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I.

Analyze business strategy:


1. Strategy:

Analyzing Apple's strategy in Vietnam:


 Product characteristics: Apple products (iPhone, iPad, MacBook...) are high-tech
products that are highly standardized, requiring little adjustment to suit each
market.
 Vietnamese market: The Vietnamese market is an emerging market with rapid
growth, especially for high-tech products. Vietnamese consumers have high
demand for high quality products and strong brands.
 Apple's activities in Vietnam: Apple mainly distributes its products in Vietnam
through authorized retailers. The company does not have a production factory in
Vietnam.
 Based on the above factors, Apple’s strategy in Vietnam is the global strategy. It
means that Apple provides products and services of consistent quality worldwide,
including Vietnam. This helps Vietnamese customers experience Apple products
and services seamlessly.
The reasons why Apple apply this strategy:
 Leveraging the brand: The Apple brand has been built very strongly globally.
Cloning products helps Apple quickly access the Vietnamese market and build
trust from consumers.
 Cost savings: The production and distribution of standardized products helps
Apple save costs.
 Meet market needs: Although there are not many adjustments to suit the
Vietnamese market, Apple products still meet the needs of Vietnamese consumers
in terms of quality and features.

3. Level of International Strategy

Based on three levels of strategy for MNCs, we have a research of Apple international
strategy

3.1. Corporate Strategy

 Related Diversification: Apple has expanded beyond computers to include


smartphones, tablets, and online services.

Example: The development of Apple Music and iCloud shows that Apple has expanded
its digital services, adding value The integration of software and hardware enhances the
user experience.

From Computer to Mobile:


 iPhone: Apple successfully moved from the computer market to the smartphone
market with the iPhone. This product not only inherited the advantages of the
intuitive user interface of the Mac but also created a completely new market
segment.
 iPad: Following the success of the iPhone, Apple launched the iPad, a hybrid
device between a tablet and a laptop, expanding its reach to a wider range of
customers.

Expanding the service ecosystem:

 App Store: The creation of the App Store turned the iPhone into an open platform,
attracting millions of app developers and creating a huge source of revenue for
Apple.
 Apple Music: Apple Music is a streaming music service that competes with
Spotify, offering a huge music library and unique features.
 iCloud: The iCloud cloud storage service allows users to back up data, sync
devices, and access data from anywhere.

Hardware and software:

 Apple Watch: The Apple Watch is not only a smartwatch but also a health and
fitness device, expanding Apple's product ecosystem.
 AirPods: The AirPods wireless headphones have become an indispensable
accessory for many iPhone users, creating a new product line and bringing in
significant revenue.

3.2. Business Strategy

Apple primarily employs a differentiation strategy in the Vietnamese market.

 Unique Selling Proposition (USP): Apple differentiates itself through its


innovative design, user-friendly interface, and premium brand image. These
factors set Apple's products apart from competitors.
 Higher Price: Apple typically commands a higher price premium compared to
competitors due to its perceived value and brand reputation.
 Target Market: Apple primarily targets high-income consumers who are willing to
pay a premium for quality and innovation.

Why Differentiation Strategy is Suitable for Apple in Vietnam:

 Brand Recognition: Apple's strong brand recognition and reputation for quality
resonate well with Vietnamese consumers who value premium products.
 Growing Middle Class: Vietnam's growing middle class has a higher disposable
income, making them more willing to pay for premium products.
 Desire for Innovation: Vietnamese consumers are increasingly seeking innovative
and technologically advanced products, which aligns well with Apple's focus on
differentiation.

1. Organizational configuration: Break down how the corporation is organized to


support the business strategy.
When Tim Cook took over in late 2011, shortly after unveiling the second-
generation iPad, he restructured the company, and part of this restructuring included
changing how the company’s hierarchy worked. This means that Apple’s vice presidents
now have more autonomy, something which was greatly limited under Jobs.
Apple uses a company structure that is commonly known as “functional
organization”. This means that the company has been organized around areas of
expertise, rather than individual products. The products themselves are then worked on
by individuals from across the different areas of expertise.
Apple is split into focused divisions: Marketing, Engineering, Finance and Admin,
Operations. Each division has their own upper management and vice presidents.

The effective of Apple’s org chart structure


• The functional structure helps Apple enjoy strong corporate control. The
individual divisions all enjoy enough autonomy to enable them to perform at their very
best, leading Apple to have created some truly market-leading products over the years.
The individual divisions all enjoy enough autonomy to enable them to perform at their
very best, leading Apple to have created some truly market-leading products over the
years.
• Every single individual working for Apple has a specialized role with specialist
duties . Every single employee is carrying out the role best suited to their skill set. This
means that they have the ability to create truly integrated products with an excellent user
experience.
The disadvantage of Apple’s org chart structure:
• High work pressure: To meet Apple's strict standards, employees must face great
work pressure.
• Less flexibility to change: A centralized organizational structure can reduce the
flexibility to change strategies.

2. Market penetration: Evaluate the expressions that the corporation has used to
enter new markets (such as exporting, joint ventures, direct investment, etc.).

Indirect export is the first form Apple uses to bring products into the Vietnamese market.
This is a fairly common approach for companies looking to enter a new market without
much insight.

Apple's indirect export process goes as follows:


• Choosing a distributor: Apple will choose reputable distributors in Vietnam, units
with extensive retail networks and experience in distributing high-end technology
products.
• Sign a contract: Apple and the distributor will sign a contract, which clearly
stipulates terms such as price, product quantity, payment conditions, warranty policy, and
benefits. of each side.
• Freight transportation: Apple products will be transported from manufacturing
plants to distributors' warehouses in Vietnam.
• Distribution: The distributor will be responsible for distributing products to retail
stores, agents and final consumers.
Advantages of indirect export:
• Fast: Apple can bring products to the Vietnamese market quickly without
investing too much.
• Less risk: The distributor will be primarily responsible for selling the product,
minimizing risks for Apple.
• Take advantage of the existing distribution network: Apple can reach more
customers thanks to the distributor's extensive distribution network.
Limitations of indirect export:
• Less control: Apple will have less control over product distribution, prices may be
competitive, and customer service quality may be uneven.
• Lower profits: Apple will have to share profits with distributors, resulting in lower
profits compared to direct sales.

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