Case Study: Apple's Market Entry and Risks in Myanmar - BMM5312

This case study report analyzes Apple's potential expansion into Myanmar, focusing on internationalization strategies, market entry modes, and potential risks. The report outlines Apple's business model, its rationale for entering the Myanmar market, and a PESTLE analysis of the target country. It identifies the target market as individuals aged 15-60 and discusses reasons for internationalizing, such as accessing a broader market and improving brand image. The report explores various entry modes, including joint ventures, licensing, and wholly-owned subsidiaries, and assesses potential risks and strategies for risk management. The conclusion emphasizes the opportunities and challenges Apple faces in Myanmar, highlighting the importance of adapting to the local environment and mitigating potential risks to ensure successful market entry and sustainable growth. Desklib provides this assignment solution along with numerous other resources to assist students in their studies.

PRINCIPLES OF INTERNATIONAL
BUSINESS
CASE STUDY REPORT
BMM5312
1

EXECUTIVE SUMMARY
International business is defined as activity which is used by business concern for the
purpose of growing their business. Internationalization is the process and action of making
something international and across borders that can help to operate the business effectively.
The aim of business concern is to grow their business by entering into new country and
market that can help to the development of the organization. The aim of organization is to
attain competitive advantages by expanding its business at different country and location. The
current report is based on international business where Apple is planning to move in to
Myanmar for increasing business activities and profits effectively. The report is going to
conclude how Apple is using internationalisation practices, way of entry mode, and risk that
might be occur while entering into new market.
2

Contents
EXECUTIVE SUMMARY .......................................................................................................2
INTRODUCTION......................................................................................................................4
An outline of the company, their internationalisation and market entry strategy, and
rationalisation for the move that you are investigating. ............................................................4
Target market and industry analysis...........................................................................................6
Reasons for internationalising....................................................................................................6
Entry Mode ................................................................................................................................7
Potential risks and strategies for risk management....................................................................7
CONCLUSION .........................................................................................................................8
REFERENCES...........................................................................................................................9
3

INTRODUCTION
International business refers to the trade of goods, services, technology, capital, and
knowledge across national borders. This is important for each organization to grow their
business by bringing new strategies and planning that can help to develop organizational
productivity and profitability. International business involves cross-business transactions of
goods and services between two or more countries that can help to improve the brand image
and give competitive advantages. To understand international business, Apple has been taken
that is an American multinational technology company, specializes in consumer electronics,
computer software, and online services (Alsaad and Taamneh, 2019). This is large size
organization, sells different types of electronic products at different locations and across
borders. The company is planning to expand its business in a new country is Myanmar that is
a Southeast Asian nation. This can help to increase business activities and performance by
managing all functions and activities. The present report is based on a case study that
involves internationalization, market entry strategy, market selection, and potential risk as
well as strategies for risk management.
An outline of the company, their internationalisation and market entry strategy, and
rationalisation for the move that you are investigating.
Apple is an American multinational technology company that specializes in consumer
electronics, computer software, and online services that can help to attract customers at an
international level. The reason for moving into a new country is to expand its business
activities and increase profitability. The company wants to enter in to Myanmar is having
large number of population and GDP rate is increasing that signified to operate business in
such country would be good opportunity to grow a business in global market. Apple is
operating its business in more than 25 countries with 516 stores worldwide that increase
customer base and increase sales. The company is planning to move to Myanmar by
introducing electronic products that will help to improve brand image and increase
organizational sales. The reason for selecting this country is having a high population and
safe personal security that will help to increase business activities and performance. This
would help to attract the number of customers and encourage them to make buying decisions.
The product line of Apple is Mac, iPhone, iPad, Apple Watch, Apple TV, Airtag, iPod, and
others that maintain the best quality and high cost. This influences the number of customers
and improves brand image in changing environment (Alsaad and Taamneh, 2019).
Target Country/Market selection – For each organization, it is important to operate
its business by selecting an effective and target market that helps in the development of the
business industry. If an organization has not analysed the environment, then it will be
difficult to run a business. The reason of selecting Myanmar is people of such country
demanding such brand as it is well known brand and providing unique services. The GDP
rate of Myanmar is stable where people wants to move towards high lifestyle. This market
will help Apple to research targeted customers and improve brand image by offering better
4

quality of products. Apple is a multinational company that is planning to move into Myanmar
with its electronic products and services. To enter into new market or country a PESTLE
analysis has been conducted that defined below:
Political factor – Myanmar is the larger country where the government is stable and
supports FDI that is an opportunity for the organization to operate their business. Moreover,
political climate of Myanmar is stable where government give permission to new entrance to
operate their business effectively. Apple is moving its business into Maynmar that would
impact positively as it could operate its business in changing environment and satisfy their
customers with quality that increase organizational sales (Prud’homme, 2019). Ethic
cleansing also founded in Myanmar that will help to grow a business continuously.
Economical factor – Myanmar is a free country as the economy estimated to have
grown by 1.7 percent in the year 2019. The inflation rate of Myanmar is average that could be
an opportunity for Apple to move its business into a new market that can help to develop the
organizational sales and productivity effectively. This would help to operate the business in a
new country by offering new electronic products and services. This will help to gain the
competitive advantages as its electronic items are unique and well designed that would
attracts customers and encourage to buy (Alsaad and Taamneh, 2019).
Social factor – The relation of social factor is with Hofstede’s cultural dimension,
religion, lifestyles, attitudes towards a product, equality, and corruption perception in a
particular country that affected business. By analyzing the Myanmar culture and lifestyle of
residing people it has been analyzed that to operate or open a store in such a country could be
challenging as people do not respond towards new products and brands. This can affect
organizational productivity and profitability negatively (Basco, 2018). The organization will
also focus on cultural factor such as social behaviour, customs, and ideas that influence
people to buy products.
Technological factor – This factor is related to new technology, innovation, and skills
used by business concerns for the purpose of introducing new products and services in
changing environment. Apple is highly active in the use of new technology and innovation
where it launches new electronic items year by year. This could be a good opportunity for the
selected organization to expand or increase its supply chain with the help of new technology
that impacts positively and develops organizational performance. This also helps to attain
business goals and productivity by improving technological landscape of Myanmar as people
are educated and ready to work in changing environment by accepting new technology and
innovation that develop business performance.
Legal factor – This factor encompasses rules and legislations that need to follow while
operating and affected productivity. This is important for each organization to focus on
external as well as changing environments by the following legislation. In relation to Apple,
different laws and regulations need to follow while moving its business into Myanmar such
as Health and safety 1974, data protection, product regulation, Intellectual property, and
Energy consumptions that would be an opportunity to grow their business in a new country
5

and increase the organizational productivity. Intellectual property law rating of Mayanmar
on the IPRI is higher which followed by Apple by using Trademark that can help to create its
product different from other brand and influence people to buy such product. details .
Environmental factor - This factor is related to environmental aspects such as waste
disposal laws, environmental protection laws, and others that need to follow by the
organization for running their business. Apple is planning to expand its business in Myanmar
where it follows all environment-related rules and regulations such as minimum wastates,
low pollution, CSR regulations, and others that support increasing existing business that helps
to grow a business continuously (Bowie, 2019).
From the above, it has been analyzed that Apple could operate or expand its
business in Myanmar country that is a new country will help to attract a number of customers
and offer kind of products and services. The management analysis the environment and
market of such country that provides an opportunity to grow their business and maintain
higher performance effectively. The management needs to arrange various resources such as
capital, human being, assets, and equipment that would help to operate a business and
develop organizational performance.
Target market and industry analysis
To have a target market is an opportunity for the business industry as it influences a
number of people and provides different types of products and services. Apple is an
American multinational technology company that sells consumer electronics, online services,
and computer software with new technology, and features help to increase business
organization and develop higher productivity. The target market for Apple organization in
Myanmar is people between the age group of 15 to 60 years old as per their lifestyle. This can
help to maintain a high brand image in changing environment and support the development of
an organization's business (Casson and Wadeson, 2018).
Reasons for internationalising
It has been seen that internationalization has become one of the key elements for a
firm as it helps to see future perspectives by managing all functions and following
international regulations. If a business is competitive at the local level, then it thinks about
going international for generating more competitive advantages. This is important for
management to conduct industry analysis and make decisions to go at the international level.
The main reason to go internationalization is it grants a true interdependence from the local
market business cycles permits to access a broader market and also helps to improve the
general image. Apple runs its business in more than 25 countries and also planning to move
to Myanmar for enhancing its productive capacity, and improve brand image between people.
The organization provides high-quality electronic products with new technology or
innovation that can help to maintain a good lifestyle ( Drummond Jr, 2021).
6

Entry Mode
The entry mode is defined as the ways in which a company can expand its services
into non-domestic market. An organization aims to go internationalization so it needs to
select effective mode of entry that can help to operate a business across boarder and increase
organizational productivity. This is important for each organization to analysis the different
way and modes through which they can enter in new market and increase organizational
sales. In relation to Apple, to go international or operating business in Myanmar could use
effective way of entry mode that are as explained:
Joint Venture – A joint venture encompasses two or more businesses pooling their
resources and expertise to achieve a particular goal. If a business wants to expand its
activities, then can focus on joint venture which support to develop potential for growth and
innovate new ideas to grow their business. Apple can be use Joint venture by sharing their
business with partner channel that can help to operate a business effectively by managing all
functions and activities. To opt this mode, it has to select a partner which can help to grow a
business continuously (Green, 2018).
Licencing – This is the form of expanding business in to different location and
country with the approval of owner who have established the business. This can help to
operate and expand the business by managing all functions and activities. In relation to
Apple, to expand its business into Myanmar can make the use of franchise that would help to
develop the organizational activities and performance (Gereffi, 2019).
Wholly own subsidiary – This is another model of entry could be use by business
concern for expanding and move into other country. This can help to develop organizational
productivity and profitability in changing environment and maintain higher performance.
This is based on size and location of facilities that can use by Apple to go across boarder and
improve business profitability.
From the above it has analysed that Licencing strategy is preferred by Apple as
market entry in Myanmar. Herein, it allows or give licence to business concern for
distributing its products and services. The management has follow OLI theory to go
internationalization. This framework refers to ownership, location, and internationalization
that allows company to expand business with the support of foreign direct investment. This
will help to grow a business by managing all functions and activities (Perlmutter, 2017).
Potential risks and strategies for risk management
While going internationalisation it is important to analysis the environment and market
that can help to know what risk might be arises and how it could be overcome. Apple is
planning to move its business into Myanmar by arranging all resources and capital. At the
time of market analysis different risk has risen such as social and economic and
environmental factor. It has been seen that changing in culture and increasing inflation rate of
Myanmar could create the challenge for Apple to establish its business in to new market.
Moreover, there are different environment rules and regulations in selected country that needs
to follow where it can reduce the productivity and profit ratio. Apart from environmental risk,
7

foreign exchange risk, political risk, shipping, ethics risk, and intellectual property risk might
be occurring while running or expanding its business into new country. This could affect the
organizational productivity and profitability negatively (Hahn and Ang, 2017).
Risk management
To establish and reducing risk in relation to international business there are different
ways which can be used to manage risk and develop business performance. The strategies for
risk management defined below:
To crate good relationship – To operate a business in another country and location
there is need to have good relations with country that can help to understand culture and
social aspects so that a business could operate effectively. Apple will use CRM approach to
maintain good relations with Myanmar that will help to attracts customers and increase
production (Killing, 2017).
To use effective marketing channel – To create awareness between people there is need
to have good marketing strategy that can help to reach targeted people and improve sales.
Apple can use effective channel and digital marketing to reach their customers that can help
to develop organizational productivity and profitability.
Preparation of effective budget – The management of Apple needs to develop effective
budget by concerning all income and expenses that can help to develop organizational
productivity and profitability by launching new products.
To follow government regulation – While entering into new country there is need to
follow regulations which have been made for business industry that can help Apple to move
their business activities in Myanmar. This could help to develop organizational productivity
and profitability (Perényi, 2018).
CONCLUSION
From the report it can be concluded that to trade goods and services across nation or
local country is known as international business. This can help to develop business activities
and performance across the globe. Apple also can improve its brand image by moving in to
international country for distributing its technical products and services. The management
will conduct market analysis and formulates effective business strategies to overcome risk
and develop business performance.
8

REFERENCES
Books and Journals:
Alsaad, A. and Taamneh, A., 2019. The effect of international pressures on the cross-national
diffusion of business-to-business e-commerce. Technology in Society. 59, p.101158.
Basco, R., 2018. Family business in emerging markets. In The Oxford Handbook of
Management in Emerging Markets.
Bowie, N. E., 2019. International business as a possible civilizing force in a cosmopolitan
world. Journal of Business Ethics. 155(4), pp.941-950.
Casson, M. and Wadeson, N., 2018. The economic theory of international business: A supply
chain perspective. In The Multinational Enterprise. Edward Elgar Publishing.
Drummond Jr, A., 2021. Enabling Conditions for Organizational Learning: a study in
international business ventures (Doctoral dissertation, Centre for International
Business and Management).
Gereffi, G., 2019. Global value chains and international development policy: Bringing firms,
networks and policy-engaged scholarship back in. Journal of International Business
Policy. 2(3), pp.195-210.
Green, R. M., 2018. Religions and the Ethics of International Business. In Explorations in
Global Ethics (pp. 237-252). Routledge.
Hahn, E. D. and Ang, S. H., 2017. From the editors: New directions in the reporting of
statistical results in the Journal of World Business. Journal of World Business. 52(2),
pp.125-126.
Killing, J. P., 2017. How to make a global joint venture work. In International Business (pp.
321-328). Routledge.
Perényi, Á., 2018. European business: A literature review. The Routledge Companion to
European Business, pp.9-28.
Perlmutter, H. V., 2017. The tortuous evolution of the multinational corporation.
In International Business (pp. 117-126). Routledge.
Prud’homme, D., 2019. Re-conceptualizing intellectual property regimes in international
business research: Foreign-friendliness paradoxes facing MNCs in China. Journal of
World Business. 54(4), pp.399-419.
(Alsaad and Taamneh, 2019) (Basco, 2018) (Bowie, 2019) (Casson and Wadeson, 2018) (
Drummond Jr, 2021) (Gereffi, 2019) (Green, 2018) (Hahn and Ang, 2017) (Killing,
2017) (Perényi, 2018) (Perlmutter, 2017) (Prud’homme, 2019)
9