Business Research Report: Apple's Global Expansion Challenges Analysis

This report is a literature review that explores the challenges Apple encounters in its global expansion efforts. The study examines the impact of external challenges on Apple's strategies, including legal, socio-cultural, technological, and market factors. The research investigates issues such as slow industry growth, low differentiation, high exit barriers, and reliance on third parties. The methodology involves a secondary thematic analysis to gain insight into the impact created by these challenges. The report also includes an examination of Apple's resources and capabilities, as well as an assessment of its business strategies. The study suggests recommendations to help Apple achieve successful global expansion. The research paper also provides an overview of the research problem, aim, objectives, questions, methodology, results, and discussion, along with a Gantt chart, ethical considerations, and limitations. The findings highlight the importance of evaluation, audits, and reviews in upgrading the standards and quality of the infrastructure, which is key to achieving global expansion.

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Business research on the challenges in managing international business: A case study of
Apple
Name of the student:
Name of the university:
Author note:

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Abstract
Management of the operations is vital for detecting the efficiency in the operations. This
involves execution of risk assessment, quality control, evaluation and audits for assessing the
effectiveness of the performance in terms of achieving the goals and objectives. These
aspe4cts seem true for all of the companies and organizations including Apple. This
assignment, through a literature revie4w attempts to explore the challenges encountered by
Apple in the process of attaining global expansion. This is through the means of introducing
the challenges of high operational cost, low differentiation, threat of substitutes, high exit
barriers, reliance on the third parties and others. Methodological approach towards
conducting secondary thematic analysis is apt in terms of gaining an insight into the impact
created by these challenges on the organizational attempt to enhance effectiveness. The
recommendation of evaluation, audits and reviews are crucial for upgrading the standards and
quality of the infrastructure, a key to achieve global expansion.

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Table of contents
Introduction................................................................................................................................3
Research problem...................................................................................................................3
Research aim..........................................................................................................................3
Research objectives................................................................................................................4
Research questions.................................................................................................................4
Methodology..............................................................................................................................4
Research philosophy..............................................................................................................4
Research approach.................................................................................................................5
Data collection.......................................................................................................................5
Data analysis..........................................................................................................................6
Reliability and validity...........................................................................................................6
Ethical considerations............................................................................................................6
Limitations.............................................................................................................................7
Gantt chart..............................................................................................................................7
Results and Discussion...............................................................................................................8
Legal.......................................................................................................................................8
Socio-cultural.........................................................................................................................8
Technological.........................................................................................................................8
Market....................................................................................................................................9
Slow industry growth.............................................................................................................9
Low differentiation.................................................................................................................9
High exit barriers....................................................................................................................9
Rival anticipated strategic moves.........................................................................................10
Economies of scale...............................................................................................................10
Economic and political uncertainty......................................................................................10
High research and development costs..................................................................................10
High administration costs.....................................................................................................11
Risk of component order placement....................................................................................11
Reliance on third parties.......................................................................................................11
Dominance from Microsoft..................................................................................................12

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Conclusion................................................................................................................................12
Referencing..............................................................................................................................13
Bibliography.............................................................................................................................14

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Introduction
Management of international businesses need efficient and effective skills to assess
the feasibility of the internal resources and capabilities. Rationality in the approach of the
managers is the key towards yielding positive results in the form of expansion. In the process
of managing the business, several factors influence the operations. These are political,
economic, social, technological, legal and environmental (Chernev 2018). Challenges in
managing international business are evident in the present age of competition, which adds
vulnerability into the position within the market. For effective handling of these influences,
companies and organizations need to conduct evaluation, audits and reviews and maintain
consistency in it (Olson et al. 2018). This assignment attempts to develop a literature review
on Apple’s strategies to manage the challenges in global expansion.
Research problem
Challenges are inevitable in the business scenario, exposing the businesspersons to the
hardships, which they might face in the process of executing the operations. Absence of
improper strategies aggravates the complexities in terms of maintaining the pace with the
contemporary brands. Lack of skills, abilities and competencies towards conducting market
research deprives organizations like Apple from the recent market trends for achieving g
customer satisfaction (Apple.com.au 2019). Within this, mention can be made of the lack of
transparency, which reflects the issue of cyber crimes, compelling Apple to encounter severe
losses in the form of private and confidential data. This issue is a matter of serious concern in
terms of upgrading the infrastructure, needed for penetrating into the international markets
(Proquest.com 2014). This research would shed light on the importance of strategic planning,
which would lower risks of unsuccessful investments.

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Research aim
The aim of this research is to assess the impact of external challenges on the global
expansion strategies of Apple.
Research objectives
To assess the resource capabilities of Apple
 To examine the feasibility of streamline business strategy of Apple
 To excavate the challenges faced by achieve in developing the infrastructure
 To suggest recommendations, so that Apple can emerge successful in achieving
expanding in a proper manner
Research questions
Are the resources of Apple capable enough for developing products according to the
needs of the customers?
 What are the strategies developed by Apple for enhancing the efficiency in streamline
business?
 What are the solutions adopted by Apple for overcoming the external challenges?
 What recommendations can be suggested for Apple to enhance the fame and glory
through global expansion?
These are the questions on a broader version. The main focus of the assignment is on the
question, “What are the solutions adopted by Apple for overcoming the external challenges?”
Methodology
Research philosophy
The philosophical approach towards conducting a research is of three types-
positivism, post-positivism and interpretivism. Positivism relates to the generation of real,
scientific and objective knowledge regarding the subject matter. As per the arguments of

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Mackey and Gass (2015), post-positivism relates to the assessment of the causal effects from
the application of the scientific, real and objective facts. Interpretivism relates to the act of
interpreting new facts from the knowledge applied. This research would incorporate
positivism philosophy for generating real, objective and scientific knowledge into the
external challenges faced by Apple towards achieving global expansion. Research design
For conducting a research, the research follows three design patterns- exploratory,
explanatory and descriptive. Exploratory design is when the researcher sheds light on every
aspects of the research topic. This includes both positive and negative sides. Explanatory
design requires the researcher to define all the terms and concepts related to the subject
matter. On the other hand, Silverman (2016) states that descriptive design is when the
research delves deeper into the dynamics, which revolves around the topic of research. In this
research, the researcher would apply exploratory research design for exploring the
unexplored realms of the challenges, which Apple faces for attaining global expansion.
Research approach
In a research, there are two different approaches- inductive and deductive approach.
Inductive approach is when the researcher induces new ideas and facts from the gathered
knowledge and available facts. This often leads to hypothetical results. On the other hand,
Fletcher (2017) is of the view that deductive approach comprises of the act of deducing
relevant conclusion and recommendations from the available ideas and facts. This is
comparatively easier, as the sources are mainly handy for the researcher. This researcher
would infuse deductive approach for deducing relevant conclusions regarding the challenges
faced by Apple within the operations.
Data collection
The data needed for a research is collected through primary and secondary methods.
These methods are further subdivided into quantitative and qualitative. In primary

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quantitative method, data is collected through survey. On the other hand, in qualitative,
interviews are the means for collecting the necessary data (McCusker and Gunaydin 2015).
Secondary methods include case study references, journals and books, which assist the
researcher in collecting the necessary data. In this research, the researcher would use
secondary data for collecting data on the external challenges in achieving global expansion.
Data analysis
The collected data is analyzed through primary and secondary methods, which are
further segmented into quantitative and qualitative. In primary method, the collected data is
analyzed through the development of survey questionnaires and the answers are evaluated
through charts, tables and graphs (Fletcher 2017). On the contrary, themes are developed for
analysing the data collected through secondary means. In this, articles are used through
inclusion and exclusion criteria. In this research, the researcher would analyse the collected
data through the means of secondary data by developing relevant themes for external
challenges in global expansion for Apple.
Reliability and validity
In order to develop reliable and valid data, the researcher makes use of inclusion and
exclusion criteria. Inclusion criteria refer to the inclusion of the books and journal articles
published in the last 10 years. On the other hand, exclusion criteria are the exclusion of the
books and articles published much before the last 10 years (Silverman 2016). For conducting
this research, the researcher would consider the case studies, books and articles published in
the last 10 years for developing reliable, valid and authentic data on the external challenges
faced by Apple in achieving global expansion.
Ethical considerations
Ethics is vital for conducting the research in a proper manner. This includes exposing
liberal approach towards the convenience of the samples, avoiding plagiarism and collusion

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and others. Conscious approach towards referring to the sites, which needs subscription, is
also accounted as an integral ethical approach towards conducting a research (Mackey and
Gass 2015). In this research, the researcher would include those books and journals, which do
not need subscription. Along with this, the researcher would also take permission from Apple
Directors for accessing the company website. Along with this, the researcher would
acknowledge every author, which would be referred for collecting the necessary data on the
external challenges of Apple in the process of global expansion.
Limitations
Time and financial constraints are the main limitations in the research, acting as
obstacles in the efficient execution of the research related activities. Availability of adequate
time would have assisted the researcher to collect primary quantitative data along with the
secondary data (Fletcher 2017). Availability of flexible financial resources would have
helped the researcher to conduct interviews on the Apple managers and survey the customers
regarding the impact of external challenges on the expansion strategies.
Gantt chart
Activities Week
1
Week
2
Week
3
Week
4
Week
5
Week
6
Week
7
Week
8
Selecting
the topic
Developin
g aims
and
objectives
Literature
review

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Data
Collection
Data
analysis
Results
Evaluatio
n
Making
the
changes
Final
evaluation
Closure
Table: Gantt chart
(Source: Created by the researcher)
Results and Discussion
Legal
In 2003, Apple and fellow companies indulged in pirating and copying, which
adversely affects the bottom-line services. This resulted in the intervention of the
governmental agencies through the means of the prosecution laws (Apple.com.au 2019).
Socio-cultural
Restrictive culture affects the profitability of Apple. Mention can be made of China,
were internet traffic increased by 71% in 1997-1998. This maintained consistency until the
era of 2005. The customers accepted some of the changes. Even after this, there were issues
in credit card transactions. The major drive behind this was high internal operational costs of

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computerization. In the countries except United States and Europe, Apple needs to make
changes according to the cultural differences, which is problematic if there is no proper
strategy. Along with this, low educational standards in most of countries are a major source
of concern for Apple (Apple.com.au 2019). Limited progress in this field deprives the
organization from developing the infrastructure.
Technological
Shortened product life cycles affected the production from the research and
development team. This has also been an issued in terms of coping up with the setbacks,
straining the R&D funds. Poor quality microprocessors, semiconductors, memory storage and
speed capabilities is a challenge in terms of developing quality electronic gadgets.
Market
Market is high concentrated with most of the revenues, accounting for 90% of the
shares coming from 1500 contemporary companies. Limitation in the number of competitors
and remaining market dividend of 1000 other companies reflects the absence of barriers in
entry for the brands (Proquest.com 2015). However, from these, only few can achieve
expansion. These aspects attach negative connotations to market attractiveness for Apple,
depriving them from attracting large scale customers (Apple.com.au 2019).
Slow industry growth
The growth pace of Apple is moderate. In developed economies, the industry growth
for iPhones has slowed down. 52% of the total sales revenue for Apple’s iPhones is a matter
of serious concern in terms of penetrating into the foreign markets. Along with this, fixed
costs of the products strain the budget, depriving the customers of their wish to purchase
branded products. In such a situation, plans regarding building a campus in California are
irrelevant, as the project cost is about $5 billion dollars (Apple.com.au 2019).

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Low differentiation
High innovation in the products makes them unique, providing the competitors to
copy the designs. This reduces the intensity of differentiation, increasing the threat of
substitutes.
High exit barriers
Huge investments are being made by Apple to strengthen the supply chain network.
Plans are being for introducing supply chain robots of $10.5 billion dollars. This is something
beyond the expenditures on custom built machines. Such high investments act as obstacle in
the form of high exit barriers. This is because of the pressures on abandoning the products
(Apple.com.au 2019).
Rival anticipated strategic moves
Rivalries of Apple developed the strategy of Bad Blood, broadening the digital
communication. The managers claim that the RealNetworks has adopted the tactics of a
hacker, contradicting the ethical approach needed for gaining trust, loyalty and dependence
from the customers. Loss of the confidential data from iPod has compelled the governmental
agencies to intervene (Proquest.com 2001). This has spoiled the hard earned reputation of
Apple. As a result of this, decisions have been taken regarding imposing restrictions on iPod
software updates. This indicates shunning of the technology support, adding negative
connotations to supply chain network, devaluing the operations. Planning for adding video
conferencing to Chat has undergone criticisms (Apple.com.au 2019).
Economies of scale
The expenses behind software are extremely high. Refinement of the price strategy
results in minimization of the production copies.
Economic and political uncertainty
Political instabilities are challenge for Apple in terms of enhancing the productivity.
Typical example of this lies in the postponing of purchases by educational institutes for