Strategy of Apple Brand Essay

1082 Words Apr 2nd, 2013 5 Pages
INTERNATIONAL BUSINESS STRATEGY OF PARENT COMPANY

When a firm decides to go international with their business they must face many competitive decisions. Two of the most important decisions a company will face are the pressures for cost reduction and pressures for local responsiveness. The pressure of cost reduction forces a firm to lower their value of the cost of creation. Firms can outsource to places where costs of their products are much cheaper or they can mass-produce a standardized product in one location. A firm must have the feeling of local representation. Every country has its own way of life. If a company does not adhere to each country’s differences in traditional business practices, distribution channels, and the demands
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This strategy is scarcely used when competition enters the market. With each strategy, business can find which one works best for their organization. Companies will decide to go international depending on the country it chooses to enter and the amount of profit it can earn.

In corporate strategy there are two types of diversification, linked and constrained. “Companies using linked diversification, enter new businesses when it relates in some way to another business they are already in but it does not necessarily have any connection to their other businesses. If they are using constrained diversification, they only enter a new business if it is based on their core resources or competencies. Companies based on linked diversification have little coherence to their overall corporate strategy, while companies using constrained diversification tend to be more focused. Constrained diversification allows companies to maximize the effect of their resources because they are shared (100).” Apple is a personal computer, hardware and software company, inherently leading to use constrained diversification because they utilize their competition and they share resources between businesses. For example iPods, iPads, iPhones, MacBooks and Apple TVs all run on the same operating system. This intends customers to link their music with laptops, TVs, cell phones and other Apple products. This allows for a more appealing product to

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