Apple (overview)
It is the American Multinational Company that is headquartered in the California that develops designs, online services, and computer software as well as sells the electronics of the customers. The firm came into existence in the year 1976 1st April with the help of Steve Jobs, Ronald Wayne and also Steve Woznaik. In the first place the company was known as the “Apple Computer”. It reached the heights like no other company in the world.
Identifying the markets
Host country- It is mainly a country where a firm that is based in another country has the business activities. According to some of the reports that is released in 2020 it has been stated that India is ranked among top 10 improvers for the third time. Throwing light on the above-mentioned discussion, it can be said that the mobile phone manufacturing in India has grown by almost 7% concerning the volumes as well as 6.54% in terms value between 2007 as well as 2018. This country also produces 11% of the mobile phones in the entire world. It is needless to say that the importance of the electronic manufacturing sector, India created excellent environment adopting several important policies. The mobile manufacturing sector is mainly open for the 100% foreign direct investment. This country’s remarkable progress in this sector is mainly helped by an attractive policy environment (Corcoran and Gillanders, 2015).
However, Apple must note down the fact that Indians are highly guided by their religions as well as their shared values (Kumar and Sethi, XXXXXXXXXXFurthermore, building excellent business relationships along with the trust in this country is highly important so they must be prepared in terms of spending a lot of time at the dinners, meetings as well as social clubs with the significant business partners. Observing the potential market in terms of manufacturing the mobile phones it can be said that Apple have selected a perfect marketplace as India produces significant amount of mobile phones in the world (World Bank, 2019).
Home country- It has been observed that the home country of Apple is in California in U.S. California’s mobile phone manufacturing market is one of the biggest industries; it has the potential in terms of continue growing as well as creating a lot of markets. After China it is U.S. that shares almost 16% of the total world market in the mobile phone manufacturing segment. However, during the time of Covid-19 it is assumed that consumers are much more conscious in terms of their spending and as an outcome it is extremely hard for imagining that it won’t be affecting the purchases of the smartphone.
Resources of the company
It can be said that there are huge amount resources of Apple. However, it is needless to say that the tangible resources of Apple are their smartest CEO, programmers, designers, engineers, software, hardware, suppliers along with the retail stores. The founder as well as the CEO of company was one of the most valuable and main asset to the firm. On the other hand, it can be also said that most of the resources in terms of this company is primary resources are quite basic. Financial resources, physical resources, reputational resources, human resources, intellectual resources are found out to be the main strengths of Apple.
Did they generate competitive advantage?
As mentioned in the above-mentioned segment that Apple has huge amount of resources so it is quite evidence it tend to generate competitive advantage for the firm. There are different resources of the firm that have helped the firm to retain and strengthen their competitive position in the marketplace. However, the strongest fields of the Apple are the reputational as well intellectual resources. It is the most unique resources that tend to set the company stand in the topmost position among their potential competitors. One of their main philosophies is “Think Different” that binds the various sectors of Apple. Additionally it pushes them for innovation and connects them toward the offerings of the new product along with the technology. It tends to result in enriching the intellectual resources of the firm as well as in the long run enhancing its reputation for the quality products. One of the major sources in terms of the competitive advantage for the firm is its
and equity. It is needless to say that the firm has built a highest level of the trust in the marketplace. Apple is mainly known for its technology as well as the greatest quality products. The consumers of Apple are always willing to pay premium price for the products which also an indication in terms of the strongest equity of the firm.
Why or why not?
Resources generate competitive advantage for the firm to a great extent. Competitive advantage of Apple is created with the help of the resources for achieving a differentiated product. Apple also positioned itself in its industry with the help of the differentiation. It is the decision that is also one of the most important elements toward the competitive advantage of the firm. The firm resources also results toward the sustained competitive advantage without any doubt for Apple.
How did they help the firm to take the opportunities in the host country?
The above-mentioned resources will be helping the firm to take a lot of opportunities in India. For example, with the help of the financial resources they will be able to achieve the business objectives. Good financial resources in India will help their business to make effective use in terms of their resources. On the other hand, the physical or the human resources will be providing excellent performance management, pay, training and development and onboarding the individuals in India reinforcing the value of their business are also essential components of the business culture that is highly covered by HR (Chaklader and Gulati, 2015).
If not why they will enter the market? For gaining resources?
In the previous segment it is already stated that the resources of Apple will help them to take the opportunities in India.
Concepts
The concepts that are used in this project are of VRIO in terms of the resources the company have.
References
Chaklader, B. and Gulati, P.A., 2015. A study of corporate environmental disclosure practices of companies doing business in India. Global Business Review, 16(2), pp XXXXXXXXXX.
Corcoran, A. and Gillanders, R., 2015. Foreign direct investment and the ease of doing business. Review of World Economics, 151(1), pp XXXXXXXXXX.
Kumar, R. and Sethi, A., 2016. Doing business in India. Springer.
World Bank, 2019. Doing business 2020. The World Bank.
Peer-reviewed sources
You could've spoken more on the identifications of resources and competitive advantages Apple processes in their home and host market. Then once you speak on resources, you can explain the competitive advantages created from them in Apples favour and how Apple leverage these advantages in the home and host market.
I would say you may have misinterpreted the assignment requirements as your understanding of the relevant concepts needed arent shown. You touched upon the VRIO framework, however, spoke nothing on Apple resources by utilising this framework. I would definitely recommend using more concepts throughout your next submission to show your topic knowledge.
You have listed various resources of Apple which are relevant to the business, and when you talked about whether they generated competitive advantages you included many business theory terminologies. For the next submission, I would definitely include further peer-reviewed references in this aspect of your report.
You haven't included many resources with only four embedded throughout your work. I found the references used were also quite dated for the issues relevant in your report, I suggest using sources from the past three years in your next submission for relevance. I would definitely recommend obtaining further peer-reviewed references which can support you throughout your work.
Introduction
Home Market or Domestic Market:
The Home market, also known as the Home market or Home market, is a market for buying and selling goods and services within a country. Compared with international, foreign, foreign or global markets, its market is much smaller. For example, Apple Inc mainly operate in USA as their home market.
Host Market or Global Market:
Host trade refers to the trade of goods, services, technology, capital and/or knowledge that cross national borders on a global or transnational level. It includes cross-border transactions of goods and services between two or more countries. Capital, skills, and personnel for the production of host physical products and services, such as finance, banking, insurance, and construction. Host business is also called globalization. In order to conduct business a
oad, multinational companies must build
idges between various national markets in the world market. Two macro factors emphasize the upward trend of globalization.
Risk arises from a firm's liability of outsider ship
Liability for Foreigners (LOF) is a well-known concept in international business. LOF is based on the idea that companies in foreign markets will incur social and economic costs. Existing literature acknowledges that companies have the ability to overcome LOF during internships. Changes, but he did not discuss.
Considering Apple in this case there are two sources of TFO: green TFO and corporate TFO.It comes from the environment of the home country and the host country. On the other hand, business-based LOF is derived from the characteristics of the business, including ownership structure, business resources, training, and network connections (for example, ownership). Apple Inc. Belong to a group of companies. Compared with emerging market companies, the environment and corporate TFO of emerging market companies are different. Putting forward verifiable recommendations on how companies and environmental factors affect TFO, and provide directions for future research. (Acheampong, G. and Dana, L.P., 2017)
Differences between home and host markets increase a firm's liability of foreignness.
A. Home Market:
Apples environmentally friendly LOF originated in the country of origin i.e. U.S.A. The degree of institutional development in these countries and the degree of adaptation to various factors affecting various aspects of business activities vary. The institutions that affect LOF include three aspects: supervision, regulation and awareness. Regulatory agencies are more formal, while regulatory and cognitive agencies are more informal. Both the formal and informal aspects of an organization affect the way a country conducts business.
B. Host Market
The income of foreign companies includes financial and administrative resources, scale and intangible assets (Nachum, XXXXXXXXXXIn contrast, many companies in developing countries often lack such resources. The Apple Inc. markets account for about 15% of the average wealth of the 100 largest emerging market multinationals. In this case, the (perceived) resource gap between foreign companies and local companies can contribute to LOF by