Apple Globalization Essay
Apple distributes its products in over 80 countries through its direct channels, its cellular network carriers distribution channels and third party resellers. Apple success is due mainly to the collaboration of the iphone with its updateable applications. In markets such as the United States and Japan. Apple business strategy focuses on bringing the best personal computing and music experience to students, educators, creative professionals, businesses, government agencies and consumers through its innovative hardware, software, peripherals, services and Internet offering (Apple Computer, 2005).
According to a report in Electronista, market data from Gfk Japan shows the 32 GB iPhone is in the No. 1 spot for July, ahead of Japanese-made phones from Sharp, Panasonic (PC), NEC, Casio and Sony Ericsson (a Japanese/Swedish joint venture). ( Dewiit, Philip Elmer cnn money article) In one of the most technologically advanced countries such as Japan it is no wonder why apple seems to be gaining so much success in a foreign market. The Japanese market is in awe of the simplicity and performance that apple product provide. In doing a PEST analysis I have come to a realization that the Japanese market wants high performance low cost technically superior and social acceptable products at an affordable price.
Rendering apple a perfect company to satisfy these wants. Apple distributes its products in Japan through its own retail stores and companies such as Wal-Mart and other retail giants. Accoding to the Apple annual report Japan’s net sales increased $551 million or 32% in 2009 compared to 2008. The key contributors to this growth were increased iPhone revenue, stronger demand for certain Mac portable systems and iPods, and strength in the Japanese Yen (Apple annual report 2009 pg. 13).
Similarly Apple’s target market in the United States wants the same kind of high performance low cost gadgets. Apple manufactures most of its products in China and has them shipped to the United States to be sold at their apple stores as well as retail stores such as Wal-Mart. Apple is a huge success in America and word is getting around. The world is taking notice to the technical giant and surely buying into the apple revolution. Apples success in the united states contributes to its success around the world. With itsiphone exclusive to AT&T even such a 3rd rate company was able to make a comeback and to lead the cellular market when it bought exclusive rite to the iphone.
This just shows you the kind of power Apple holds. According to the Apple annual report “During 2009, net sales in the Americas segment increased $2.4 billion or 15% compared to 2008. The increase in net sales during 2009 was attributable to the significant year-over-year increase in iPhone revenue, higher sales of third-party digital content and applications from the iTunes Store, and increased sales of Mac portable systems. (Apple annual report 2009 pg.13)
Apple has over 240 stores located around the globe. America dominates the list with its 218 stores while France is set to start opening stores at a rate that is second only to the US. Apple is a juggernaut in the computer industry with a presence that keeps on growing within every country. Everyone in the world has heard of or knows someone that either owns or associates with Apple Inc. Thus making it into a giant that only few can contend with. The continued success of Apple Inc makes for a global leader in the innovation of tomorrow.
Apple annual report 2009
Dewitt, Philip Elmer. “Apple iphone No. 1 in Japan”. CNN MONEY. august 17 2009 .
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SKIPWORTH, HUNTER. “IPHONE IN JAPAN”. TELOGRAPH.CO.UK. DEC 1 2009