Business Analysis- International Strategy and Competitive Advantages for Global Company Apple

1115 Words Nov 20th, 2012 5 Pages
Introduction
According to Iliev et al (2004, p. 133), Apple Inc. was selling its products exclusively in America, initially. Nowadays, Apple has expanded significantly beyond domestic market. Apple has so far succeeded to become a multinational organization, selling products and resourcing law materials globally. To minimize the impact of the existing rivalry in the PC industry at the global edge and to maintain competitive advantage, Apple applies non-competition strategies, (Yoffie, 2004). This section examines the strategies adopted Apple Inc to penetrate and to manage rivalry in the global market. Further, this part looks into the competitive advantages of Apple Inc, which enable it to maintain competitive edge In the PC industry
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In fact, today, iTunes account for 70% for global market for digital music downloads, (Jones, 2011).
The combination of product development and product proliferation strategies is beneficial to Apple since the perceived value of the products of Apple Inc. generated through innovation and superior design proves to be inimitable competency. Thus, as much as this advantage exists, Apple will continue to lead in the PC industry. However, the product proliferation strategy adopted by Apple Inc. a major shortcoming. According to Iliev et al (2004, p. 133), this tactic leads to high pressure for cost reduction and for local responsiveness. This makes this approach the most difficult to realize, but if a company succeeds, it can obtain a low cost structure and also considerable level of customer acceptance. According to Iliev et al (2004, p. 133), Apple applies this approach, but, it has not yet attained the optimal point. As a result, the majority of computer owners in the global market do not know much about Apple’s technology. For Apple to attain appropriately low cost situation, it has to come up with ways to persuade PC users in the global market from the very entry of their innovative and technological superiority.
Competitive advantage
Apple Inc faces great competition form other companies in the PC industry such as Dell, Compaq and Gateway. This forces Apple to come up with competitive strategies which…