Global Marketing Strategy Assignment

Running head: GLOBAL MARKETING SRATEGY
Global Marketing Strategy
Name of the Student:
Name of the University:
Author Note:

1GLOBAL MARKETING SRATEGY
Table of Contents
Explanation of Globalisation......................................................................................................2
Reasons for Organization to Go Global.....................................................................................2
Internal and External Environment of Apple.............................................................................3
Impact of Globalization on Marketing.......................................................................................5
Competitive Advantage of Globalization to the Organisation...................................................5
References:.................................................................................................................................6

2GLOBAL MARKETING SRATEGY
Explanation of Globalisation
Globalization refers to global integration of investment, information technology,
international trade and cultures (Beck 2018). The policies of the government designed for
opening the economies internationally as well as domestically for boosting development in
the poorer countries and raising the standard of people has driven the concept of
globalization. Globalizations helps the corporations in gaining a competitive advantage
ranging from the lower cost of operations and access to the newer raw materials and the
additional markets. The present globalization boom had two driving factors in the form of
public policy and technology
Reasons for Organization to Go Global
The reasons for Apple in going global include:
1. Market Diversification and Enhancement of Customer Base: The saturation of
the domestic industry leads to the substantial snapping of the clients. This initiated the drive
for Apple in looking forward to emerging markets with newer markets and customers. The
emerging markets in the developing countries provide opportunities for sources of new
revenue (Stiglitz 2017). Moreover, it also helps the company in discovering newer resources
and creation of opportunities of partnership into the overseas market. The first mover
advantage of Apple helps it in establishing a stronger presence globally.
2. Gaining Geographic Advantage: The expansion of Apple on a global scale
helped it in developing synergies in the strength and resources that multiplied the value of the
expansion (Asongu 2014). It also provides access to a newer pool of talent. Apple have
expanded in the Asian market for leveraging the technological expertise of the local
populations while boosting own capabilities for expansion of the client base.

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3. Diversification of Risk: Establishing operation in the multiple countries has helped
Apple in gaining increased insulation from the economic downturns in some locations
(Yeyati and Williams 2014). For instance, the US economic slump would not hit Apple much
if its other markets do well.
4. Gaining Competitive Parity: Competitors have enhanced tendency of recognition
and brand exposure by entering markets where Apple does not have a presence (Kotabe and
Helsen 2014). Apple can therefore maintain parity in the activities and gain exposure by
entering before the competitors.
Internal and External Environment of Apple
Internal environment of Apple refers to internal factors of business that it can not
only control but also alter and adapt from time to time (Kuratko, Hornsby and Covin 2014).
This is explained with the help of SWOT analysis:
Strength
1. Capabilities of advertising for increasing
awareness of the brand
2. Extensive and Stronger Distribution
channel in the United States
3. Undertakes vertical integration
4. Creation of reputation and brand
awareness
5. Strong Financial Performance
Weakness
1. Increased dependence on the sales of
iPhone
2. Weaker distribution channels for other
markets
3. Lower expenditure on development and
research
4. Incompatibility of products with other
operating system
Opportunities
1. Expectation for significant market growth
Threats
1. Intense competition enhances pressure on

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over last decade
2. Plans for introduction of health related
wearable gadgets
3. Expansion of the markets for mobile
payments
4. The app market will gain necessary
traction with increased business flocking
towards the buying of the software based on
subscription
the market share, profit and revenue
2. Stronger US dollar
3. Damaged reputation of brands due to
infringements of the lawsuit
4. Greater risk in breach of data
The external environment represents uncontrollable factors analysed using PESTEL
(Khan, Alam and Alam 2015):
Political: Apple being one of the highest revenue earning companies faces high
corporate taxation in United States. This has led to the income inequality in major political
issue. Moreover, Apple is also dependent on China due to the lowering manufacturing cost.
Thus, political unrest in China not only disrupts manufacturing but also increases the
manufacturing cost of Apple.
Economic: The higher labour cost of China takes the cost advantage away from the
Apple products.
Social: The consumers of Apple in the United States lack the emotional attachment
required for driving the sale of the products. However, biggest expected growth in the
consumer spending in the coming decades will be in areas like Africa where people remain
unfamiliar with Apple products.

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Technological: Competitors like Samsung and Google demonstrated stronger ability
in duplicating the products and services of Apple that implies many of the products and
services of the company do not remain unique.
Environmental: The biggest environmental issue faced by the Apple remains in
disposing the non-working and the used electronic devices. The expense involving the
disposal of the devices containing Lithium batteries was high.
Legal: Apple recently entered the regulated financial sector through Apple Pay. This
leads apple to face increased litigation levels.
Impact of Globalization on Marketing
1. Technological Advancement: Leads to technological advancement in technology
at every level that includes access to the internet, standardization of the transport containers
and faster global transportation.
2. Global Communication: This is aided by the various online communication
channels including the social media that leads to the homogenization of taste from the tablet
computers to the music
3. Enhanced Capital Mobility: The movement of the capital across the national
borders has made it easier for Apple in securing finance from various sources thereby
facilitating foreign expansion and domestic growth.
Competitive Advantage of Globalization to the Organisation
Globalization has lead to the creation of market dynamics that gives a positive boost
to competition that requires greater expertise in the optimization of the supply chain along
with efficiency and quality levels (Dunning 2014). This also leverages the competitive
advantage of Apple in the international market. Therefore, it is vital for the company to

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device strategies that help it in remaining competitive. Although the global commerce helps
in equalizing the business landscape, Apple might face new competitors who have real
advantages. Thus, the greater pressure from the foreign firms has positive affect the
innovation of Apple likes for example the Apple Watch Series, thereby holding a constant
vertical linkage with foreign firms.
However, in the face of globalization, to gain a competitive advantage it is also
necessary to protect such innovation through copyrights and patents. A patent refers to the
right put forward by the government of United States from preventing the other parties from
either selling, making or using the company’s invention. On the other hand, copyright refers
to the prevention of copying any two or three-dimensional work of art, computer program or
writing. However, the consequences of not protecting the innovation will lead to other
companies in copying the designs seen in a recent case where Samsung tried to copy some of
the design and software of Apple’s mobile devices forcing the company to file a lawsuit
against Samsung.

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References:
Asongu, S., 2014. Financial development dynamic thresholds of financial globalization:
evidence from Africa. Journal of Economic Studies, 41(2), pp.166-195.
Beck, U., 2018. What is globalization?. John Wiley & Sons.
Dunning, J.H., 2014. The Globalization of Business (Routledge Revivals): The Challenge of
the 1990s. Routledge.
Khan, U.A., Alam, M.N. and Alam, S., 2015. A critical analysis of internal and external
environment of Apple Inc. International Journal of Economics, Commerce and
Management, 3(6), pp.955-961.
Kotabe, M. and Helsen, K., 2014. Global marketing management.
Kuratko, D.F., Hornsby, J.S. and Covin, J.G., 2014. Diagnosing a firm's internal environment
for corporate entrepreneurship. Business Horizons, 57(1), pp.37-47.
Stiglitz, J.E., 2017. The overselling of globalization. Business Economics, 52(3), pp.129-137.
Yeyati, E.L. and Williams, T., 2014. Financial globalization in emerging economies: Much
ado about nothing?. Economía, 14(2), pp.91-131.