Apple's International Strategies Essay Example | Topics and Well Written Essays - 1000 words

Apple's International Strategies - Essay Example The business sells in Europe, South America, North America, Asia and Australia. Apple has considerable brand loyalty established in China, The United Kingdom, and Australia. This loyalty occurs as part of a broad international marketing communications strategy that includes social media, press releases, transparent market research targeting consumers (i.e., attitude surveys), and the strong emphasis on customer relationship management. In all international locations, the majority of target customers that maintain strong loyalty are professional businesspersons, those in arts and entertainment, and are generally between the ages of 18 and 34 (Rubicon Consulting, 2008). Apple conducts considerable volumes of marketing research to determine attitudes, preferences, and lifestyles of consumers to ensure it is producing relevant products internationally and creating effective advertising that meets with these lifestyles and demands. In China, Apple entered this market with a licensing stra tegy, due to the high volume of technology competition with pre-established brands (Ramadugu & Samad, 2009). Apple desired to link its brand name with China Unicom, one of the largest telecommunications companies that had considerable growth in consumer satisfaction in China. This licensing agreement was also the chosen strategy for entering this market as there is an unpredictable distribution of mobile technology in China and by having China Unicom control distribution, it would improve the costs associated with setting up an Apple-specific distribution system in this new market. In Nigeria, as another example, Apple chose a turnkey market strategy, which is when technical processes and technology is exported to the market. Once a turnkey contractor is identified, the contractor establishes the operational model, construction, and implementation of Apple production and sales strategies in the new market (Evans, 2005). This is a country with limited competition and where the costs of new market entry are high to competitors. By establishing an operational foothold in Nigeria, this would potentially open new opportunities for local distribution from the newly constructed manufacturing facility. Apple maintains a different market entry strategy based on consumer characteristics, the level of competition in these markets, and identified brand recognition and loyalty for Apple premium products. In the UK, the target market consists of 18-34-year-olds in which branding occurs related to their lifestyle and the linkage between their perceptions of Apple products. Robinson (2010, p. 2) identifies that gaining market attention in the UK includes focusing on emotions, hopes, aspirations and lifestyle passions in a market saturated with competition and where there are high brand recognition and preference. Market entry in this country included licensing agreements and exporting since there was already a well-developed mobile and consumer technology distribution system established in this country. The level of price sensitivity in customers, the distribution networks available in the country, the level of competition, and the ability to provide relevant promotion to meet consumer lifestyles determine the market entry strategies selected by Apple.