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  1. 1. iPhone Think Different
  2. 2. iPhone: A Gem but not without Controversy International Marketing Strategy Prof. Basil Janavaras Fragiskos Pollakis Chrysanthi Valianatou Ourania Xaplanteri Academic year: 2014- 2015
  3. 3. “The Jesus phone” Introduced in 2007 True innovation Dominant player in the cellphone market Change of consumers’ perception about smart phones iPhone 1
  4. 4. Problem statement
  5. 5. Short - term problem The service provider controversy Ambivalence about the service providers choice in Europe Criterion of selected countries  iTunes Music Stores presence France  Orange network Germany  T-Mobile United Kingdom  Telef6nica’s 02 Limited European presence
  6. 6. Long - term problem Labor conditions in supplier’s factories Under-age labor Excessive working hours Overcrowded dorms (Foxcton’s factories) Health problems Environmental Issues Inappropriate disposal of wastes
  7. 7. Taxation Policy “Double Irish with a Dutch Sandwich” Lower taxes Use of subsidiaries in low tax countries Potential ethical issues Government and public’s reactions Key facts
  8. 8. Cause – Effect Relationship Limited number of service providers Lack of strong presence in European market Negative impact on Apple’s image Environmental violations & labor conditions Tax relieves & cooperation with suppliers Immense profits Minimization of production cost Competitive prices
  9. 9. Strategic Alternatives Short – term Market Research Service providers with strong presence in Europe New collaborations With big retail technology stores Advantages Bigger profits Increase market share Reach a wider audience Disadvantages Cost & time Massive character Losing its unique identity
  10. 10. Strategic Alternatives Long – term Enforcement of laws by the government of China Implementation of a strict working policy preventing: Under age employment Long working shifts Health conditions Environmental violations
  11. 11. Strategic Alternatives Charities Children Non-profit organizations Campaigns & Events Promoting the abolishment of child labor Environmental-friendly campaigns Advantages Enhancement of company’s image Tax relief Disadvantages Conflict with suppliers & government
  12. 12. Final solution Careful collaborations with the top players in the market Focus on Corporate Social Responsibility Common strict working policy Monitoring the suppliers Stop collaboration in case of non-compliance
  13. 13. Implementation Immediate establishment of a separate department responsible for: CSR Improvement of company’s image Emphasis on Apple’s social sensitive side Financial resources Estimated by the annual budget
  14. 14. Thank you