Globalization is a defining word of our age and the way in which we live. It affects people, companies, their workforce and consumers. Globalization affects all aspects, not just of the corporate world, but transactional and cultural relationships generally. And as a consequence it affects how we live and how we interact, no matter where we live. This is background wherefore it has a great impact on our life and how we interact, no matter where we live. The study of transaction takes place in form of trade across national borders for the purpose of satisfying the needs of individuals and organizations.
According to Milton Friedman, “it’s now possible to produce a product anywhere by a business located anywhere, using resources from anywhere, to be sold anywhere”.
(Roosa, 2008, p.182)
All Apple products, as well as the Ipod, are developed, designed and market in house by Apple’s headquarter located in Cupertino USA, but simultaneously outsourced the remaining four hundred plus intermediate components to both domestic and international subcontractors.
The story of internationalization starts with the microchip that makes the “music player go”. It is subcontracted by another Silicon Valley company called Portalplayer which outsourced the microchip’s production to Taiwan. Even the operating Software is written by engineers in India which are cheaper than their American Colleagues. Together with the Ipods fabulous operating system which makes the product easy to use, the microchip is send to a warehouse located in Hong Kong until the component is delivered to Apple’s outsourced production plant (Linden et al, 2007). A few of the Ipod components are high cost. The hard drive & flashmemory (function as temporary storage) are manufactured by Toshiba in Japan and Samsung in Korea. The majority of components are low cost. For instance the metal parts are made by Foxconn in Taiwan and the plastic components are produced in Singapore which developed from a low cost manufacturing platform to a higher-value added manufacturing centre (Brown, 1998, p.198). All components are assembled in the outsourced production plant in Shanghai. The transportation company Fed Ex delivers the finished Ipod to the worldwide 246 Apple stores and other electronic stores (Kahney, 2008, p.86).
Table of Contents
- Globalization and Apple's Response to the International Game
Objectives and Key Themes
This paper examines Apple's globalization strategy, focusing on how the company, initially a small local business, expanded to become a global player. The analysis explores the impact of globalization on Apple's operations and its response to the challenges and opportunities presented by the international marketplace.
- Apple's globalization strategy
- The role of global supply chains in Apple's success
- The impact of trade barriers on Apple's operations
- Apple's competitive advantage in the global market
- The evolution of Apple from a local company to a global player
Chapter Summaries
Globalization and Apple's Response to the International Game: This chapter analyzes Apple's journey from a small company to a global giant. It highlights the pervasive influence of globalization on businesses, impacting everything from corporate structures to consumer relationships. The chapter uses Apple's iPod as a case study, emphasizing that Apple doesn't manufacture the product itself but orchestrates a global supply chain to bring it to market. The chapter notes the significant role of Chinese manufacturing in the global market and how it has become nearly impossible for consumers to avoid using products made there. It also positions Apple as a company that dictates consumer preferences on a global scale. The chapter references Milton Friedman's perspective on the ability of businesses to utilize resources from anywhere to produce and sell products globally, providing a theoretical framework to understand Apple's global reach. The role of large multinational corporations expanding their global presence in the early 20th century is also discussed, showing a historical context for Apple's current situation.
Keywords
Globalization, Apple, supply chain, international business, global strategy, trade barriers, competitive advantage, iPod, multinational corporations.
Frequently Asked Questions: Apple's Globalization Strategy
What topics are covered in this document?
This document provides a comprehensive preview of a paper examining Apple's globalization strategy. It includes a table of contents, objectives and key themes, chapter summaries, and keywords. The main focus is on Apple's transformation from a small local business to a global player, analyzing its response to globalization's challenges and opportunities.
What are the key themes explored in the paper?
The paper explores Apple's globalization strategy, the role of global supply chains in its success, the impact of trade barriers on its operations, Apple's competitive advantage in the global market, and its evolution from a local to a global company.
What is the main focus of the "Globalization and Apple's Response to the International Game" chapter?
This chapter analyzes Apple's journey to becoming a global giant, highlighting globalization's influence on businesses. It uses the iPod as a case study to illustrate Apple's orchestration of a global supply chain, emphasizing the significant role of Chinese manufacturing and Apple's influence on global consumer preferences. It also provides a theoretical framework using Milton Friedman's perspective and historical context of multinational corporations expanding globally.
What role does the iPod play in the analysis?
The iPod serves as a case study to illustrate how Apple, without manufacturing the product itself, leverages a global supply chain to bring its products to market. It highlights the complexities of global production and distribution.
What is the significance of Chinese manufacturing in the context of this analysis?
The chapter emphasizes the significant role of Chinese manufacturing in the global market and how it has become nearly impossible for consumers to avoid using products made there, highlighting the interconnectedness of global supply chains.
What theoretical framework is used in the analysis?
The analysis utilizes Milton Friedman's perspective on businesses' ability to utilize global resources for production and sales to provide a theoretical basis for understanding Apple's global reach.
What keywords are associated with this paper?
The keywords associated with the paper include: Globalization, Apple, supply chain, international business, global strategy, trade barriers, competitive advantage, iPod, multinational corporations.
- Quote paper
- Sascha Schneiders (Author), 2010, Globalization and Apple's respond to the international Game, Munich, GRIN Verlag, https://www.grin.com/document/156045
