The identified global environment for Apple Inc. is Armenia. The characteristics of the new global environment include the following. First, Apple will strive well in a country that is politically stable. A country with good governance improves the efficiency of the company by increasing the manufacturing process (Jinjin, 2013). Besides, a politically stable country promotes the likeness of Apple and its products in the eyes of its dealers and consumers. Second, the country experiences dynamic changes in lifestyle. Due to the dynamic change of needs, Apple can continuously innovate and adapt to the new environment. Third, the country’s economy is stable. The high purchasing power in Armenia will increase the sale of Apple products. Fourth, the country has lower investment and market barriers. This gives Apple Inc. an opportunity to enter into the potential market.
The barriers that exist in the new global environment include culture and language. The company finds it hard to navigate the language barriers when customers send emails and make phone calls. The company will experience ineffective marketing campaign due to the cultural difference. The second barrier is legal protection. Citing Keillor (2013), the existence of poor legal protection to foreign firms is a concern to the company. The third barrier is competition from the existing companies. Apple faces stiff competition from Microsoft and Oracle.
The company will overcome the challenge of competition by employing differentiation strategy. Apple Company will have to create distinctive and innovative designs that will increase the artistic look of the products thus differentiating them from the competitor’s. Regarding the cultural and language barriers, the company will have to hire locals that will help with translation and learning of the culture (Khan, Alam & Alam, 2015). Lastly, with the legal protection, Apple will have to resort to fair and effective dispute settlement methods.
Jinjin, T. A. N. (2013). Strategic Analysis of Apple Computer Inc. & Recommendations for the Future Direction. Management Science and Engineering, 7(2), 94-103.
Keillor, B. D. (2013). Understanding the global market: Navigating the international business environment. Santa Barbara, Calif: Praeger.
Khan, U. A., Alam, M. N., & Alam, S. (2015). A Critical Analysis of Internal and External Environment of Apple Inc. International Journal of Economics, Commerce and Management, 3(6), 955-961.
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