Globalisation is an intricate interplay of management processes, such as communication, culture, manufacturing, business practices and the use of technologies on a global scale (Smith and Doyle, 2002). While tenets underlying globalisation are traceable long through the history, the new version of globalisation assumes an entirely different form. Globalisation is not just a change in a business operation (Smith and Doyle, 2002). Globalisation includes a far-reaching revolution seeking to transform our global views on geographical differences and open up our minds to global cultural and business perspectives and approaches. In business, globalisation is a system that should utilize its resources in a seamless collective harmony and coordination of processes on a global scale.
Apple Corporation, a high glossing technology company founded in the US, has enjoyed a fair share of globalisation impacts, especially, on the production and marketing of its highly popular technology products. With the increase in global competition among technology firms, new strategies are necessary to secure emerging markets anywhere in the world (Beck, 1999). Apple Corporation’s innovations play a big role in helping make the world a global village in the long and enduring process of globalisation.
The significance of globalisation is of relevance to all types of organizations, not just large multinationals and corporations seeking to advance global business agendas (Beck, 1999). Apple belongs to the industry facing the most sophisticated cases of globalisation impacts and having insufficient legal frameworks to handle some issues plaguing the industry, such as piracy and counterfeiting. The role of the issue of nature in technology innovation is also significant, which puts immense amounts of pressure and risks taken to make the launched projects beneficial to the company. This report scrutinizes the impacts of globalisation on Apple Corporation and proposes some recommendations to help it save global market trends and customer behaviour.
The concept of globalisation
Globalisation is relatively a recent concept (Timothy, 2010). To many economic analysts, it denotes the integration of previously autonomous economic structures into a fused economic system with little local impediments to business and trade activities. The globalized economy is characterized by the unrestrained dissipation of international trade barriers, such as tariffs, customs and relaxation of foreign investment restrictions to create cohesive markets. The most remarkable trait of globalized economies is a lack of clear limits on the scope of business operation, which a business has to adhere to in the globalized economy; trade regulations are standardized and allow corporations to run methodical and uniform homogenous business processes (Phillip, 2004). Thus, it is evident that because of the divergent social, economic and cultural dynamisms in the world markets, globalisation assumes some major features of these factors in different world markets.
Characteristic Features of Globalisation
Policies concerning globalisation are typically abolitionist. Barriers to the smooth flow of international trade are obliterated in favour of policies and practices that reduce the deterrence of global business and trade activities (Timothy, 2010). Changes in trade regulations are just one of many facets that play a major role in global economies. Other factors, which play key roles and are of a more intrinsic nature, define the world of globalized economy, as we know it today. Corporate organizations have to face each other in a fierce business arena, where protectionist and regressive policies offer no refuge to the companies finding the competition overwhelming and insurmountable. Consequently, a strategic decision-making, which is customer-focused, is essential for any firm that hopes to make it into in the future of the globalized market environments (Bhagwati, 2004).
Foreign direct investments
One of the most common and effective strategies, used by organizations to conquer global market frontiers, is using foreign direct investment (Foreign Policy, 2002). Despite globalisation advocating a global perspective to business, social conceptions and ideologies remain largely localized, and it is up to the business to adapt to the specific environment, if coherence is to subsist between the organization and the target customer base. Foreign direct investment gives a company a local feel. Since customers’ behaviour is largely defined by subjective opinions of consumers, foreign direct investments help reinforce this social inclination for the benefit of the organization.
Conclusions and Recommendations
Globalisation is a new economic order, the impacts of which are as broad as its reach (Phillip, 2004). Every organization has to deal with the impacts, the concept will have on its global business interests; so does Apple Corporation. The technology giant competes with other large technology firms in a highly dynamic global marketplace, characterized by unusually distinctive business environment features.
Globalisation exposes companies to new challenges and opportunities in the global market climate (Foreign Policy, 2002). The impact of some factors attains substantial magnification, while others linger in the periphery. For instance, politics and international relations play more significant roles, and the effects of trade restrictions on business advances take more subdued forms. Other important factors for running of globally competitive enterprises come to the fore, and it is upon these attributes that globalized business finds a means for sustenance. Apple Corporation has taken measures to get advantage from the benefits coming with global economic perspectives and established regional distribution and marketing networks serving its enthusiastic global fanatics and winning more others. For instance, some products are sold with buying patterns of the market under focus, namely, the peculiar trends of Asian markets.
Globalisation technologies are responsible for the unprecedented increase in global prosperity of businesses (Timothy, 2010). Notwithstanding the increase in trade in the past few years, globalisation has garnered an incredible amount of support from stakeholders in all sectors of the economy. The benefits of globalisation principles and policies have not escaped the eyes of policy-makers, and consequently, efforts to modify existing laws in favour of globalisation have been faced with the elimination of restrictive trade barriers, such as tariffs and customs.
Strategies involve the use of direct foreign investments for companies wishing to achieve global competitiveness (Beck, 1999). Outsourced manufacturing gives the company a chance to exploit cheaper labour markets and secure foreign markets in more habitable and favourable local business environments. Some countries are tax havens, which offer the company extra benefits connected with its profit and revenue. Investing in Asian markets bring other benefits as well. For instance, in Asian markets, labour is relatively cheap, while the market potential is very impressive, causing the concentrated population of the region. The economic development of Asian markets offers a kind of climate for Apple to lay firm basis for the global domination of technology markets. Apple has already identified the potential for this enticing business venture and has experimented successfully with its landmark innovation, iTunes back in 2004, with very encouraging results.
Research into the topic of globalisation ensures that Apple will remain and progress to higher achievements in the technology industry (Foreign Policy, 2002). Considering the relative newness of the globalisation impacts on business, and, especially, on technology manufacturing companies, Apple should carry out considerable research into the means of using forces of global markets to their advantage, while mitigating negative effects, exposed by globalisation to organizations.
Multinational organizations are now considering merging for the benefit of greater market impacts and brand enrichment (Timothy, 2010). Apple can consider merging with related organizations to come up with products that raise organization’s brand loyalty and popularity. Merging can win numerous advantages to an organization. For instance, joint innovations can lead to sharing of manufacturing technology, thus, enhancing the quality of products. Another benefit, Apple can reap with well-considered merging, includes sharing of resources, thus, reducing the effective cost of production. Because of the brand popularity Apple enjoys, merging with a reputable technology-related firm with better distribution networks would mean both a better market for Apple products and reduced costs, because of shared resources.
Globalisation inevitably impacts on any business aimed at succeeding in the current global market. Depending on the nature of business corporations, the impacts assume different and varied forms. For technology companies, the global reach of products plays a major role in determining the company that will come out ahead in driving innovation and brand loyalty among highly dynamic customers. Service industries, for example, banking industry, are the first to be affected by the impacts of globalisation. Technology industry is also highly influenced by globalisation and especially given the volatile nature of the industry.
The wave of globalisation rides on the progress in technology. Technology is behind the globalisation phenomenon, and continues to advance it in the way that keeps analysts of current global markets amused. Global markets change their forms each year, and the company is to learn new tactics to stay afloat and competitive in the radical economic environment. The role of technology in pushing the theme of globalisation is undeniable. Communication is behind the intricate and highly sophisticated interconnection between information and business processes across a wide range of business segments, especially the financial sector. By means of the use of technology, millions of transactions are made every day by globally manifested institutions that have worldwide legions of customers.
Apple Corporation is one of the top technology firms in the world having major competitors. For a company of such global magnitude, the issue of globalisation is momentous and significant (Foreign Policy, 2002). The company is a case study for successful application of globally effective business process in almost every step of the business process from production, management, communication, innovation, marketing, and adaptation to cultural aspects of target markets in recognition of the business significance, which each of these factors bear. As far as new changes come with globalisation, Apple has positioned itself both to deal with and benefit from the aspects associated with this booming business phenomenon. The purpose of this paper is to highlight some strategies; Apple Corporation may adapt to remain competitive in the globalized market economy.