MAR7504-A: Apple's International Marketing Strategy in Canada

This report provides an analysis of Apple's international marketing strategy, focusing on its entry and expansion into the Canadian market. It includes a situation analysis of the smartphone product in Canada, examining both the micro and macro environments. The report also explores Apple's ...Read More

Cover Page
International Marketing, MAR7504-A
Name:
I.D:
Code:
Words: 2000
Company
Apple
Company Headquarter
Unites States, California
Host Country
Canada
Product
Smart Phone
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Table of Contents
Introduction........................................................................................................................3
Situation Analysis of Smart Phone Product (Canada)......................................................3
Micro Environment (Internal Analysis)...........................................................................3
Macro Environment........................................................................................................5
Market Entry Strategy in Canada......................................................................................6
Global Marketing Strategy Implementation (US vs Canada)............................................7
Marketing Mix (4P’s).......................................................................................................7
Recommendations.............................................................................................................9
Conclusion.......................................................................................................................10
References.......................................................................................................................11
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Introduction
The Cupertino, California-based Apple Inc. is an American multinational technology firm
known for its work in the consumer electronics, software, and internet services
industries. The headquarters of the company is located in the United States. Along
with Online stores, Google, and Facebook. The business divides its operations across
the Americas, Europe, Japan, and the rest of Asia and the Pacific. Products and
amenities offered by Apple comprise the iPhone, Mac, Apple TV, and Watch. In 2007,
Apple introduced the world to its first iPhone, ushering in the age of touch-screen
smartphones (Gleiss et al., 2021). In this research study, I have chosen the Apple
product that is a smart phone. This study covers the internal and external analysis of
the Apple corporation and its local rivals, and marketing mix of Apple product. The
document concludes with several suggestions for Apple's future growth in Foreign
Host Country (Canada), and offers the report's market entrance and worldwide
marketing plan.
Situation Analysis of Smart Phone Product (Canada)
Apple Ansoff Growth Model
Based on the framework of the Ansoff Matrix, Apple employs all four growth methods
concurrently.
Figure 1: Apple Ansoff Matrix
Source: Self-Created
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Market Penetration
Market penetration is the process of marketing already existing items to already
established markets. Apple's marketing approach is aimed towards penetrating new
markets. Apple's ecosystem of goods and services is also crucial to its very effective
market penetration strategy (Bahador, 2019).
Product Development
Making new items for preexisting markets is part of this process. One of Apple's primary
growth tactics is the continual release of new products.
Market Development
Discovering untapped markets is at the heart of every successful market development
plan. The world's most influential information technology corporation looks to the
region's growing economies as promising long-term prospects.
Diversification
The most dangerous tactic is diversification, which necessitates entering unproven
industries by creating novel items. As a corporate strategy, Apple's diversification efforts
have been limited (Bahador, 2019).
Micro Environment (Internal Analysis)
Strength
 The size of existing and potential clienteles is essential for every business. Apple has
a huge customer base. In 2022, almost 1.8 billion Apple products were in use,
according to data (Yie et al., 2021). Regarding technological innovation, Apple has
always caught up to the rivalry. (Moro-Visconti, 2022).
 Apple has now expanded into other areas, selling things like iPhones and
Smartwatches (Hennart and Verbeke, 2022). Many customers would only settle for
top-notch quality, and Apple is adept at meeting that demand (Hennart and Verbeke,
2022).
Weaknesses
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 Apple's budget for numerical ads fell by as much as 68% in 2021 linked to what it
would have cost the company in 2021.
 Perhaps the greatest on the market, not everyone can acquire people's items.
Since Apple's prices are so high, many would-be customers have turned to cheaper
alternatives (Hennart and Verbeke, 2022).
Opportunities
Although most people equate virtual reality with gaming or other forms of amusement,
Apple may utilize it for advertising (Hennart and Verbeke, 2022).
Threats
 The United States has slapped significant tariffs on China, which has led to a rise in the
price of Chinese goods.
 Technology giants like Google, Huawei, and Samsung are generous Apple a run for its
money with their leading-edge forthcoming possessions, which has the company
worried (Yie et al., 2021).
Macro Environment Analysis
Below is the macro analysis of the Hosting nation (Canada) where the Apple
corporation sell their items.
Political
While Canada has prioritized collecting more tax money from the world's most
significant technology firms, the practice has harmed Apple, which has had to pay a
higher tax rate while seeing its profits decline. To navigate the tangled Chinese supply
chain, Apple relocated a portion of its production operations, which impacted the
corporation (Jelassi, 2020).
Economic
A strong economy is one of the most important conditions for a company's expansion in
Canada. Apple now has a greater chance of breaking into the lucrative Chinese and
Indian markets due to the general improvement in economic conditions throughout Asia.
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When the economy recovers worldwide, people will again be able to afford luxury
brands like Apple (Jelassi, 2020).
Social
There has been a general improvement in the standard of living of the ordinary
Canadian consumer over the last several years, making the region more amenable to
the Apple computer. Apple's premium processing puts them at a disadvantage in the
Indian and other Asian markets, which iPhone successfully exploited. In contrast, the
United States is a promising market for Apple (Jelassi, 2020).
Technological
Apple is a technology firm; hence it is vulnerable to the effects of technical progress and
development. The corporation has adjusted its market and strategy in response to the
rapid development of technology over the previous decade (Jelassi, 2020).
Environmental
It produced Apple results in greenhouse consequences because of its high lead and
arsenic concentration. Apple began its renewable energy and e-waste initiatives a few
years ago to reduce environmental impact (Jelassi, 2020).
Legal
Companies risk heavy financial penalties for noncompliance with applicable laws and
regulations in Canada. As a firm with Apple's level of technological sophistication, the
company has always needed help with patent laws and rights to intellectual property.
However, by adjusting its pricing, it can boost its sales (Jelassi, 2020).
Market Entry Strategy in Canada
The iMac marked the beginning of Apple's successful run of products prioritizing
aesthetics and ease of use. The iPod, iPhone, iBook, MacBook, and iPad were covered.
The iPod started to dominate the MP3 player industry, and with the advent of the
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iPhone, it quickly became the most popular smartphone. The iPad convinced millions of
consumers that they needed another screen to take in media. All of these tools have
been rated as superior to their counterparts on the market. Jobs constantly studied
design and infused the Apple ethos into the creative process (Yun et al., 2019).
Still, after a few minutes of practice, they become natural and intuitive, adding to Apple's
allure via their apparent ease of use. The media, the public, and the brand's die-hard
supporters now eagerly anticipate each new Apple product. Apple's mission is to
provide its users with the best possible experience across all its products. The
company's marketing approach prioritizes developing cutting-edge offerings that appeal
to affluent buyers. The company may set itself out from its rivals in the market by
adopting this strategy. Apple's efforts are directed at making things as easy as possible.
The strength of Apple's marketing strategy and the driving force behind the company's
success are both evident. Improve iPhone 23's market through, among other things,
developing Apple as a high-quality and recognized brand, increasing Apple's value and
market domination by directly making and distributing products. Spending on R&D to
produce new goods and technology (Giachetti, 2018).
By keeping its product and service pricing high, Apple projects an image of reliability to
customers who base their purchasing decisions only on cost. Given the high price tag,
the iPhone 13 is often purchased by those with deep pockets. Apple's market worth
increased to new heights in 2020 due to the company's triumphs and the establishment
of long-term goals. An all-time high in sales was achieved for the company's wearable
technology, which includes the Apple Watch. As contactless payment methods like
Apple Pay gained popularity, Apple saw an increase in service income during the
COVID-19 epidemic. Second, Apple is revamping macOS so programmers may deploy
iOS and iPad applications to the Mac without rewriting them (Giachetti, 2018).
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Global Marketing Strategy Implementation (US vs Canada)
Marketing Mix (4P’s)
The four components of Apple Inc.'s marketing mix (4P) are in accord with the
company's marketing strategy and worldwide market.
Product
Apple, Inc. is widely recognized as a global leader in product innovation from the US
to Canada. It always surprises the market with innovative new items. Below are some of
Apple's most successful products that illustrate the company's strategy (Wu and Li,
2018).
1. Mac: Macintosh, more often referred to as Mac, is one of Apple Inc.'s flagship
products and the company's only raison. In recent years, it has released updated
versions that have found widespread success in the United States. Mac Pro, and
MacBook Pro, are just a few of the models available today (Bahador, 2019).
2: iPhone: Apple Inc. was the first corporation to launch intelligent phones that featured
multiple touches, i.e., iPhone. It was like having an iPhone and an iPod rolled into one
convenient device. The most recent models, the iPhone 7 and iPhone 7 Plus, are only
two of many available variants.
3. iPod: The iPod is a one-of-a-kind compact digital music player to listen to music on
the go. There are now a wide variety of iPods available, including the Nano, touch,
shuffle, and others.
4: Apple Watch: A fitness tracker that syncs with your iPhone.
5. Apple TV: The publication of Apple TV has been one of the company's worst
blunders (Palmatier and Crecelius, 2019).
Price
In Canada, Apple Inc. sells high-end items that are only affordable for some groups.
Apple's marketing mix and price approach reflect that the company is the market in its
field. However, the level of competition affects the price as well. Apple is infamous for its
leading-edge goods, but with great invention originates a substantial price tag
(Schlegelmilch, 2022a). So, to impress their clientele, they maintain a price strategy that
reflects this. Apple's MacBook’s, and iPhones, are all high-end offerings. Apple items
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are expensive because of their high quality and prestige. The high price of these items
is a constant source of debate (Ertz and Michelet, 2022).
Place
Apple takes a bold approach to attract high-end clients. Apple Inc. is reaching out to
customers through several different avenues. Apple decided it would be a good idea to
sell its goods via its own retail locations, called Apple Stores. Plus, they took the idea of
exchange partners with them. They work composed with these merchants to keep the
distribution system running smoothly. They are confident that falling the number of their
exchange associates would recover their channel's efficacy. Next, these items are sent
to Apple-approved resellers (Schlegelmilch, 2022b). These are the high-end stores that
have to meet specific business goals. Online marketplaces are another distribution
method. Apple items may be found on the majority of online marketplaces. Apple's high
staff-to-customer-interface ratio at its retail locations is a crucial difference. The
employees are available to ensure your complete satisfaction with the merchandise
(Sinha et al., 2022).
Distribution (Promotion)
Apple Inc. aims its products to niche markets. Its goods and the features that set it apart
from rivals are, therefore, front and center throughout promotional operations. Apple's
promotion approach in the marketing mix underlines weighty use of transmission, print,
digital, and outdoor advertising. It has maintained a consistent position that
advertisements should be brief and touching to be effective (Bahador, 2019). There is
no fluff in these commercials; they go right to the point. These commercials will debut at
some point during the introduction of a product. Apple Inc. rarely includes sales
promotions or provides discounts to anybody besides students (O’Rourke, 2021).
Global Expansion
Having surpassed Microsoft as the most valued business in the world in January 2022,
Apple is the largest publicly listed technology firm by revenue. It is one of the "Big Five"
American corporations, along with Microsoft, Amazon, and Google.
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Recommendations
Apples premium Pricing Policy decreases its petition to middle-income customers.
Approximately two to three years after the first iPhone release, some consumers moved
to an earlier model after the device's price dropped. As a result, fewer people will buy
new items. Adding items at more reasonable prices might help the firm attract a broader
range of customers, including those with lower incomes. Because other nations are
making cheap clones of the iPhone, the company might determine many methods to
differentiate its goods. This has vulnerable the firm's efforts to reservation its standing in
both existing and potential markets (Tajdini, 2022).
Considering the social subtleties previously at work in the marketplace, the company
could adjust the positioning of all of its offerings accordingly. Key reasons that affect a
product's attractiveness on the market comprise the financial crisis, lower income,
increased pricing, etc. Publicizing should focus on senior citizens and highlight the
features of the phone that are most pertinent to them (Tajdini, 2022). Since there are
many potential customers in Asia, the corporation might quickly grow its processes
there. Due to the availability of talented and young workers, the company may also
move some of its production to these areas. The company's creative team may benefit
from adding many young people to present new ideas and technologies to the market.
As time goes on, customers' wants and demands evolve, and these original thinkers
can easily track such shifts (Tajdini, 2022).
Conclusion
In the above report, I have chosen the Apple product that is a smart phone. This study
covers the internal and external analysis, and marketing mix of Apple product in
Canada. The document concludes with numerous suggestions for Apple's future
development in Foreign Host Country like Canada, and offers the market entering and
worldwide marketing plan.
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References
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