New York City. This prove that Apple Inc operating cost have reduces because the operating cost in China is lower than in its home country (Nagaraj, 2015).
(Dudovskiy, 2014)
Partner Countries
The third component of star analysis that will be discussed is partner countries. The theory that is going to be related with partner countries is strategic alliances. Strategic alliances refer to cooperative agreements between potential or actual competitors that range from formal joint ventures to short-term contractual. One of the most recent alliance of Apple is with AT&T company. AT&T is the largest U.S telecommunication provider with more than 80 million subscribers. Apple-AT&T alliances remain rocky, partly because of the network investments that AT&T needed to make and no doubt also because of the high cash subsidies AT&T paid to Apple for every new subscriber. However, by the time this contract was up for renewal, the Apple iPhone was a proven killer product. As a result, Apple maintained a strong bargaining position with the telecom providers, ensuring that it would receive continued product payments as the telecoms sold Apple products to subscribers (Gomes-Casseres, n.d.).
An important advantage that Apple Inc gain through alliance with AT&T is that Apple able to penetrate new business markets which resulted in growth opportunities. This is because AT&T have already established huge customer bases that Apple Inc aims to attract. In addition to this fundamental relationship, following the iPhone launch. Apple Inc has further extended the iPhone geographical reach by creating new partnerships will telecommunications providers located outside the United States (Tsiakis, Kargidis & Katsaros, n.d.). It proves that Apple Inc able to achieve global competitive advantage in U.S through strategic alliances that they have formed. (David lecture) Customer Countries The final component from star analysis that is going to be discussed is customer countries. The theory that will be related with Apple Inc customer countries is integration-responsiveness framework. This framework, allows manager to deal with both global integration and local responsiveness of customer countries (Peng, 2006). Cost drivers are leaning ever more in favor of the global. For Apple Inc, iPhone is assembled in Taiwan from largely Asian-sourced designed by a wide range of American, European, and Japanese technology companies. Quality and technology from the best in the world, but costs held in line by equally world-class manufacturing in most productive locations. The costs of technology design in such a fast changing industry are helped by a global production system added to the global marketing of Apple’s iconic product (Tallman, 2009). When organization chooses a strategy of globalization, it means that product design and advertising strategies are standardized throughout the world. This approach is based on the assumption that a single global market exist for many consumer …show more content…
Although competing in the global market can be something very difficult but still following the strategies that is use by each component of the star analysis can help the company to reach its global competitive advantage. For instance, Apple Inc able to develop its products and services in its home country. Various frameworks and theoretical ideologies have been presented in order to know the most suitable methods for Apple Inc to achieve global competitive advantages. Hence, the analysis tries to configure how the value chain of the Apple Inc help to reach a global
(Dudovskiy, 2014)
Partner Countries
The third component of star analysis that will be discussed is partner countries. The theory that is going to be related with partner countries is strategic alliances. Strategic alliances refer to cooperative agreements between potential or actual competitors that range from formal joint ventures to short-term contractual. One of the most recent alliance of Apple is with AT&T company. AT&T is the largest U.S telecommunication provider with more than 80 million subscribers. Apple-AT&T alliances remain rocky, partly because of the network investments that AT&T needed to make and no doubt also because of the high cash subsidies AT&T paid to Apple for every new subscriber. However, by the time this contract was up for renewal, the Apple iPhone was a proven killer product. As a result, Apple maintained a strong bargaining position with the telecom providers, ensuring that it would receive continued product payments as the telecoms sold Apple products to subscribers (Gomes-Casseres, n.d.).
An important advantage that Apple Inc gain through alliance with AT&T is that Apple able to penetrate new business markets which resulted in growth opportunities. This is because AT&T have already established huge customer bases that Apple Inc aims to attract. In addition to this fundamental relationship, following the iPhone launch. Apple Inc has further extended the iPhone geographical reach by creating new partnerships will telecommunications providers located outside the United States (Tsiakis, Kargidis & Katsaros, n.d.). It proves that Apple Inc able to achieve global competitive advantage in U.S through strategic alliances that they have formed. (David lecture) Customer Countries The final component from star analysis that is going to be discussed is customer countries. The theory that will be related with Apple Inc customer countries is integration-responsiveness framework. This framework, allows manager to deal with both global integration and local responsiveness of customer countries (Peng, 2006). Cost drivers are leaning ever more in favor of the global. For Apple Inc, iPhone is assembled in Taiwan from largely Asian-sourced designed by a wide range of American, European, and Japanese technology companies. Quality and technology from the best in the world, but costs held in line by equally world-class manufacturing in most productive locations. The costs of technology design in such a fast changing industry are helped by a global production system added to the global marketing of Apple’s iconic product (Tallman, 2009). When organization chooses a strategy of globalization, it means that product design and advertising strategies are standardized throughout the world. This approach is based on the assumption that a single global market exist for many consumer …show more content…
Although competing in the global market can be something very difficult but still following the strategies that is use by each component of the star analysis can help the company to reach its global competitive advantage. For instance, Apple Inc able to develop its products and services in its home country. Various frameworks and theoretical ideologies have been presented in order to know the most suitable methods for Apple Inc to achieve global competitive advantages. Hence, the analysis tries to configure how the value chain of the Apple Inc help to reach a global