In order to successfully analyse Apple, the Star Analysis (Spuller, 2007) framework will be applied

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10009160        International Business

Achieving Global Competitive Advantage: The Case of Apple

The organisation I have chosen to analyse in this assignment is Apple Inc. Apple is a global corporation that specialises in personal computers, computer software and other such technologies. Probably most famous for its Macintosh line of computers, Apple has become a strategic global force in the technology market with enormous profits and revenue turnovers. Apple, which started off as Apple Computer Inc., was establish back in April 1976, California, and is still an American based organisation. The name was changed to Apple Inc. in January 2007 as the company looked to transfer its focus from purely personal computers, to consumer electronics in general, such as the iPod, for which Apple has become so recognisable for. In order to successfully analyse Apple, the “Star Analysis” (Spuller, 2007) framework will be applied. “Star Analysis” provides a general guide and basis upon which to analyse a range of markets and countries, relating to a specific corporation. This should demonstrate how Apple attempts to achieve global competitive advantage, through five different features.

Home-country Features:

The first section that this assignment will look at is the home-country features. Apple Inc. was established in California, USA, and that remains its home-country to date. Despite moving into many foreign country markets, Apple has maintained its headquarters in Cupertino, California and continues to do so. Brand nationality is an important factor to consider when attempting to achieve competitive advantage in other countries. The brand nationality can either hurt or help sales, depending on how the home country is perceived amongst the potential customer countries. For example, Apple has done well in the UK as customers here see the USA as quite an advanced nation, a nation from which they would feel comfortable and confident buying technological products from.

Furthermore, when looking at the home-country features, one theory useful to touch on is Porters Diamond Model (Michael E. Porter), which suggests that some, nations are more competitive than others on a global scale. The model contains four determinants which Porter argues can act as bases for the nation to eventually become globally competitive. These four determinants are factor conditions, demand conditions, related and supporting industries and firm strategy, structure and rivalry. Factor conditions can include high amounts of raw materials and a highly skilled workforce. In relation to Apple, America is a well-developed nation with plenty raw materials and in most scenarios a very skilled workforce, or at least the potential to develop one, being an extremely wealthy nation. These are factors that can be built upon in order to gain more advanced factors of competition. In terms of demand conditions, the home-country demand for Apple has always been very high, which has in turn, increased the global competitiveness of local exporters and competitors. It also has given Apple enough confidence and evidence to take their company abroad to other nations; through innovative new products and improvements in quality. The final two points of the diamond mention the importance of local supporting industries and suppliers, which can potentially lead to greater competitiveness in national firms, and the firms’ strategy, structure and rivalry; the domestic market Apple competes in is very competitive which enhances the chances of being competitive on a global scale, with innovation and development.

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Competitor-country Features:

Throughout the years, Apple has generated many breakthrough technological products, from its much acclaimed operating system (Mac OS), to the revolutionary ‘iTunes’ and more recently, the ‘iPhone’ and extremely high tech tablet, the ‘iPad’. It is largely down to a highly competitive global market that Apple has been able to maintain its stance at the top of the digital consumerism market. For instance, there are so many competitors in the market for Mp3s, such as Sony Corporation and Sharp Corporation; in developing the ‘iPod’, Apple demonstrated its ability to produce innovative products whilst under pressure from competitors. ...

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