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In: Economics

Give a feedback A company that operates internationally is Apple inc. Apple Inc is an American...

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A company that operates internationally is Apple inc. Apple Inc is an American multinational technology company. Based on the article ‘’Apple Globalization and Global Strategic Planning Assignment’’, the author stated that Apple Inc uses differentiation strategy as its major international strategy to deliver high customer value through its innovation brands in their overseas market. With the help of this strategy, the organization has developed a strong market that is share in overseas market. Throughout the years, Apple inc collaborated with many different companies. Over 30 years ago, Apple and IBM were fierce competitors in the PC market. Recently, Apple and IBM announced a partnership between the two companies. To answer the question, mergers and acquisitions and also joint ventures would be appropriate for this firm. I believe there are different industries that seem to lend themselves to particular types of collaborative arrangements more readily than others. I believe that huge companies that are globally connected and harder to handle are forced to adjust their market structure.

Solutions

Expert Solution

Its completely appropriate for Apple Inc to adopt differentiation strategy.In fact this strategy has lead the company to gain huge profits.The main aim of the company is to lend best services to its customers,so it's must to adopt differentiation strategy.Tastes and requirements of both domestic and foreign customers should be taken into consideration and product should be designed accordingly.After manufacturing products by including necessary features,products are sold at different price for different countries.This strategy has improved the product services and customers started liking it.Usually customers feel that  Apple Inc products depicts luxurious status.All these factors and features made Apple Inc acquire huge profits.It has been successful in earning maximum returns ,gaining reputation in overseas market,high sales,etc.Therefore,differentiation strategy has boosted the sales rate and the Apple Inc turned to be one of the top multinational company.IBM is another top company which serves technological products and IT services.There was a tough competition between Apple Inc and IBM.Later these two companies were forced to adjust their market structure by getting merged and then they started serving best products to the customers.As these two companies serve similar type of services,even their production and managing costs are similar and its difficult to handle such companies.Inorder to adjust these costs and to serve customers with best products,Apple Inc and IBM got collabarated.This lead to Apple Inc to manufacture products with software designed by IBM.Hence,it benefited for both the companies and their products gained high image in doemstic and overseas market.


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