Risk Environments and Competitive Dynamics for Apple Company - Case Study Example

Global Production Network Student Name Institution Affiliation Introduction With globalization, there has been several changes in the way companies are operating. There has been issue that companies need to be careful with for them to effectively operate in what they are doing. Different cultures have emanated due to the fact that the world has become a global village. The different cultures in the world have made companies to come up with ethical policies and operational policies that will enable them excel in what they are doing. The economic conditions in the new era of globalization needs to be handled with a lot of care therefore companies have to approach it with care to ensure that they succeed in what they are doing. It is due to this fact that Apple has been able to create its own global production network that will enable it satisfy consumers in the market. It has enhanced its competition by using this network that it has been able to create all over the world since it has adopted a strategy that will fit each part of the world (Dicken & Peter, 2011). Global production networks (GPN) is defined as the organizational platforms that are used by different actors in undertaking issues related to cooperation and competition in different national economies and regions to ensure that to ensure that the organization has got a greater share value in its creation, capture and transformation in the economic activity is undertaking. Different organizations have been able to create different forms of global network as it will enable them in undertaking it operations. The organizations have been able to undertake research that will assist them in increasing their productivity. The firms need to have specific strategic networks that will be an advantage in their competition and be able to put them in the global market in whatever they are undertaking. Different companies in different industries have different global networks that will easily fit their products. Always when creation of a network the firms consider different issues like market imperatives, cost capability ratios, and financial discipline. The organizations will have different forms of governance systems that will enable penetrate different areas. With a global production network it is necessary that the governance system understands each market that they are dealing to ensure that everything is under control both in the short term and the long term (Gerald, 2009). The understanding of different market will enable them be in a position of satisfying customer needs in different areas without having any problem. Global Production Network has been key in driving apple towards the prosperity of Apple Company as one of the best world electronic dealers. It has been the driving factor behind making the iPad and iphones that the company is producing to penetrate most of the parts of the world. Apple brands are being recognized by many as one of the best brands and they have achieved through the strong network that has been created by the company. The network has enabled Apple to compete favorably with companies like Samsung, Huawei, and Nokia. It has established its own market niche and also been able to increase its sells. The recognition of its superior brands is attributed to the comprehensive marketing strategy that the company has created over time to understand different parts of the world cultures, the economic trends and other issues that will affect the consumer needs. The paper is going to look into various aspects that is associated with Apple iphone Global Production Network, and those who have been benefited most. Risk environments and Competitive dynamics The global production network that able has been able to create, has played a very important role in making its products more competitive. It has seen the company maintain its market even in those nations that are seen to be more competitive in the electronic production field. This is being attributed to the internal understanding that is given to the economy and the models that the other companies are dealing with. The iPhone, iPad and the iPod have been the highest source of revenue for Apple Company. They have been able to major market players and been able to establish a strong brand that has sold the able brand. Whereas other companies have concentrated in ensuring that they have got a very effective supply chain for their products, Apple has concentrated in having a strong global production network that has benefited them in a great deal when it comes to movement of the products all over the world. Customer needs are being taken into consideration when producing the products. These has made able to generate more dollars when compared to other companies. Though countries like China, Korea, Taiwan, and Japan are some of the countries that are known to have international companies dealing with the production of mobile phones, they have played an important role in making Apple products penetrating the markets more. Apple understands the customer needs more compared to these other multinational companies. Like the iPhone of Apple, are priced lowly when comparing them to the other models of phones of the same stature from the companies in this countries. This gives Apple an upper hand when it comes to moving sales compared to these companies. An example, the selling iPhone is put at the low end of $499 16GB, Wi-Fi only model. The units have been sold in different parts of the world in large numbers due to the affordability of the phones. Even the above mentioned economies have promoted these brand has it accommodated the customer need of affordability. Due to the pricing that has been undertaken by the company, it is estimated that 58% of the selling price of the iPhone 4 and more customers are being attracted to the product. The sales turnover for the two products has been higher compared to other companies that have concentrated in creating a greater supply chain. This has shown the abilities and benefits that are contained when a company employs better selling tactics. The pricing tactic has been very beneficial to apple and it has been able to drive the company forward in terms of progress. It has made its products to be more superior by pricing according to the economic development of a country. Most of the pricing tactics are consumer centered. Price sensitive consumers have not been left out of these as the company has undertaken thorough research to understand how it operates and the end results of the whole market. They understand why a given niche of consumers need both the iPhones and the iPads for them to have them all and then the pricing to be done in relation to the value addition that has been done (Keller, 2010). The entertainment, computing, communication niches have all been covered by the company to ensure that all interests of consumers are satisfied. The pricing has played an important role in moving the sales for Apple. Understanding all the niches has been achieved through the Global production network where consumers’ needs have been the key drivers on what kind of products are to be produced in the market. With globalization, there has been several changes in the way companies are operating. There has been issue that companies need to be careful with for them to effectively operate in what they are doing. Different cultures have emanated due to the fact that the world has become a global village. The different cultures in the world have made companies to come up with ethical policies and operational policies that will enable them excel in what they are doing. The economic conditions in the new era of globalization needs to be handled with a lot of care therefore companies have to approach it with care to ensure that they succeed in what they are doing (White House, 2011). It is due to this fact that Apple has been able to create its own global production network that will enable it satisfy consumers in the market. It has enhanced its competition by using this network that it has been able to create all over the world since it has adopted a strategy that will fit each part of the world. Due to the pricing system that is being undertaken by Apple, the iPhone has been the greatest beneficially. This is because, up to the recent times, the availability of the “unlocked iPhones” was not paid directly by the customers, in steady it has been offered as a subsidy that is offered as a carrier in the exchange of a contract. This has attracted more customers to buy the iPhones of able compared to other companies that are charging them for the unlocking fee. Therefore, the feature of unlocking the iPhones has given Apple a marketing power over other competitors and handset suppliers are given the ability to move more gadgets compared to those of other companies. The carrier pricing that comes with the Apple iPhones is associated to high sales turnout that has been seen in the global market. The hint to sell using this feature is a result of the global production network that has enabled Apple to understand some of the issues that should be considered when producing a given product to the market. The subscribers to the Apple iPhone have been able to be attracted to the feature giving them the ability of ensuring that it’s one of primary issues making them sell more in the market. The carrier feature that comes with the iPhone has been able to be used effectively by the company and many subscribers have been brought on board using the same feature. Several subscribers also have been retained and these makes Apple a favorite for many and they remain stuck on the services being provided by the company (Pisano & Shih, 2009). Though Samsung and LG in Korea have been the closest competitors of Apple, it is important to note that Apple has beaten then in a great way due to the fact that its marketing system is based on the global production network compared to them that is based on the supply chain. Apple has come up with more incentives that are consumer based something that has been behind the much sales turnout and the profits that the company has been making (Decker & Susan, 2011). The global network has enabled it to understand what consumers in different parts of the globe require and what attracts them most. This has enabled the company to retain more clients and subscribers are satisfied in the manner in which they are being handled by the company. Generally through this model, the profitability of the company has been constantly growing and Apple has been a successful story in the eyes of many. The US economy has leaped big from the success of Apple. Those working for the company, shareholders, and other stakeholders have all been under the same category of the parties benefiting big from the success of Apple. Through using the global production network, Apple has continually been in a position that it has kept most of its product designs in a manner that they are the best and customer oriented. The software development, product designs, marketing, product management and other issues that are involved in production has been made in such a way that they will all be satisfying consumer needs in all parts of the world. The information collected through the network is key in ensuring that everything moves in a manner that it is required and customer centered. This has made Apple to continually be the best wage paying company In the US due to the fact that it has been able to move its products well in the market without having many cases of return (Linden, Dedrick, & Kraemer, 2011). Workers who are involved in the production of the iPod, are said to be paid well by Apple compared to those that are working in other offshore supply chain based companies. This has kept the motivation of workers higher and production of goods that are of higher quality than the rest of the competitors. The impact does not end at the production level also the customer services are of high level making Apple a unique company amongst other technological companies. Whereas other companies have concentrated in ensuring that they have got a very effective supply chain for their products, Apple has concentrated in having a strong global production network that has benefited them in a great deal when it comes to movement of the products all over the world. Customer needs are being taken into consideration when producing the products. These has made able to generate more dollars when compared to other companies. Though countries like China, Korea, Taiwan, and Japan are some of the countries that are known to have international companies dealing with the production of mobile phones, they have played an important role in making Apple products penetrating the markets more. Apple understands the customer needs more compared to these other multinational companies (Suisse, 2011). Like the iPhone of Apple, are priced lowly when comparing them to the other models of phones of the same stature from the companies in this countries. This has made it be a giant in terms of its product satisfying all those who are using its products. The use of Global Production Network is key for any company. Client information is very necessary if any of the companies in the world need to excel in what they are undertaking. There are situations which dictate that consumers need to be consulted in case the company needs to survive. Using this means of production process then organizational platforms and their different actors, will use it in undertaking issues related to cooperation and competition in different national economies and regions to ensure that to ensure that the organization has got a greater share value in its creation, capture and transformation in the economic activity is undertaking. They will be able to have a more sold relationship with the customers compared to competitors. Apple has been able to create different forms of global network as it will enable it in undertaking it operations. This has made it to be effective in terms of its marketing means as most of the operations of the company are consumer based. The organizations has been able to undertake research that will assist it in increasing their productivity. Something that has made it to have higher sales turnout in the market. The firm need to have specific strategic networks that will be an advantage in their competition and be able to put them in the global market in whatever they are undertaking. Different companies in different industries have different global networks that will easily fit their products (Dedrick, Kraemer, & Linden, 2011). Always when creation of a network the firms consider different issues like market imperatives, cost capability ratios, and financial discipline. These are some the key areas that will affect the operations of the company. The organizations will have different forms of governance systems that will enable penetrate different areas. With a global production network it is necessary that the governance system understands each market that they are dealing to ensure that everything is under control both in the short term and the long term. Apple being a global trading company is an important feature that it should more be inclusive in the way it approaches it takes. The understanding of different market will enable them be in a position of satisfying customer needs in different areas without having any problem. It is important when undertaking search an activity as issues that will associate with the quality of the products in the market. Conclusion It is the ability to position its product as the best and consumer based in the market that has made Apple to succeed. It has been due to Global Production Network that guidance towards the prosperity of Apple Company as one of the best world electronic dealers. The products has been portrayed as one of the best due to the network that has been created in different parts of the globe. It has been the driving factor behind making the iPad and iPhone that the company is producing to penetrate most of the parts of the world. Apple brands are being recognized by many as one of the best brands and they have achieved through the strong network that has been created by the company. The network has enabled Apple to compete favorably with companies like Samsung, Huawei, and Nokia. It has established its own market niche and also been able to increase its sells. The recognition of its superior brands is attributed to the comprehensive marketing strategy that the company has created over time to understand different parts of the world cultures, the economic trends and other issues that will affect the consumer needs. Therefore, globalization is a good invention that has made companies to excel. References Credit Suisse, 2011. “Apple, Inc.: The Most Valuable Company in the World?” New York, NY: Credit Suisse Securities (USA) LLC. Davis, Gerald F., 2009. Managed by the Markets: How Finance Reshaped America. New York: Oxford University Press. Decker, Susan, 2011. “Apple escalates Samsung fight with ITC case.“ Bloomberg News. Dedrick, J., Kraemer, K.L., Linden, G., 2010. “Who profits from innovation in global value chains? A study of the iPod and notebook PCs.” Industrial and Corporate Change 19(1), 81-116. Dedrick, J., Kraemer, K.L., Linden, G., 2011. “The Distribution of Value in the Mobile Phone Supply Chain.” Telecommunications Policy 35(6): 505-521. Dicken, Peter, 2011. Global Shift: Mapping the Changing Contours of the World Economy, Sixth Edition, London: Sage. Keller, K., 2010. “iPhone 4 Carries Bill of Materials of $187.51, According to iSuppli.” Linden, G., Kraemer, K.L., Dedrick, J., 2009. “Who captures value in a global innovation network? The case of Apple's iPod.” Communications of the ACM, 52(3), 140-144. Linden, G., Dedrick, J., Kraemer, K.L., 2011. “Innovation and Job Creation in a Global Economy: The Case of Apple’s iPod.” Journal of International Commerce and Economics, 3(1), 223-239. Pisano, G.P., Shih, W.C., 2009. “Restoring American Competitiveness.” Harvard Business Review 87(7-8), 114-125. Rassweiler, A., 2010. “User-Interface-Focused iPad Changes the Game in Electronic Design, iSuppli Teardown Reveals.” White House, 2011. “President Obama Launches Advanced Manufacturing Partnership.” Press Release, June 24. Read More