Success Strategies for Apple's International Marketing - BK005

This report provides an in-depth analysis of Apple's international marketing strategies, focusing on its expansion into the global market. The report begins by differentiating between domestic and international markets, using PESTLE analysis to compare the United States and New Zealand. It then examines Apple's contribution to the global economy, highlighting its role in job creation and investment. The report explores the Born Global theory as it applies to Apple and analyzes the challenges and benefits of licensing as a mode of entry into foreign markets. Furthermore, it identifies current trends in international marketing, emphasizing the importance of customer engagement, cultural sensitivity, and economic considerations. The report concludes by evaluating marketing opportunities in the Asia-Pacific region, suggesting New Zealand as a strategic entry point for broader regional expansion. The report underscores the importance of cultural and economic factors in Apple's international marketing endeavors and the need for the company to address the limitations of its licensing approach.

Running head: SUCCESS STRATEGIES FOR INTERNATIONAL MARKETING
SUCCESS STRATEGIES FOR INTERNATIONAL MARKETING
Name of the Student
Name of the University
Author Note

1SUCCESS STRATEGIES FOR INTERNATIONAL MARKETING
Executive Summary
The report aims to develop the fact about international marketing strategies that Apple needs to
focus onthe expansion of its business. This report shows that to expand business in Asia Pacific
region New Zealand is the best country to look out for than any other countries. In this report it
has been specified that through New Zealand Apple can reach most of the Asia-Pacific countries
that it looks for. Born Globalshas been given stress as the international marketing theory
followed by Apple. Licensing although has been followed by Apple as the modes of entry to
enter foreign markets its default has been brought into notice which the company needs to settle
at the earliest. The report concludes that Apple must look for culture and economy of the country
before making a step forward to develop its presence in the international market.

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Table of Contents
Introduction......................................................................................................................................3
1a. Analyzing differentiation between international and domestic market.....................................3
1b. International marketing’s contribution to the global economy..................................................7
2a. Analyzing internationalizing theory..........................................................................................9
2b. Challenges and benefit of modes for international marketing...................................................9
3. Trends in international marketing..............................................................................................10
4. Evaluating opportunities for marketing in the region of Asia-Pacific.......................................12
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

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Introduction
Globalization has opened the door for most of the organizations to expand their business.
Looking at the present perspective of marketing most of the renowned companies not only
develop their strategies for marketing but to develop help the economy from a global
perspective. This report is going to look at the domestic market of The United States of America
and the international market of New Zealand for Apple. Challenges and benefits of the modes for
international marketing will also be looked at in this report along with the trends that have been
adopted by Apple to develop strategies of marketing internationally. Evolving opportunities for
marketing in the Asia-Pacific region will also be looked at in this report.
1a. Analyzing differentiation between international and domestic market
Factors Description Impact
Political Second largest democarctic
country in the world; The
country is Governed by the
President; Policies of the
country and the state is
clearly defined in the
constitution; Political
environment of the country is
very stable
Positive
Economic Largest economy in the
world; Most of the globally
renowned companies incepts
Negative

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from the country; Labor cost
is high in the country; The
country holds the title of
economic superpower;
Unemployment rate is
medium
Social The country is the third most
populous country in the
world; Most of the
population in the country are
aged; The country has a
mixed population; Racism is
still in practice in the country
although people has the
liberal mindset
Positive
Technological The country ranks first in
development of science and
technology; Globally the
country is the leader in the
field of science and
technology; new twchnology
has been adopted by the
Positive

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country till date
Legal The crime rate is high; Each
business is carried out by the
rules and regulation of the
county; National andforeign
treatment is done in an equal
manner
Positive
Environmental The climate is very diverse
and is spread geographically;
Environmental laws are very
strict in the country; The
country faces most of the
toughest weather condition
Negative
Table 1: Pestle Analysis of The United States of America
(Source: As influenced by Mckinley, Radcliffe and Mukundan, 2013)
Factors Description Impact
Political Democratic country with a
stable Government; After
three years changes made into
the rules and regulation due
to change in Government;
Strict labor laws and high
rates of lending; trading
freedom is given to
Negative

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companies
Economic Economically the country is
stable; Population is around 7
million and that every needed
thing is available; The
inflation rate is low with less
number of unemployment;
First-time business need to
spend huge capital
Positive
Social Good business tie-ups with
other countries; FDI is
welcome by the country; the
rate of literacy is 100% and
the rate of life expectancy is
81.
Positive
Technological IT products are made into use
in the urban and rural areas;
IT companies provided an
emerging market in the
country
Positive
Legal Rate of crime is very low
except the Christ Church
incident; Government helps
Positive

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companies to develop their
marketing in the country;
Association of the third party
is a punishable crime under
the law
Environmental The ecological system is very
unique; technology has been
used to deal with the
garbages; Environmental law
is very strict and that all the
companies need to follow
Negative
Table 2: Pestle analysis of New Zealand
(Source: As influenced by Bayne et al. 2017)
Apple which has international fame will definitely develop its market in New Zealand.
New Zealand welcomes most of the companies that are technologically spund and that has a
global recognition. As opined by Schickl (2013), one of the biggest advantages of having New
Zealand is that Apple will get the required customer that has been of need for the development of
the market. New Zealand and USA, on the other hand, have a good business relation and that
help from both the Government will help Apple.
1b. International marketing’s contribution to the global economy
Apple, after its inception in the global market scenario, has been trying hard to make a
contribution to the global economy. Steve Jobs, who has been the founder of the world’s largest
selling smartphone has initiated to drive the economy by contributing employment as a means of

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helping the world economy. As opined by Knight&Liesch (2016), after the recession that hits the
economy at large most of the renowned companies have taken the initiative to help in developing
the economy of the world among which Apple holds the first position.
The company made sure that the distribution center will not be located in a single
country. All the management of the company is to open different centers of production from
where the smartphone of the company has been manufactured. Apple appoints only the local
people of the country to handle the entire production and made sure that it will not be interfered
with by other people. This is one of the factors of the contribution that Apple has taken initiative
to help in the development of the world economy which is exceptional than the others.
Apple always looks for developing the economy of the world and for that different
strategies have been taken by the company at times. Taken the present scenario of business then
it is found that the company has now been investing a part of its profit for creating jobs. As
opined by Teece, Peteraf and Leih (2016), if a company that has its presence all over the world
does not invest in the economy then it is not possible to develop the economy that has been of
requirement. Apple takes the initiative in a serious note and invest according to manner
Apple among the different factors of contribution specializes in these two factors as it
allows the company more to help the global economy. Investment has been made by Apple to
make sure that the economy is running in a smooth manner. These ways can be taken as one of
the strategies taken by Apple to develop its market internationally. According to Kozlenkova,
Samaha and Palmatier (2014), multinational companies in this way make it possible that they are
helping the economy and that they make it sure by no means this could create an impact.

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2a. Analyzing internationalizing theory
Apple has been renowned all over the world and that the smartphone has been used as a
status symbol by most of the people. Among the different theories that have been used for
developing an idea of internalization, Born Globalsgoes appropriate with Apple. According to
Taylor and Jack (2013), forms that have the mindset of expanding their business all over the
world follow the theory of Born Globals. Apple after its inception follows internalization to
expand its market in a global manner and for that, they use resources that are knowledge-based.
Another thing that has been taken into consideration by the management of Apple is the changes
developed in the global market scenario.
Apple enters into the global market with a single product, Apple Smartphone. The
strategy followed by the company is that the company develops manufacturing units in most of
the countries and that makes a presence with the retail outlets. The company at present recently
implemented the process of Licensing as part of its internationalization. According to
Baronchelli and Cassia (2014), licensing is an arrangement of a contract between a firm and a
foreign company where foreign companies provide a license to the firm in exchange for some
fees of royalty, as entering the market becomes impossible due to political differences.
2b. Challenges and benefit of modes for international marketing
Licensing is the mode that has been taken by Apple to enter into the foreign markets. In
most countries, it is not possible for Apple to develop the market and as the brand is renowned
and the management wants to widespread the product this policy has been taken into
consideration. As opined by Acs and Terjesen (2013), as the product development company and
the firm knew each other very well this strategy will not create any kind of problem for entering

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the markets. In most of the countries where Apple does not make the market, the company sells
its product through the means of licensing and that the trademark logo of the company has been
outlined in most of the agreements.
One of the biggest advantages of adopting the licensing system is that by having this,
Apple can make its income in a passive way which helps the company to add value to the
financial resources. This kind of entry mode opens new opportunities for business and that Apple
can make its mark in almost every part of the world where it is really not possible for the
company to get the market. As opined by Hollender, Zapkau and Schwens (2017), Apple's
strategy of licensing has helped the company not only to make its presence in the foreign market
but make a status representation.
Still, this kind of marketing strategy is not completely free from threats as there are issues
relating to theft. Most of the companies that adopted for licensing with Apple found not to have
any kind of legit way of conducting the operations. Mainly in third world countries and in
developing countries, there is a huge demand for Apple products where licensing is really a good
strategy for developing the business but it creates the competition more complex. Another thing
that can be brought into notice is that getting fees of royalty takes most of the time and that if
pressure is provided then it may affect the brand name.
3. Trends in international marketing
International marketing trends have been used by companies according to the present
condition. Most of the time it has been found that according to the company it differentiates.
Apple which has been the renowned and most used smartphone in the world has used different

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marketing trends to develop its brand from a global perspective. With the passage of time, there
is a change in the marketing trends and that the marketing trends that create an influence are:
 Engagement of customersfrom a global perspective: According to this trend of
international marketing managers of an organization must give importance to the aspects
of culture and economy. Apple has its branch all over the world and that the managers do
not give it a preference to segment the customer according to the culture they belong to
and the economic condition they have. As opined by Leonidou et al. (2017), culture and
the economic condition help in developing an idea of the customer purchasing behavior.
In most of the developing countries where Apple has its presence, the cultural
background of the people needs to be looked at along with the economic condition so that
they can make further developments. Informing the buyers: Most of the people get to know of the recent development through
television advertising or through the hoardings or by getting information from other
people. Apple needs to develop make sure that most people get to know of the
development that it is going to bring. This will influence Apple by getting the new
customer who does not use the smartphones manufactured by the company. As opined by
Katsikeas (2018), Apple needs to get in touch with the mobile service operating
companies and made sure that there are SMS bursts so that people can get to know of the
new devices that the company brings into effect.
Among the different types of international marketing trends, these two trends are of
importance for Apple to develop its market internationally. Apple has the most expensive
smartphone sets and abides by these two trends of international marketing help the company
to reach most of the customers and develop the market that has been of their need. According