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 Apple Inc. Internationalization.

John Leyton Velásquez

May 2013

Ph. D. Professor: Pablo de Carlos Villamarín.

Discipline: International Strategic Management.

 Facultad de Ciencias Empresariales y Turismo de Ourense.Universidade de Vigo.

‘‘  Simplicity is the ultimate sophistication’’.

Leonardo da Vinci.

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 Apple Inc.: Internationalization.

INDEX.

1. Introduction.

2. Key Features.

3. Internationalization

process.

4. Conclusions.

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ORDER WORTH$25,000

NOT,thanks.

1976 1976-1998 1998-2001 2001-2003 2003 -

1. INTRODUCTION.

From 2001 focused primarily in four product lines: Mac, iPod,iPhone, iPad.

 Apprenticeship:

Outsourcing.

Massive layoffs.

Have cash on hand.

Boost R&D spending.

Buy on the cheap.

 Aggressive advertising.

Index

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2. KEY FEATURES.

 C  u

 s  t   om e r  s  .

Industry characterized by cost leadership, while Apple lead adifferentiation strategy.

I  n t   e  gr  a t  i   on an d 

 s  yn e r  gi   e  s 

 .

   G    l   o    b   a    l

   s   t   r   a   t   e   g  y

 .

   I   n   t   e   n   s   e

   c   o   m   p   e

   t    i   t    i   o   n .

Index

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3. INTERNATIONALIZATION.

a)  Delocalization.

b) Outsourcing.

c)  Apple Store.

d)  Apple Resellers.

“  It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change”.

Charles Darwin.Index

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3.a. DELOCALIZATION.

 At this stage, before 1998, began with the delocalization of theirfactories in search to economize their production process.

Now, compare it to a

computer at the time.

Manufacturing.

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 With coming back of Steve Jobs in 1998, the company had majorrestructuring, among some changes, they left to manufacture.

3.b. OUTSOURCING.

Direct Indirect

70,000 1,000,000

EMPLOYERS

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From 2001 begins its physical international presence in developedcountries based on differentiation leadership.

3.c. APPLE STORE.

2003 2008But.. Where are

BRICS?

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3.d. APPLE RESELLERS.

Guidelines

Since 2011 enhances its international presence allowing the

distribution of its products in a prudent way.

37%

23%

7%

21%

12%Sales 2012

 America Europe

Japon Asia-Pacific

Retail

Index

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4. CONCLUSIONS.

a)  Strategy.

b)  Process.

“Because the people who are crazy enough to think they canchange the world, are the ones who do”.

 Apple ad "Think Different", 1997.Index

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4.a. STRATEGY.

 Alliances and

agreements.

Economies of 

scale.

Leadership and

 Apprenticeship.

Less control and

greater risks.

Less flexibility and

greater dependence.

Uncertainty, if they 

change strategy.

 With Tim Cook as CEO begins a new era, between some objectives

to increase its global presence.

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4.b. PROCESS.

The intensive distribution can improve its international presence

(BRICS) but constitutes a risk for the image.

Foreign DirectInvestment.

Contractualsystems.

Exportation

Different

 ways.

Different

selections.

Commercialization

perspective.

Respecting the core

strategy.

Uncertainty in

BRICS.

High to low 

undertaking.

Index

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THANKS FOR YOURATTENTION!

End.