Report on Apple Inc.'s Global Economic Environment and Marketing

This report provides a comprehensive analysis of Apple Inc.'s marketing strategies within the context of the global economic environment. It delves into Apple's generic and intensive growth strategies, including product development, market penetration, and market development, and how these c...Read More

Running head: Global economic environment and marketing
Global economic environment and marketing

Global economic environment and marketing
Table of Contents
Introduction.................................................................................................................................................3
Apple strategies for sustainable competitive advantage...............................................................................3
Impact of the company’s strategies on consumer behavior..........................................................................7
Macro environment of the Apple.................................................................................................................8
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11
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Global economic environment and marketing
Introduction
The report talks about the global economic environment and marketing of the Apple Inc.
Apple Inc. has been taken in the report to explain the business operations and activities of the
firm. It tells that how the company is using strategies to gain various competitive advantages
across the world. It describes the macro environment of the Apple. It depicts the impact of the
Apple strategies on the consumer behavior. Along with this, it explains the marketing theory of
the company. It also explains the mission and vision of the company. It tells that how the
company can meet its long term goals and objectives by maintaining sustainability in the
environment.
Apple Inc is an American global technology corporation with its headquarter is located in
the California United States. The company deals with various products such as iPod, iPhone,
Apple watch, home Pod, Mac, Apple TV, software and electronic vehicles. Apple is one of the
biggest information technology corporation measured by the revenue (Van Hout, Maat & De
Preter, 2011). It is the second biggest mobile phone manufacturer company after Samsung. There
are approx 123,000 employees are employed in the company. In today’s era, the company is
increasing and expanding its operating income and profit of the company. The firm was founded
on 1st April 1976 by Steve Jobs, Ronald Wayne, and Steve Wozniak. In today’s world, the
company is enjoying a high level of brand loyalty in the market. Apple was the first product of
the company (Heracleous, 2013). Corporate level strategies and business generic strategies are
used by the company to generate more revenue in the competitive environment. Apart from this,
the company maintains sustainable human resource management to appoint potential and
competent employees around the world.
Apple strategies for sustainable competitive advantage
Apple is one of the biggest leaders in the world. The company uses intensive growth
strategies and generic strategies around the world to gain various competitive advantages in the
market. There are various competitors of the company that includes Nokia, Blackberry, Sony,
Palm, and Motorola. The company can use various strategies to overcome the competitors across
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Global economic environment and marketing
the world. The strategies’ of Apple Inc. have been discussed below (Baroto, Abdullah & Wan,
2012).
Apple’s generic strategy: This strategy is based on the porter model. It is the broad
differentiation strategy which focuses and monitors on the competitor's products and services
globally. Through this strategy, the company is able to stand out in the global market. The main
aim of this strategy is to set the prices of the products to differentiate its products from the
competitor’s products. The firm can obtain its long-term goals and objectives by using this
strategy in the market. This strategy also helps to maintain leadership and goodwill worldwide.
By using generic strategy, the company is able to attract more customers across the world. Apple
should develop and build innovative products so that the company always stands out from the
competitors around the world. Along with this, Apple must explore and expand its trading
activities and operations in the world. In this way, the firm can meet its long-term mission and
vision of the firm across the world (Morgan & Rego, 2009).
Intensive growth strategies: Apple uses intensive growth strategies to overcome the
competitors worldwide. The intensive growth strategies include the following:
A. Product development: It is the foremost and important intensive growth strategy of the
company. Under this strategy, Apple Inc. should provide attractive and dynamic products
to the customers to increase the revenue and growth of the company. This strategy is
related to the mission statement as well as vision statement of the company. Through this
strategy, Apple develops and launches new products for the new and innovative mobile
market. In this way, it helps to increase the profits of the company to beat the competitors
globally.
B. Market penetration: It is the significant strategy of the intensive growth strategy. Under
this strategy, the company is trying to acquire large market share by selling the effective
products of the firm. Along with this, the company uses effective and unique promotion
and advertisement strategies to attain the long-term success and growth of the Apple.
Through this strategy, the company is able to reach in the entire market segments around
the world (Danciu, 2010).
C. Market development: It is the important strategy of the intensive growth strategies
across the world. This strategy focuses and monitors on the new and competitors products
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Global economic environment and marketing
globally. The firm uses this strategy to differentiate its products from the competitors’
products in the world. In this way, the company is able to develop and build target market
worldwide (Keller, Parameswaran & Jacob, 2011).
Apple market segmentation strategy: The segmentation is the process of dividing the target
market into different types of customers in the world to gain more revenue and profit. This
strategy helps to develop and build new products in the global market. Through this strategy, the
company is able to develop and build products on the basis of behavior and attitudes of the
people. By using this strategy, Apple is able to make a good position around the world. The
company is rendering the products in different colors by using this strategy across the world
(McKelvie & Wiklund, 2010).
Targeting strategy of the Apple: This strategy is used by the company to select the right,
potential and appropriate customers in the market. The selection is done on the basis of the size
of the market, the degree of the competition and market growth. Through targeting strategy, the
company evaluates and analyzes the target market to increase the sale of the Apple products. The
firm measures and identifies the needs, requirements, and expectations of the consumers around
the world. The Apple Inc. target market includes teenagers, business people, college students,
and adults. It is the unique and effective strategy of the Apple Inc. to maximize the number of
customers in a competitive environment (Melo & Galan, 2011).
Positioning strategy of the Apple: Positioning refers to the recruitment and selection of the
marketing mix. It is also important to increase the number of customers in the market. It is the
tool to reach its target audience globally. The apple marketing strategy is very general and
common. Further, the company uses its brand to gain various competitive advantages in the
market. The positioning strategy focuses and monitors on the emotions and feelings of the
customers to gain various competitive advantages globally. This strategy can be developed and
built by the company to evaluate and analyze the attributes, competition, objectives, and
applications of the products around the world. There are several benefits taken by the company
by using positioning strategy within the organization (Chang & Lin, 2010).
Branding strategy: This strategy is used by the company to make a good position in the global
market. This strategy helps to explore and expand its wide range of products and services
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Global economic environment and marketing
globally. Steve job is the co-founder of the company who focuses on the branding strategy to
gain the competitive advantages around the world. The company maintains coordination and
cooperation with customers to attain its objectives and goals. By using branding strategy, the
company has become the biggest company with the highest capitalization. This strategy focuses
on the emotions and feelings of the customers for providing satisfaction to them (West & Mace,
2010). By using this strategy, the company can reach its target audience to increase the profit and
revenue of the company.
Now it is assumed that Apple is becoming a well-known brand by using unique and
dynamic strategies around the world. It helps to evaluate the plans, policies, and strategies of the
market competitors globally. A strategy is a tool for the Apple to increase and maximize the
growth and revenue in near future. It helps to maintain sustainability in the organization as well
as the environment (Johnson, Li, Phan, Singer & Trinh, 2012).
Apple Inc, sales since 2007
(Source: https://www.statista.com/statistics/276306/global-apple-iphone-sales-since-fiscal-year-
2007/)
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Global economic environment and marketing
Impact of the company’s strategies on consumer behavior
Apple uses effective and dynamic strategies for providing satisfaction to the customers in
the world. By using various types of strategies, the company is able to know the purchasing
power and behavior of the people. It helps to know and evaluate the human needs globally. The
company provides great customers’ services to the people to attract a maximum number of
customers in the market (Kunz, Schmitt & Meyer, 2011). These strategies provide various
benefits to the customers. The people can easily rely on the company and they are able to
maintain good contact with the company. It helps to maintain a good relationship with customers
across the world. If the company uses unique strategies then people get good quality of the
products and services. It fulfills the basic needs and requirements of the target market. There are
great impacts of the company strategies on consumer behavior. In today’s era, people are
becoming more aware while buying the products of the Apple. It is one of the significant benefits
of the Apple strategies. With the effective strategies, the customers are able to differentiate
Apple products from the competitor’s products which are existed in the market (Verhoef,
Lemon, Parasuraman, Roggeveen, Tsiros & Schlesinger, 2009).
By using effective strategies, Apple is able to make a good and attractive image in the
market. Thus, it affects the purchasing power of the consumers and they can get various benefits
globally. The people can take brand experience by using apple strategies (Solomon, Russell-
Bennett & Previte, 2012). Apart from this, the company uses marketing mix strategies to
generate more revenue and profit in the world. The company is fixing the suitable and
appropriate prices of the products. Therefore, the consumers can buy the apple phones and other
products at reasonable prices around the world. The marketing strategies are the tool for the
company to provide satisfaction to the consumers across the world. Along with this, the company
must evaluate and analyze the factors which affect the buying behavior of the consumers around
the world Johnson, Li, Phan, Singer & Trinh, 2012).
The consumers play a vital and integral role to increase the revenue and profit of the
company. None of the company can expand and explore its business without potential consumers
across the world. Apart from this, the company uses apple brand to become successful and
compete around the world (Verhoef, Lemon, Parasuraman, Roggeveen, Tsiros & Schlesinger,
2009). It will also help to increase the demand for the Apple products in the global market.
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Global economic environment and marketing
Apple Inc. strategies provide guidance and support to the customers to take unique decisions
while buying the products of the company. The customers build and develop effective
communication and collaboration with employees of the Apple. Further, the company uses
effective and dynamic promotional and advertisement strategies to increase and enhance the sale
of the company. Through this strategy, the consumers can evaluate and analyze the prices and
quality of the products. They can easily differentiate the Apple products in the global market
(Chang & Lin, 2010). Now it can be said that apple strategies provide various benefits to the
consumers.
Macro environment of the Apple
The macro environment affects the trading activities and operations of the company.
Steve Jobs is the man behind the growth and success of the company. The company cannot
control the macro environmental factors. If the company wants to overcome the competitors then
it should focus on the external environmental factors. This analysis provides long-term
competitors advantages in the market. Apple is one of the biggest recognizable and visible
consumer electronics brands in the world. PESTLE analysis is done by the company to beat the
competitors across the world. PESTLE analysis consists political factors, economic, socio-
cultural, technological, environmental and legal factors. The pestle analysis has been discussed
below (Khan, Alam & Alam, 2015).
Political factors: These factors influence the business activities and operations adversely.
Hence, these factors must be controlled and managed by the Apple. Income inequality and
discrimination are the major political factors which affect the trading activities negatively. Along
with this, political and social conditions in China are also major concerns which disturb the
manufacturing cost of the company. Thus, the company should evaluate the political factors to
enhance and increase the working capacity of the employees (Porath, MacInnis & Folkes, 2010).
Economic factors: Labor costs are increasing in China which reduces the cost of the Apple
products. Therefore, middle-class people are not able to buy the products of Apple. Economic
factors include labor cost, interest rate, unemployment trends, and stock market trends. The
company must focus on these factors to generate more revenue around the world (Azim &
Hassan, 2013).
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Global economic environment and marketing
Social factors: These factors play a significant role to satisfy the needs and requirements of the
customers across the world. These factors include attitudes, behavior, feelings, thoughts, culture,
and values. The company must analyze these factors to beat the competitors in the market.
Environmental factors: These factors also affect the growth and success of the company.
Weather and climate changes and water pollution are the main environmental factors that affect
the trading activities of the Apple. These factors must be managed and controlled by the firm
(Porath, MacInnis & Folkes, 2010).
Technological factors: Technological factors are subsequently shown in the macro
environment. Being the innovator and effective leader, Apple needs to focus and identify the
technological factors to gain the advantages of the innovative and unique technology across the
world (Perkins, 2012).
Legal factors: These factors include rules, regulations, and policies which are imposed by the
government while working in the market. It affects the efficiency and productivity of the
company. The company must measure the legal factors to gain the competitive advantages
around the world (OHern & Rindfleisch, 2010).
(Source:http://www.dineshbakshi.com/igcse-business-studies/external-influences/revision-
notes/265-external-environment-factors)
Now it is assumed that Apple is a well-established firm which is operating trading
activities and operations for more than 40 years. It is not only famous for innovative products but
also with its marketing strategies. Along with this, porter five forces model, SWOT analysis, and
PESTLE analysis must be done by the company to gain the competitive advantages in the world.
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Global economic environment and marketing
By using PESTLE analysis, the company can take various growth opportunities. Apple can fulfill
its long-term mission and vision with maintaining sustainability at the workplace. It also helps to
measure the expectations, needs, and desires of the consumers across the world (Andajani,
Hadiwidjojo & Rahayu, 2014).
Conclusion
On the above aforesaid information, it has been concluded that Apple Inc. is one of the
biggest brands of the latest technology. The company is rendering various unique and effective
products to the customers across the world. Apart from this, various growth and corporate level
strategies are used by the company to evaluate and analyze the plans, strategies, and policies of
the competitors. These strategies also provide several benefits to the consumers in the global
market. Apart from this, the company must focus on the marketing strategies to gain the benefits
in near future. Pestle analysis is done by the Apple Inc. to control the external factors around the
world.
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Global economic environment and marketing
References
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