
including the iPhone, iPad, Mac computers, Apple Watch, and Apple TV. These products cater
to consumer demands for smartphones, tablets, computers, wearables, and home
entertainment.

2. Software and Services: Apple offers a range of software and services, including its iOS and
macOS operating systems, iCloud storage, the App Store, Apple Music, Apple TV+, Apple
Arcade, Apple Pay, and various productivity and creativity apps. These software and services
complement Apple's hardware offerings and contribute to its ecosystem.

3. Mobile Communications: The iPhone, Apple's flagship product, has established Apple as a
major player in the mobile communications market. Through partnerships with telecom carriers
worldwide, Apple has expanded its reach and entered markets related to mobile network
services.

4. Digital Content: Apple's iTunes Store and Apple Music provide a platform for purchasing and
streaming digital music, movies, TV shows, books, and podcasts. This allows Apple to
participate in the digital content market and provide customers with a comprehensive media
ecosystem.

5. Retail: Apple operates its chain of Apple Stores, which serve as retail outlets for Apple's
products and provide customer support. Apple's retail presence allows the company to engage
directly with customers and offer a unique shopping experience.

6. Enterprise Solutions: Apple has made inroads into the enterprise market by catering to
businesses with products like the iPad Pro, MacBooks, and software solutions such as device
management and collaboration tools. This allows Apple to enter the corporate and professional
market segments.

7. Healthcare and Fitness: With the introduction of features like health tracking and the Apple
Watch's health and fitness capabilities, Apple has entered the healthcare and fitness markets.
Apple's technologies and partnerships aim to empower individuals to monitor and manage their
health and wellness.

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It's worth noting that Apple's market entry can evolve over time as the company introduces new
products, expands its services, and explores emerging technologies. Apple continuously
evaluates market trends and consumer demands to identify new opportunities for growth and
expansion.

3.2 When do they enter the market?

Apple's timing of entry into various markets has varied throughout its history. The company has
demonstrated a combination of early entry into some markets and more calculated or cautious
entry into others. Here are a few examples:

1. Personal Computers: Apple entered the personal computer market relatively early with the
introduction of the Apple II in 1977. This allowed them to establish a presence in the emerging
industry and build a dedicated user base.

2. Music and Entertainment: Apple entered the digital music market with the launch of the iPod
and iTunes in 2001 and 2003, respectively. This timing was strategic, as it capitalized on the
growing demand for portable music players and the emerging trend of digital music
consumption.

3. Smartphones: Apple made a significant impact on the smartphone industry with the
introduction of the iPhone in 2007. While other companies had already entered the smartphone
market, Apple's timing was notable as it brought a highly innovative and user-friendly device that
revolutionized the industry.

4. Wearables: Apple entered the wearable technology market with the launch of the Apple
Watch in 2015. This timing allowed them to leverage their brand and ecosystem to establish a
strong position in the emerging wearables market.

5. Streaming Services: Apple entered the streaming services market with the launch of Apple
Music in 2015. By this time, services like Spotify were already established, but Apple leveraged
its existing customer base and brand recognition to quickly gain market share.

It's important to note that Apple's timing of entry is often influenced by its commitment to
delivering highly polished and refined products. The company typically takes the time to develop
and perfect its offerings before entering a new market segment.

Additionally, Apple's timing of entry is influenced by market conditions, technological

advancements, and competitive landscape. The company carefully assesses the market
potential, evaluates the competitive environment, and considers the readiness of its products
before making strategic decisions on timing.

Ultimately, Apple aims to strike a balance between entering a market early enough to establish a
foothold and entering at a time when its products can make a significant impact and stand out
from the competition.

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3.3 What is their scale of entry ?
Apple Inc. has employed various entry of scale strategies to establish a global presence and
achieve economies of scale. So , it means Apple Inc. has a large scale . These strategies
involve expanding its operations, distribution, and customer base in order to leverage its
resources and increase efficiency. Here are some examples of Apple's entry of scale:

1. Global Manufacturing and Supply Chain: Apple has built a vast and complex global supply
chain network, allowing the company to efficiently manufacture its products at scale. By
partnering with contract manufacturers and suppliers worldwide, Apple can leverage their
expertise, infrastructure, and economies of scale to meet the demand for its products.

2. Retail Expansion: Apple has pursued an aggressive retail expansion strategy with its chain of
Apple Stores. By opening flagship stores in prominent locations around the world, Apple has
established a direct retail presence and created a consistent brand experience. This enables
Apple to scale its sales, build customer loyalty, and gather valuable market insights.

3. Online Sales and Digital Distribution: Apple's online sales platform, including its official
website and digital distribution channels such as the App Store, iTunes Store, and Apple Music,
enables the company to reach a global audience at scale. This approach allows Apple to
efficiently distribute software, services, and digital content to millions of customers worldwide.

4. Strategic Partnerships: Apple has formed strategic partnerships with various companies to
scale its reach and access new markets. For instance, Apple partnered with telecom carriers to
offer subsidized iPhones with service contracts, allowing them to tap into broader customer
bases and increase device sales.

5. Expansion into Emerging Markets: Apple has made efforts to expand its presence in
emerging markets with significant growth potential. By adapting its product offerings, pricing
strategies, and distribution channels to cater to the specific needs and preferences of these
markets, Apple aims to scale its business and tap into new customer segments.

6. Acquisitions and Investments: Apple has made strategic acquisitions and investments in
companies that align with its growth objectives. These acquisitions allow Apple to gain access to
new technologies, talent, and intellectual property that can contribute to scaling its operations
and enhancing its product portfolio.

It's important to note that Apple's entry of scale strategies may vary depending on the specific
market and product category. The company adapts its approach to leverage the strengths of
each market and optimize its operations for maximum efficiency and growth.

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Entry mode

Apple Inc. uses multiple entry modes to establish its presence in various markets around the
world. The specific entry mode chosen by Apple depends on several factors, including the target
market, local regulations, competitive landscape, and strategic objectives. Here are some of the
common entry modes employed by Apple:

1. Direct Sales: Apple often establishes its own retail stores, known as Apple Stores, in many
countries. These stores serve as direct sales channels, allowing Apple to have complete control
over the customer experience and brand presentation.

2. Distribution and Resellers: Apple also partners with local distributors and resellers to expand
its reach in different regions. These partners handle the distribution and sales of Apple products,
such as authorized resellers, telecom carriers, and electronics retailers.

3. Online Sales: Apple has a strong online presence and sells its products through its official
website. This mode allows customers to directly purchase Apple products online, providing
convenience and accessibility.

4. Partnerships and Alliances: In some cases, Apple forms strategic partnerships or alliances
with other companies to gain market access or enhance its offerings. For example, Apple
partnered with major telecom carriers to offer iPhones with subsidized contracts.

5. Licensing and Manufacturing: Apple engages in licensing agreements with manufacturers to

produce its products. This approach enables Apple to leverage the manufacturing capabilities
and expertise of partner companies while maintaining control over design, quality, and brand
image.

It's important to note that Apple's entry modes may vary depending on the specific market and
product category. The company adapts its strategies to fit the unique characteristics of each
market it operates in.

Apple Inc. is an American multinational technology company headquartered in Cupertino,

California. Apple is the world's largest technology company by revenue, with US$394.3 billion in
2022 revenue. As of March 2023, Apple is the world's biggest company by market capitalization.

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Conclusion

In conclusion , we can provide some realistic recommendations for Apple Inc. based on its
current position and industry trends. However, please note that these recommendations are
speculative and should be carefully evaluated by Apple's management team before
implementation. Here are a few suggestions:

Firstly , Continued Focus on Innovation . Apple should continue its commitment to innovation
by investing in research and development (R&D) to bring new and groundbreaking products to
the market. This can involve advancements in areas such as artificial intelligence, augmented
reality, health technology, and sustainable design.

Next , Diversification of Product Offerings . While Apple has a strong presence in the
smartphone and personal computer markets, diversifying its product offerings can help mitigate
risks and tap into new revenue streams. This could include expanding into emerging
technologies such as electric vehicles, wearables, smart home devices, or healthcare-related
solutions.

Then , Embrace Sustainability . Given the increasing global focus on sustainability, Apple
should continue to prioritize environmental responsibility across its operations, products, and
supply chain. This can involve reducing carbon footprint, promoting recycling and reuse, using
renewable energy sources, and adopting eco-friendly packaging.

Also , Strengthen Services and Software . Apple has made significant strides in building its
services ecosystem, including Apple Music, Apple TV+, Apple Arcade, and Apple Pay. To further
enhance customer loyalty and revenue generation, Apple should continue to improve and
expand its services portfolio while ensuring seamless integration with its hardware offerings.

In addition , Enhance Market Penetration in Emerging Economies . As smartphone penetration

continues to grow in emerging economies, Apple should focus on expanding its market
presence in these regions. This can involve adjusting pricing strategies, introducing more
affordable product options, and forging strategic partnerships with local telecom carriers and
retailers.

Next , Customer Data Privacy and Security . With growing concerns around data privacy and
security, Apple should continue to emphasize its commitment to protecting customer
information. Strengthening encryption, offering transparent privacy controls, and educating
users about data security practices can further enhance Apple's reputation as a trustworthy
brand.

Furthermore , Foster Developer Ecosystem: Apple's success is closely tied to the vibrant
ecosystem of developers and third-party apps. By providing developers with robust tools,

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resources, and a fair revenue-sharing model, Apple can encourage app innovation, attract top
talent, and maintain a strong competitive edge.

Next , Expansion into Enterprise Solutions: Apple has made inroads into the enterprise market
with products like the iPad Pro and MacBooks. Capitalizing on this momentum, Apple can
continue to develop enterprise-grade software, security solutions, and collaborative tools to
further penetrate and cater to the needs of businesses.

Next , Strategic Acquisitions: Apple should consider strategic acquisitions that align with its
long-term goals and enhance its technological capabilities. This can involve acquiring
companies with expertise in areas like artificial intelligence, cloud computing, or emerging
technologies that can complement and strengthen Apple's product and service offerings.

Lastly , Maintain Brand Differentiation: Apple's brand is synonymous with premium quality,
design excellence, and user experience. It is crucial for Apple to maintain its brand
differentiation by consistently delivering products and services that exceed customer
expectations, while staying true to its core values.

These recommendations aim to provide a broad overview of potential strategies for Apple to
consider. However, the specific actions taken by the company should be based on a thorough
analysis of market conditions, customer preferences, and internal capabilities.

References

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are
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4. https://medium.com/the-pointy-end/newness-timing-and-market-entry-strategy-ad01b8f1
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