In this presentation different models of international business strategies are explained

1. International Business
strategies of Apple Inc.
Palash Goyal -2014 MBA15

2. 1974
The idea for Apple
Computers was
BORN
1976
First Computer was
SOLD

3. 1984
The Macintosh was
INTRODUCED
1985
was discharged
Steve Jobs

4. 1986 1997
Apple II was
introduced
Steve Job returns
to apple

5. 2001 2011
ipods 4 & 4s

6. And the Innovations continue…

7. Product portfolio

8. Cont..

9. Cont..

10. How Apple does INNOVATIONS…
“Great ideas push the world forward. And they can come from
anywhere.”
Apple relies on their employees’ diverse backgrounds and
perspectives to spark innovation. They hire more
inclusively, choosing partners who make diversity a priority.
In the US they hired more than 2,200 Black employees — a 50
percent increase over last year — and 2,700 Hispanic
employees, a 66 percent increase. nearly 50 percent of the
people they hired in 2015 were women, Black, Hispanic, or
Native American.
http://www.apple.com/diversity/

11. • Genius ergonomics make Apple products
effortless to use.
• Innovation lies also in Apple’s innovative
business models – new synergistic ways to create,
deliver, and capture value.
• For instance, the iPod and iPhone would not have
had nearly as much impact if they hadn't been
matched with iTunes and the App Store
respectively.
Cont..

12. • Apple attempts to increase market demand for its
products through differentiation, which entails
making its products unique and attractive.
• Apple has succeeded in creating demand for its
products, giving the company power over prices
through product differentiation, innovative
advertising, ensured brand loyalty, and hype around
the launch of new products.
Cont..

13. Supply chain
Source: www.supplychain247.com
IT research firm Gartner ranked Apple’s supply chain last year as the best
supply chain in the world for the third time in a row.

14. Strength
• Brand equity.
• Tag of innovation.
• Consumer loyalty.
•Amazing software and OS.
• Design consistency.
Weakness
•High price.
•Restrictions on the phone.
•No Steve jobs anymore.
Opportunities
•Continued technological
advancement.
• Geographic expansion.
Threats
• Android – The single biggest
threat to Apple Iphone is the
Android operating system.
•Samsung with it’s large varieties of
mobile phones coming in all shapes
and sizes.
SWOT Analysis

15. Porter’s
Diamond
Model

16. Structure of
firms & rivalry
Factor
conditions
Demand conditions
Related & Supporting
industries
Government
Chance
• Distribution
Network.
•Transportation.
•Good
communication
system.
•Brand image
(status)
•high demand in
India till 2014 , but
in 2015 when
iphone 6 & 6 plus
were launched the
demand was
comparatively less,
sales were 10-20%
of previous year.*(2)
Source:*(1) IndiaTimes.com
*(2) http://retail.economictimes.indiatimes.com
*(3) http://indiatoday.intoday.in/ and economic times
•Globalized & Standardized .
• Design and technology.
•Apple has to compete with rivals like Samsung
(tough competitor)and Micromax as iPhone only
enjoys 10% market share in India.*(1)
• Redington & Ingram
supply Apple's
products in India.
•Brightstar.
•Apple filed request with
govt. to open Apple store
in India.
•Relaxation in FDI
norms.
•Relaxation in local
sourcing that was
30%.(*3)

17. Leontiades’
Model

18. Global high share
strategy
Global niche strategy
National high share
strategy
National niche
strategy
Global
National
High Low
Market share objectives
Marketscope

19. Cont..
Global Niche Strategy:
 Offering product mix in mass market.
International Standardization.
It targets upper segments, having low price sensitivity.
High research & development.
Unit cost reduction by foreign outsourcing & importing.
Apple has 479 retail stores in 18 countries and an online
store available in 39 countries.*(1)
iphone 6 & 6 plus were available in 69 countries &
territories.*(2)
Source: *(1)Wikipedia
*(2)www.apple.com

21. AdministrativeCultural
•Working culture in India is slightly
different , attitude regarding the work
creates differences.
•Language barrier is no longer exist for the
international companies like Apple, English
has been adopted as USB of language.
•As Apple is having its own organizational
culture based on innovation , creativity
and secrecy , the challenges arise while
matching their organizational culture with
the country’s culture.
•Biggest obstacle has been removed for
setting up fully owned stores in India for
Apple.
•Union government has relaxed mandatory
condition linked to single brand retail on
30% sourcing from India.
•This is creating possibilities to Foxconn of
setting up a manufacturing plant in India
for Apple products.
•Political hostility and the corruption are
the two terms which is generally
exaggerate by the competitors of the
organizations.

22. Economic Geographic
•India is having GDP of 1262.62 USD which
illustrate that Apple is having market of
those customers who can afford their
products.
•Labor cost in low, distribution and sales
are the most dominant activities of Apple
in India for that purpose the labor cost is
low.
•Availability of skilled human resources at
lower cost.
•Apple is having 0.15% of world economy
which depicts is financial capabilities itself.
•Location of India is near to assembling
location of apple like China so it provides
a geographical advantages.
•Climate differences can effect the
distribution related operations due to
diversified climate of country.
•Transportation and communication ,
these factors are supportive for the apple
due to availability of giant players in
logistics and also availability of high speed
highways connectivity.

23. International Product Life Cycle(IPLC)
Curve

24. Conclusion
• Indians getting problems in downloading and
there is problem in Bluetooth connectivity so
this influence many buyers towards another
options. So these problems should be solved.
• Apple should provide some apps free , which
are freely available in android market so that
they can increase their customer base.
Recommendations

25. IT’s a RoLLS ROYce OF ELECTRONICs