Ch. 5 - Developing a Global Vision

 Over the years Apple Inc. has gone from being an American based company to becoming a multinational giant. Apple has become a multinational corporation, a multinational corporation is company that is heavily engaged in international trade, beyond exporting and importing. I will discuss how Apple has grown into a Multinational company and how the company has impacted the international market.

 

 Interbrand(the world's leading brand consultancy) announced that Apple is the world's most valuable brand. As of May 2013, Apple is one of the worlds leading companies. Apple maintains 408 retail stores in fourteen countries, sells all of its products online and participates in worldwide tours to promote its products. Apple also participates in the international market by having many of its products manufactured outside the US. A huge example is how China is one of Apples largest international manufacturers. Despite the efforts Apple has made to compete internationally with other colossal technological companies, Apple still suffers negative drawbacks. The number of Apple retail stores in foreign countries is relatively small for such a well known company with competitively priced products. Unfortunately, Apple's global market in developed regions was very uncertain up until recently because of its pricey products. High prices have caused Apple to struggle in the past to compete with foreign competitors efficiently. Today, acknowledging the importance and benefits of globalization, and in an effort to penetrate the more determined international markets, Apple improved its global vision by implementing new global marketing strategies.

 

The graph above shows how apple impacted the international market in 2011. In 2013 the company started producing its products with cheaper material allowing the products to be sold at lower price. An example of this is the introduction of the iPhone 5c the iPhone 5c was sold at a much lower price than previous models. This allowed Apple to sell the product internationally and have a bigger impact on the international market. In 2014 the company manufactured its successful iPhone 6 with cheaper and lighter material, despite the high prices the company was able to profit due to the introduction of the more affordable material and people were willing to pay the price. This move allows apple to manufacture at a higher rate in the international market and it adds to its international improvements as  multinational corporation.

Apple has had it's difficulties expanding as a multinational corporation, but new innovation and marketing strategies has helped the prestigious brand to expand into the international market.