The purpose for the proposal write-up is to understand how to research and analyze one or more challenges or opportunities facing a company in another company and to develop conclusions and recommendations for dealing with the challenges or opportunities. The overall aim of this paper is to develop a detailed company research report, focusing on the challenges or opportunities facing Apple Inc. in the country of China and your conclusions and recommendations. It should emphasize analyses instead or description – in other words, the implications of the information you present should be highlighted and made central to the paper. Descriptive information should be discussed to set the stage and context for the issues you examine but the analysis of the situation should receive much greater emphasis. You should think critically about the problems, challenges, opportunities or other issues facing your Apple Inc. in China and should develop your own perspective facing the company now and into the future.
This paper must include an Executive Summary (1-2 pages) and 5 pages of content. A maximum of 7 pages. Use an acceptable style guide (e.g., APA, MLA, Strunk & White, etc.)
These solutions may offer step-by-step problem-solving explanations or good writing examples that include modern styles of formatting and construction of bibliographies out of text citations and references. Students may use these solutions for personal skill-building and practice. Unethical use is strictly forbidden.This proposal write-up pertains to Apple Inc.’s operations in the Chinese market. It begins with an examination of Apple’s current circumstances as a technology company. A combined SWOT and PESTEL analyses follow where strengths, weaknesses, opportunities, and threats are highlighted for Tim Cook and management’s attention. This write-up concludes with a set of short-, medium-, and long-term strategies recommended for Apple Inc. as a set of directions to take to address the major weaknesses and threats identified.
Apple Inc.: At Present
The market capitalization of Apple Inc. as of March 31, 2017 is $747 billion (Apple Inc., 2018). This is definitely a giant company in the global technology industry. Although its famous products are iPhones, it also sells Apple watch, Apple TV, consumer and professional software applications, iCloud services, and Apple Pay, among other things (Apple Inc., 2018). The Company has existed for four decades already, and may be thought of as possessing the creative ability to provide innovative products, services, and technologies. In fact, in its annual report, successful innovation distinguishes the Company from its direct competitors. Investment in research and development is a crucial element of its overall business strategy (Apple Inc., 2018). With these positive things about the Company, was it a good decision to penetrate the Chinese market? Do the advantages of this international expansion outweigh the disadvantages?
What follows is a combined SWOT and PESTEL analyses. The SWOT analysis is conducted to reveal the Company’s current strengths and weaknesses. The PESTEL analysis is conducted to scan the macro-environments, especially in the context of China, for opportunities and threats that Apple needs to address - to be able to realize its goal of succeeding in China - in a country that was forecast in 2015 as the world’s second largest consumers market (trailing closely behind the US) (Booz & Co., 2012). Specifically, it was determined that the Chinese made 14% of the world’s purchase decisions in 2015.
With respect to Apple’s decision to enter the Chinese market, brand strength, global reach, and antifragility are its major outstanding strengths.
Brand Strength: Source of Sustainable Competitive Advantage
Undoubtedly, Apple is a very strong brand. As a proof, within the intensely competitive Chinese market, the Apple brand has consistently maintained a spot within the top 5, specifically securing #2 as the best smartphone model of 2017 (Yan, 2018). In fact, Forbes considers Apple as the most valuable brand in 2017, with a monetized value of $170 billion (Stoffel, 2018). To state the obvious, the Company has undoubtedly converted its target customers into hard-core loyalists, who cannot afford switching to any other brand for their tech gadgets....
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