Strategic Marketing Report: Apple Inc.'s Strategic Expansion in Africa

This report offers a strategic marketing analysis of Apple Inc.'s potential expansion into the African market with its iShoes product. It begins with an executive summary and introduction, then recommends the iShoes product and analyzes the macro-environment using PESTLE analysis, highlighting opportunities and threats. The report then critically assesses three market entry modes (exporting, licensing, and mergers/acquisitions), recommending the most suitable options. Furthermore, it applies marketing concepts such as market segmentation and targeting to identify potential customer groups. Finally, it applies Porter's generic strategy to determine the best competitive approach for Apple in the African market. The report concludes with a summary of findings and a list of references.

STRATEGIC
MARKETING

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................2
Recommend a product and service and a country and provide macro environment analysis to
explaining the possible opportunities as well as threats on market perspective. .......................2
TASK 2............................................................................................................................................4
Critically asses three modes of market entry that could be suitable for business. Provide
proper Justification......................................................................................................................4
TASK 3 ..........................................................................................................................................6
Applying marketing concept of market segmentation and targeting..........................................6
TASK 4............................................................................................................................................7
Apply porter's generic strategy....................................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES..............................................................................................................................10

EXECUTIVE SUMMARY
This essay project is related to strategic marketing that is an effective tool to the
organisation because it helps in planning, developing and implementing activities to manage the
competitive environment within the business industry. A marketing consultant of Ashanti
marketing solutions can recommend the Apple Inc. to enhance the market operation within
Africa with their new launching of products that helps in targeting the new market and gaining
the higher profits and revenues so that they can survive for a longer period of time. IN this
consultant can foc us on analysing the business environment of Africa by using PESTLE analysis
because it helps in easily understood the market by using several factors that is helpful in gaining
higher customer base with high profits. It helps in capturing the opportunities and removing the
threats so that best results can be face by the Apple. Further they focus on market entry modes
and focus on market targeting and segmenting. At last using the porter's generic model so that
best strategy can be taken out to sustain in the new market.
INTRODUCTION
Strategic marketing refers to that activity of the organisation which is helpful in planning,
organising and directing the different activities so that business enterprise may achieves their
target to sustain in the competitive market. In this they can focus on providing the best strategy
to the company which is profitable to the growth of the business venture. This report is based on
the Apple INC. that is one of the largest company in the world that deals basically in electrical
appliances but now they want to expand their operations in the market of Africa with new
product line that is entering into the shoes manufacturing market. This helps the company to
enhance their market share and growth. This report includes PESTLE analysis for understanding
the condition of market and also analysing various modes of marketing entry so that choosing the
best one for company to enter into the Africa market. Further it includes the market segmentation
and market targeting to attracts the large base of customers for the organisation in the new
market. At last it involves the porter's generic model that helps in adopting the best strategy to
enter into new market so that high growth and profits can be attained(Alao and et. al., 2020) .
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Task 1.
Recommend a product and service and a country and provide macro environment analysis to
explaining the possible opportunities as well as threats on market perspective.
Overview of Company:
Apple Incorporated is an American based multinational technology company headquarter
in Cupertino, California that develops and deals with consumer electronic, computer software
and online services(Anderson and et. al., 2020).
Recommended Product:
The new product and service is suggesting for Apple company as iShoes product, as its
objective is by providing step count digitally through connected with iWatches and iphones.
Macro environment: It refers about condition that having presence in economy as whole
rather than in particular sector or region. In general, the macro environment includes trends
GDP(Gross Domestic Product), Recession, Employment and fiscal policy.
Pestle Analysation: It is framework or tools which utilise and monitor the macro
environmental factors that may assorted by having an impact on organisation performance. To
utilising of macro environment by Apple Inc. they can use Pestle analysis for establishing their
new venture or product iShoes in Africa region (D’Souza and et. al., 2019). Political: it is factor which determines of government having influence the economy or a
certain industry. The factor of political involves tax, policies, foreign trade tariffs etc. As
Apple wants to establish its new product iShoes in South Africa digital market where
company have to faces more protest, violence and interolrance through this it can reduce
growth of Apple. But there are more investors which can help to generates more business
and it can be benefits to Apple to trade in Africa. The policies of Africa country is more
complexity to adopt as foreign policy and taxation are highly used in organisation(Dogu
and Albayrak., 2018). Economical: In this factor determines of an economy performances which having direct
influence on organisation growth for short and long term aspects. Certain elements are
involved inflation, recession, employment rate and foreign exchange rates that increase
the growth of economy. As Africa region is considered 34th largest economy in around
the world in context of GDP and South Africa is one of high export of gold, diamonds,
platinum, along with high machinery equipments. For Apple iShoes perspective, there is
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vast scope of enhancing new product to introduced huge economy can bring more
customer retention. But Apple is premium company they need pay high Corporate tax
Rates. Social: According to this factor emphasis about certain social environment factor which
may effect to culture trend, demographic and population analytics. As Africa's social is
having high unemployment rate as well as having low currency value of Rand with 25%
affect towards buying and selling of people. Many entrepreneurship business people are
there in which Apple iShoes can approach Brazil and Cape town sector to gain more
customer. But in there are less buying capacity which can reduces growth and
revenue(Hunt, 2018). Technology: Through this factor depicts new utilisation of innovative resources which
can create impact on operations that bring market favourable and unfavourable market. In
Africa there is low employment rates within manufacturing supply chain along with
decreasing value of Rand. But the value of technology is cheaper from other countries
like USA. This can be benefit to Apple iShoes brand to utilise low rate of equipments can
reduce their cost effectiveness. Environmental: Through these factor includes influences to surrounding environment.
The aspect of Pestle for crucial on certain industries which helps tourism, farming, and
agriculture etc. Some of factors relate with business environment analysis involves but it
not in limited region which changes climatic, weather, geographical location that
fluctuates climatic changes. As in Africa there is low risk of environment where Apple
iShoes having more scope to invest and there is less risk of climatic condition which is
one of other factor towards company.
 Legal: The factor which contains both external and internal sides where there are certain
laws that affect business environment in countries policies that helps to sustain company.
Africa laws is implement from United Kingdom legislation firms where they have only
focuses on Value Added Tax(VAT). Apple iShoes can easily follows Africa legislation
and enhance some labour laws in their business that could prevent more long term
stability (Varadarajan., 2019).
Above Pestle analysation summarise that political social and technological can creates
barriers for Apple iShoes in terms of growth, business expansion, not having optimum
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employment in Africa and uses of technology not considered up to the mark. But positive side
Economic, legal and environmental can provide more positive outcomes as in low taxation, easy
to adopt and follow legislation and low risk of climatic changes can increase the growth of
Apple iShoes business. The further information about Pestle is having objective to gain higher
outcomes for better way of provide external base of information related with business that
effectively acquire more Apple new product as they can prepare for iShoes to effective compete
within competitive marketplace for gaining positive outcomes. Some of positive and negative
factor is highlight that Social, technological and environmental allows various business
opportunity to gain positive outcomes in terms of development, growth and goodwill in
competitive advantages. The negative factor would be attain through political and economical
due to Brexit marketplace that will not allows to trade in European Union Segment.
TASK 2
Critically asses three modes of market entry that could be suitable for business. Provide proper
Justification.
Market Entry is systematic planned which distribute and delivery method of goods and
services towards new focus market. It also specify import and export of services through which it
derives creates and establish and management of contracts in foreign country. As similarly, for
Apple company some of market entry can arises in term of three situational basis are:
Market Entry Mode: This term is also refers as Market Entry Strategies is having
systematic planned method delivering goods or services to considered target market and having
proper product distribution(Kaleka and Morgan., 2019). The process of importing and exporting
services, it depicts to establishing and managing activities of Apple iShoes in overall
international market. By determining three modes which support market entry: Exporting: It highlight practise as goods of marketing manufactures in one other
country into another. There is not having scope of direct manufacturing for any
particular country. By focuses to those organisation who are aggressive and also having
clarity of business related strategy involvement of product, price, promotion and
distribution and research elements. As for Apple and its new brand iShoes exporting
practise can measured on manager of Apple their decision making. Apple having
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excellence marketing promotion strategies where they focuses on awareness about their
product in international market(Malarvizhi., Nahar and Manzoor., 2018).
Advantages: The positive factor that benefits optimise towards gain exposure of new ideas,
management practises where marketing techniques towards getting competition to increase
competitiveness.
Disadvantages: There is extra cost involvement which market makes to consume time, it also
develop new promoting or marketing materials developing new packaging and assign for new
personal to undertaken other administration and operational tasks. Licensing: It mainly defines as method of foreign operation in which individual firm
agrees the overall condition as well as granting of permit where a existing company in
other country for using their manufacturing, resources, processing and trademarks to
acquiring proper licensor. It mainly involves expenses and more engagement of policy
in Apple iShoes also having their own license pattern. They focuses on technology and
brand name which they use it should be original. Apple has owned their product and
services patent, copyright as well as manufacturing equipment which is rare in digital
business segmentation. Managers or owner of company manufacture iShoes with
mentioning all licensing aspect as they want to trade in other countries or using their
resources to build business in more effective way(McCamley and Gilmore., 2018).
Advantages: It creates authorised or official owner of any particular aspect where it more focuses
on legal rights is reliable towards owning by individual person in effective manner.
Disadvantages: There is must effective control of licensing at the time of promotion, packaging
towards getting systematic selling of product and selling. There is also one factor of agreement
that contains high cost involvement for payment which highly depending as per basis of
agreement. Merger and Acquisition: In market entry perspective this form of strategy derives
about expansion of business. As other words, Mergers and Acquisition is generalise
term that is assort to describe assets related towards financial transaction with including
offer purchase of assets and management acquisition. This also makes understands of
firm acquired does not change its legal name or structure but it owns by parent
company. As Apple iShoes can approach for mergers and acquisition for more benefits
to sharing with goods and services with other company. For example: Apple has tied to
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merger with Vodafone plc for more network connectivity as well as to explore more
international market for attaining customers(Mishra., 2018).
Advantages: This helps to increase economics of scale through bigger firm in more efficient
way. Within more profit enable through better research and development.
Disadvantages: Increased the factor of market share that leads monopoly power within
influences for higher consumer benefits.
From above interpretation of Market entry three modes in consideration of Apple iShoes
product as they can opted many source to enter with new vision within their new product. As
they can enter in market by selecting strategy of Merger and Acquisition is because it can
provides many benefits to growth their product as well as business expansion worldwide. This
Mergers and Acquisitions will provides many benefit as to improvising quality staffs additional
skills where the knowledge about industry in sector of other business intelligence to accessing
valuable funds towards new development arises. For accessing through wider customer base
where it increasing current market share. Through approaching Mergers and Acquisition increase
the market power of Apple iShoes in digital sector, company can easily get utilise advanced
resources of technology which increase their mobility. More opportunities can prevails in terms
of investments and endorsements. Other factors such as minimization of risk from competitors
substitute products along with more tax benefits they get to payable on basis of income
generates. Furthermore Product diversification get leads to target market where they can sell and
distribute their own channels. By sharing of market budget through increasing of purchase power
get enhancement in complxive situation (Moutinho and Vargas, 2018).
The level of competition will be reduces in which share price of Apple product will
increase to gain more competitive advantages. Through Mergers of Apple, its product can be
expanded on new geographical areas where they operate their business venture in effective way.
Apple having opportunity to accomplish better economic of scale criteria as in collective to buy
optimum raw material which can result in cost reduction. By enhancement of investment in
assets can lead from over lower large output. Expensive Artificial based technologies can utilise
by Apple iShoes brand product for their effective manufacturing. Therefore, Pestle is helps to
better scanning about external challenges and opportunities which is consists towards get
measure through better competitive advantages in effective manner. As Apple iShoes is create
an plan to evaluate for approaching their new venture in United Kingdom in which they will get
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benefits towards for attaining better Social, technological, environmental and legal in terms of
provides about productive business outcomes which is enhancing to attain competitive
advantages as well as acquire customer, resources, expand in social development which expand
business to create benchmark.
TASK 3
Applying marketing concept of market segmentation and targeting
Market segmentation
This term refers to the dividing the heterogeneous market into the smaller and more
defined categories. In this manager of the business enterprise can divides the group and
audiences as per their homogeneous characteristics that is based on demographic, needs, location
etc. It is effectively analysed by the organisation management for dividing the customers into the
smaller groups and provides goods and services as per their needs and wants. In this company
can divide the market into the various ways for integrating the homogeneous group of people
into market(Ndofirepi., Farinloye and Mogaji, 2020).
In terms of Apple Inc. manager can do market segments by examine the preference,
needs and wants of the customers so that dividing them into smaller group would be easy. This
helps in gaining higher profits and revenues with more market share. In this the motto of the
Apple Inc. is to understand the customers preference within Africa market so that they offers the
products according to that. This term helps in enhancing the value of the resources. In this
organisation can segment the market on the basis of behaviour and demographic aspects. In this
Apple can focus on targeting those people who are brand conscious and also the health conscious
the Apple I- shoes are very sale in premium price so that only high elite people are attracted and
also who are health conscious like used to do walk to stay healthy. In this manager can also
create awareness within marketplace about the usage of the product specification so that
attracting their buying behaviour is easy and this helps in gaining higher profits and
revenues(Papadas and et. al., 2019). It creates more approachable for targeting customer through
demographic such as age, gender, caste, colour and religion these can make huge influence
towards getting identified suitable market for gaining high positive outcomes that get to enhance
more positive outcomes get attained. Some of market segmentation theory which can easily
utilise by Apple iShoes where they belief that each of segmentation of bond maturities which is
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consists through investor where they entitled to invest for short term securities in immediate or
long term. This long term benefits can provide positive impact towards Apple iShoes for better
attain as well as convince customer in order to their requirement.
Market targeting
Target marketing refers to that activity that helps the organisation to select the group of
customers within marketplace for targeting them towards the company products and services. It
is that market which play a significant role in the firm points of view because organisation can
get success by focus on fulfilling the targeted customers needs. In this company can decide the
price for their target customers and cost of manufacturing the goods and services etc. that will
helps in reflecting the value of the product in the eyes of customers. In this business enterprise
can also emphasis on transportation channel so that customer conveniently reach the product. In
this company can target the market on the basis of people status and their age.
As it is significant to target the customer market where organisation may establish their
operations for gaining profits and maximising sales in a small period of time. Further more, the
targeting customer is one of more important approach that enables towards get attain high
competitive advantages where it is one of important aspect after selecting suitable market that
helps to gain long term sustainability. Targeting is one main factor that mainly involves where to
identifying through overall prospective of buyers share that tends to in built where Apple can
utilise to selling as per assessing current marketplace view where marketing messages to enhance
to selling product and services. For customer motive company can easily target for better
benefits wants to remove stains need to different than to buying as per their affordability.
Positioning:
This factor is currently emphasis about Apple iShoes position in competitive market
place where it only depends upon the product performance. As Apple is one of most infleunce
technological company in international market where each and every product and service that get
to attain high positive outcomes get acquired in positive manner. Ranking plays an important
role to decides about particular company position in competitive marketplace through
performance and other factor like goodwill, growth and brand awareness.
In context of Apple Inc. manager can target the market of Africa as per their status of
people so that they can maximising their sales and profits by satisfying the needs of customers.
In this company can focus on targeting the high elite peoples specially who are brand addicted
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and focus on their fitness. In this Apple I-shoes is very effective because they helps in counting
the steps of people in a day and also notify them for the required step that a person need per day.
This helps in keeping the customers fit and light(Paul. and Mas, 2019). Through applying over
all analysis towards getting an idea about how a new company can enter with their new brand
and approach better productive outcomes in order to selecting market, people and competitive
position. Thus, Apple is one of most influence technology venture in internationally where now
they are plan to launch Apple iShoes to get optimum profitability.
TASK 4
Apply porter's generic strategy
Porter's generic model
This refers to effective business strategy that helps in the organisation to selecting the
best strategy so that they can beat the major competition within marketplace. It includes several
strategy that are cost leadership, differentiation and focus strategy(Pu, Gong. and Han., 2019). In
case of Apple Inc. manager can analyse various strategy so that best one can be adopted that can
be shown below:
 Cost leadership- This strategy reflects that the organisation can attracts the customers by
focus on their pricing of products. In this they can fix the low price for their products so
that more consumers are attracted towards it. In this some factors are included that helps
the businesses to reduce their cost of products that are low manufacturing cost, low
labour cost etc. in this organisation can also focus on providing the several discounts and
rebates to attracts customers. In case of Apple Inc. if manager can adopts this strategy
than they will get more customers but it will affect the brand image and it will also affect
company profit margin(Sahaf., 2019). It contains some advantage and disadvantage to the
organisation in several terms. It is effective for building the profits and sales for the
company in small period of time. In terms of Apple Inc. as it is highly a premium brand
adopting this strategy is not suitable for them because it reduces their financial cuts and
also the innovation in products.
 Differentiation- This strategy reflects that business enterprise can enhance their
customer base by focusing on providing the different product and services to the
customers that attracts the more and more customers. It also helps in gaining the
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competitive advantage within the marketplace. IN this company also get the high profit
margin and sales. In case of Apple Inc. manager can adopts this strategy within the
market of Africa for attracting the large base of customers so that they can gain higher
revenues and enhance the growth of the market. In this Apple can invest more to analyse
their competitors for gaining the large market share. In this company can investing in
their new product line that is Apple I- Shoes which is totally different for Apple to enter
into footwear market. It will attracts the customers attention due to this sales of the
products are also enhancing (Schiavone. and Simoni, 2019). The major advantage of
adopting this strategy is that it will develops the additional value to the organisation
which is useful for longer sustainability in marketplace. It also helps in enhancing the
brand value in the global market this is highly impactful for gaining the profitable results.
At the same time it also generate some drawbacks for Apple because generating the
revenues is not fixed in this because of new launching of the product in the new market.
It also includes high cost that will impacted the overall operating cost. But adopting this
strategy is very useful for longer sustainability.
 Focus strategy- In this two factors are involved that is cost focus and differentiation
focus. In this using te cost focus strategy by company attracts more customers in short
period of time. This helps in enhancing the market share and growth within limited
period of time. On the other hand using the differentiation strategy helps in providing the
different range of products to the customers this helps in capturing the customer
attraction towards the brand. In case of Apple Inc. manager can focus on differentiation
strategy for attracting the customers and gaining high profit margin(Tafesse and Wien,
2018).
By above explained strategy Apple can adopts the differentiation strategy for enhancing
their market share. In this they can enter into the footwear market with their new launching of I-
shoes that are sell on high price to the customers by targeting the high elite class people of
society and the people who focus on their fitness. This helps in gaining high market share and
retaining the company for a longer period of time within the new market with their new
offerings(Thrassou., Vrontis and Bresciani., 2018). By approaching to get better analysis of
Porter generic that helps to get optimum productive for positive outcomes where Apple iShoes
must follow Differentiation, because Apple never compromise within their price as they provide
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to ensure quality of products and service along with they can compare with other product and
service in other technological product. For this is undertaking by decide to target market is
Africa that helps to explore in better possible outcomes which helps to attain high competitive
advantages. As Apple product is not having any physical evidence in Africa.
CONCLUSION
From the above discussion it is concluded that effectively using strategic marketing
helps in gaining the competitive advantage by capturing the best opportunity to enter into the
new market with new offering. It inculcates the use of PESTLE analysis that show appropriate
for analysing the opportunities and threats to enter into the new market. It also explains the
various modes of market entry that helps in investing the company effectively and efficiently.
Further the market segmentation and targeting helps in identify and target the customers in new
market that can gain higher profit margin. In this porter's generic strategy is very effective
because this helps in showing the best alternative for longer survival of the organisation.
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