PGBM16 Global Corporate Strategy Sample Assignment (GC01683)

Executive summary

There are various international activities that have to perform Apple Inc. to expand and survive its business in the international market. Apple Inc. performs exporting and importing activities to buy and sell the goods with the international market. There are several types of customs and duties that have to pay by the organization. Exporting and importing is the sale and buy of the products from one country to another that is required by any country. In addition, licensing is another international activity that is performed by it to spread its products abroad with minimum risk. Apple also performs all the international laws and regulations to work in an ethical manner. At the same time, the organization has to make international strategies and business models to increase its effectiveness. It also does international arrangements through incensing to use intangible properties in the international market such as patent, logo, formula, process, etc. Apple Inc uses differentiation strategy as its major international strategy to deliver high customer value through its innovative brands in overseas markets. Through the help of this strategy, the organization has developed a strong market share in the overseas market. Apple uses this strategy to make a differentiation in the offerings across the national boundaries.

Table of Contents

Executive summary.

1.0      Introduction.

2.0 Open Innovation and Internationalization.

Open innovation vs. closed innovation in Apple Inc.

Current innovation strategy of Apple.

Impact of different factors on Apple’s approach to external innovation and competition.

2.0      Internationalization, Localization and Competitiveness.

4.0      Organisational Purpose, Profitability and Social Responsibility.

Corporate profitability.

Corporate social responsibility.

5.0 Personal reflection on learning.

Conclusion.

References.

1.0  Introduction

An international strategy is a strategy through which the firm sells its goods and services outside its domestic market. Firms can gain various benefits from international strategies such as increased market size, greater returns on major capital investments in new products and processes, greater economies of scale, scope and competitive advantage through a location or gaining low-cost labor and critical resources. Apple Inc. designs manufacture and markets personal computers and related personal computing and mobile communication devices. The company sells its products worldwide through its retail stores, online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and resellers. Along with this assignment help, the company operates in five segments: Americas, Europe, Japan, Asia-Pacific and Retail. AppleCare offers a range of support options for the customers of the company including software products, printed and electronic product manuals, technical assistance, and the AppleCare Protection Plan (APP). APP is a fee-based service that includes two to three years of phone support and hardware repairs.

2.0 Open Innovation and Internationalization

Open innovation vs. closed innovation in Apple Inc

Drucker (2015) classified innovation as open innovation and closed innovation. Open innovation is the use of purposive inflows and outflows of knowledge to accelerate internal innovation, and expand the markets for external use of innovation, respectively (Chesbrough (2015). This paradigm assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as they look to advance their technology. n other words, open innovation is about linking internal and external resources to jump into opportunities to bring to market better innovation (Michalko (2014). On the other hand, Medina (2016) stated that closed innovation is a type of innovation where a business organization uses its internal R&D and/or talents to manage the lifecycle of innovation.

Current innovation strategy of Apple

Apple highly involves open innovation in comparison to closed innovation. The company is an icon of innovation and always meets its client needs developing technology in the smoothest and smartest possible way. It’s well known that the company keeps a tight lid on its employees, suppliers and partners, so their products remained a secret till the launching date (Apple Annual Report, 2018).

However, this style of close innovation results in technology that is highly conducive to open innovation and the Apple brand is almost synonymous with freethinking creativity. It is a unique case, as Apple is a unique company that shows the exception to the rule; where there is no need to open up innovation processes in order to build great products. The key fact is that innovation is in Apple’s corporate DNA, something not easy to replicate for other companies (Apple Annual Report, 2018).

The value of open innovation along with closed innovation is increasing in Apple business: The open innovation does not lie in any particular industry or business organization, which is growing rapidly to a wider extent. According to Drucker (2015), this innovation also lies in the organizations that can practice their innovation by breaking down their bureaucratic culture. Apple is rejuvenating its business by applying open innovation and breaking down its bureaucratic culture. In addition, Apple is achieving economies of scale by collaboration. Furthermore, Apple gets an advantage from the open innovation to engage its customers/partners within the business and take the outside-in perceptions. On the other hand, Apple has huge internal resources including the R&D department and talents to improve the closed innovation. However, Apple faces difficulties in the way of transforming both open and innovative into bureaucratic corporations (Apple Annual Report, 2018).

Apple can determine what can be open and what can be closed: The terms “Openness” and “closeness” are the decisions that rely on the design of the new product generation model. According to Drucker (2015), different from the other “open” plans, like open source, open innovation does not provide the assumptions of total information openness. In addition, there are no obligations of renouncing of property in the open innovation model. Apple applies the information sources which are available to develop a strong innovation pipeline to maintain the effectiveness of innovation management (Apple Annual Report, 2018).

Open innovation makes the pie of creative ideas for Apple to grow bigger: As Chesbrough (2015) notes, innovation mainly benefits from being established and consequently commercialized in a more open environment. In the case of Apple, there is a huge flow of innovative ideas. In addition, it is basically an issue of getting used to the open innovation to work in Apple and commercialize the value at the current era with new features of convergence or hyper-connectivity. Furthermore, the digitalization specifies the activities of Apple in a hyper-connected and constantly joining the environment which gives the structural analysis. Open innovation’s evolution in Apple make great insights, take the benefits from all creative sources in a more open system and increase the innovation management to next level…………………………

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