University Report: Launching a New iPhone - Market Entry Strategies

This report provides a comprehensive analysis of launching a new iPhone, examining various aspects critical to its success. The report begins with a macro-environmental analysis (PESTLE) assessing political, economic, social, technological, legal, and environmental factors impacting the launch, particularly focusing on Apple's reliance on China for manufacturing and the associated risks. It then explores different market entry modes, concluding that exporting is the most suitable approach for the new iPhone. Finally, the report delves into Porter's generic strategies, advocating for a differentiation strategy to gain a competitive advantage through innovation, product quality, and effective marketing. The report uses references to support the arguments and analysis.

Running head: LAUNCHING A NEW I-PHONE
LAUNCHING A NEW I-PHONE
Name of the Student
Name of the University
Author note

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Table of Contents
Question 1........................................................................................................................................2
Question 2........................................................................................................................................3
Question 3........................................................................................................................................4
References........................................................................................................................................5

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Question 1
The event that have been chosen to complete the report is Launching of a new I-Phone.
Macro Environmental Analysis:
P: It have been seen that the manufacturing unit of Apple have been completely
dependent on China. Apple have been emphasising on China to have a cheaper cost price of
manufacturing. Due to political unrest in China the manufacturing process might be affecting the
entire process. Another issue that is faced is that due to income inequality huge tax amount is
incurred in the process.
E: It can be said that as there might be relocation of the manufacturing area, the cost that
is incurred in manufacturing process gets high. This is the major issue that is to be considered.
Hence it can be stated that either selling price of the product will be altered or the profit margin
will get decreased (Khan, Alam and Alam 2015). This is the main reason that proper variation in
cost of the products can be seen.
S: It has been seen that there has been a lack of emotional attachment of the young people
towards the brand. This is one of the main reason that creation of social impact have been a
major issue (India, Strategy and Verma 2016). The cost of the products have also been one of the
major aspect that have led to improper development of the product sales.
T: Technology have been in a constant growth stage. This leads to the fact that Apple
needs to be having a constant development process. This constant development process includes
that distinct research and development section is needed to be present. This includes the fact that

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the cost that will be incurred in the manufacturing process will be higher. However, Apple have
been focussing on providing the latest technology that is available.
L: Legal aspects are also to be considered to be important as there are different set of
rules for each and every country. Legal issues regarding intellectual properties might be acting as
one of the major issue. This is the main reason that functional process might be getting effected
in a negative manner (Etzioni 2018). However, Apple have a different sector of legal department
which takes care of the legal aspects while launching of each and every I-phones.
E: As the manufacturing area of Apple I-Phones are in China, the main aspect that is
considered is that China have been facing issues regarding excess manufacturing of e wastes.
Hence wise proper steps are to be taken leading to increase in cost of the manufacturing process.
Question 2
The different market entry modes that are present are namely exporting, licensing and
franchising and lastly the joint venture.
The best way the latest I Phone can be entered in the market is namely with the help of
exporting method of market entry modes. It can be seen that I Phones are manufactured in China.
Distribution of the I Phones are performed from China. Apple does not intend on opening
manufacturing centres in other places as well. Hence Exporting can be the best way out. With the
help of this mode the business model will remain unaltered and hence wise there will be no
excess cost incurred in the processing (Thompson, Strickland and Gamble 2015). Adjustments
that are to be made will also be on the lower side and hence wise this will also benefit the
operational process. With the help of the exporting process, proper understanding of the business
process can be performed as well. Hence better analysis can be made.

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Question 3
Among the porter’s generic strategies, the main strategy that can be implemented is the
Differentiation Strategy. As per this strategy, the main benefit aspects that are considered in the
process are namely performing proper research process. In this process proper development as
well as innovation implementation plays an important role. It can be stated that with the help of
proper innovation, I-Phone might be having features that are not present in most of the phones of
that range and hence this will be helping in gaining competitive advantages (Miller and Maxwell
2016). Again with the help of differentiation strategy, another benefit that will be received is that
quality of the products will be getting higher. Again with the help of differentiation strategy,
effective sales and marketing can be performed. This ensures that proper understanding of the
market demands can be fulfilled. Hence it can be concluded that during manufacturing of the
new I-Phone, proper quality of the product can be maintained and also this will ensure that
competitive advantage is received.

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References
Etzioni, A., 2018. Apple: Good business, poor citizen?. Journal of Business Ethics, 151(1), pp.1-
11.
India, S., Strategy, P.H. and Verma, D., 2016. International Journal of Enhanced Research
Publications, issn: 2319-7471.
Khan, U.A., Alam, M.N. and Alam, S., 2015. A critical analysis of internal and external
environment of Apple Inc. International Journal of Economics, Commerce and
Management, 3(6), pp.955-961.’
Miller, T. and Maxwell, R., 2016. Apple. In Global Media Giants (pp. 383-396). Routledge.
Thompson, A., Strickland, A.J. and Gamble, J., 2015. Crafting and executing strategy: Concepts
and readings. McGraw-Hill Education.