Born Global Firms
Introduction
Revolution in technological advancements has come along with the innovations and inventions in modern Information Technology and the internet. The significant changes have formed and shaped the current society. It is also undoubtedly the sole factor that has shaped the world of business today. The patterns of behavior of the consumers can now be monitored, and the feedback provides leeway for devising new strategies for the business (Dzikowski, 290). The plans can, therefore, be tuned independently to meet the requirements of the modern markets around the globe. Customer needs are the most important when it comes to making strategies for the business. The limited resources can be used to maximize profits when the needs of the customers have been met. Factors such as the liberalizations of international barriers to trade and new market conditions have also enhanced the growth of economies to greater heights.
In the wake of such events of liberalization of trade barriers in the international markets, Born Global Companies emerged. A Born Global Company can be defined as “a business organization that strives to expand significant competitive edges from activities of resource utilization and sale of products in as many countries as possible.” The internationalization of such companies comes immediately after their inception into the business space. The businesses then start to accrue significant profits as a result of competitive advantage in the event of searching for new markets for their products.
The Born Global Companies often enter into the international business space regardless of the operational challenges faced by other operating businesses that are potential competitors. The entities also enter the market space irrespective of the styles of management that are unconventional. Business entities that have seen tremendous growth since their inception due to the Born Global routine are of much interest to researchers since some of them have bitten several odds in order to appear on the global charts. Nature with which such businesses enter the global space is mind-blowing. The newness, the smallness, and the foreignness in terms of liabilities o business operations make these companies special. It is surprising how large local competitors in the same line of products can be defeated competitively with a new and foreign company that is only beginning to make its first baby steps? The answer to this question is of utmost importance to provide an explanation as to the secrets to starting and growing an international organization.
Scope
Extensive research has been done to open the secrets to how the Born Global companies have been able to survive such intense competition in the global space (Dolata, 34). Many reasons have been pointed out, including the rapid advancement in technology which reduces operational costs and enhance feedback system that is efficient to both the organization and the final user of the product. The firms in question are mostly founded and operated by young entrepreneurs with a lot of enthusiasm in high-tech. The high-tech individuals, therefore, have a competitive advantage in the global space when it is a question of utilizing fast and efficient information technology in the manufacture and marketing of their products (Hartsfield et al., 119). As an entrepreneur, it is very important to know and understand what technology can offer in the business operations and how to tap such technology in enhancing efficiency in marketing. This paper will provide insights into Apple Company as an example of a Born Global Company. Apple has been known as one of the few successful Born Global Companies around the globe. It has exhibited tremendous growth ever since its inception in 1976 that has seen it struggle to rise up to where it now stands. The company was known for being innovative, and creativity was at its highest core. Apple solely rose to dominance, given the range of technologies it provides, and it since established itself as the pacemaker in the sector of mobile devices (Soh & Nik, 13). The company has kept a status that is formidable a long time after the first computers were introduced. The company has since established its customer base that has remained loyal to the company for quite a period.
Outline
Introduction
- A. Revolution in technological advancements which has come along with the innovations and inventions in modern Information Technology and the internet.
- B. In the wake of such events of liberalization of trade barriers in the international markets, Born Global Companies emerged.
- C. The Born Global Companies often enter into the international business space regardless of the operational challenges faced by other operating businesses that are potential competitors.
Scope
Extensive research has been done to open the secrets to how the Born Global companies have been able to survive such intense competition in the global space.
Marketing Strategies
Apple Brand
Apple Company created a brand whose image was the founder of the company, Steve Jobs. Jobs, at the inception of the company, became synonymous with the Apple brand.
Corporate Governance
The increasing conflicts between the shareholders and the management of Apple Inc., pushed for a more formidable policy structure from a corporate point of view to reduce such conflicts.
Corporate Social Responsibility
The company has a policy that ensures that it positively impacts the people in society to improve its general image in the eyes of the target customers around the globe.
Product diversification
Apple company has produced many diversified products since its inception in the market space.
Business Plan- Dynamic
One sole reason that led to the rapid growth of Apple company is its dynamic nature.
Branded Retail Outlets
The company felt the need to provide a profound experience of their products in the market.
Partnerships
Steve Jobs had an early move to enter into a partnership with Microsoft that was unexpected in the year 1997.
Top-skilled Personnel
In the wake of entering the new markets in Asia and Africa, the company created new job opportunities that saw it employs millions of highly skilled individuals.
Key Strategies for the First Trillion-Dollar Company
Breaking the barrier between customer segments
Creating a brand image culture
Avoiding war on pricing
Many tech companies have formed new entrants in the tech global market place for the past few decades. None of the new entrants has been aggressive enough and more influential than Apple Inc.
Apple Company Marketing Strategies
Apple Brand
Apple Company created a brand whose image was the founder of the company, Steve Jobs. Jobs, at the inception of the company, became synonymous with the Apple brand. The brand of the company became as famous as the company’s founder, Steve Jobs. He succeeded in expanding the company to other new areas of operation, such as the music industry, which helped in shaping the category of mobile. The Chief Executive Officer of the company divined what customers needed before they even needed it. Jobs was not only the major drive for new products, but he was also in the lead in the marketing of such products. He immediately started a new course for entering the mobile category in technology business immediately he came back as the CEO of the company in the year 1997 (Soh & Nik, 15). Despite the death of Stephen Jobs in the year 2011, the company still remained aggressive in the global market. It means that Jobs already created a brand that still holds up to date. Some of the experts in international trade believed that the business would suffer a big blow, given that there were plans set for execution prior to the death of the CEO. The company continued with its success irrespective of all this, thanks to the brand image initially created.
Corporate Governance
The increasing conflicts between the shareholders and the management of Apple Inc., pushed for a more formidable policy structure from a corporate point of view to reduce such conflicts. The aim of introducing functional corporate governance for the company is to ensure that there is reduced competition within the organization. The company has a decent policy on governance and ownership of the company. It has since seen the company grow without technical hitches within the management structure. The company has corporate guidelines, a majority of which are ICGN (International Corporate Governance Network) principles.
Corporate Social Responsibility
The company has a policy that ensures that it positively impacts the people in society to improve its general image in the eyes of the target customers around the globe. The company has insisted on safe working hours for its workers and has fronted the drive to alleviate child labor around the world.
Product diversification
Apple company has produced many diversified products since its inception in the market space. Apple is a company that began from humble beginnings aggressively grew steadily and saw the introduction of the personal computers, Apple II series, which included the Macintosh, followed by the iPod, then iPhone, iPad, and the Apple Watch. The release on new products by Apple company usually elicits excitement for its customers and developers of technological products in the tech industry (Cardoso, 46). The interests of customers and developers on what the company will come up with next still continue to energize the events of the company all over the world.
Business Plan- Dynamic
One sole reason that led to the rapid growth of Apple company is its dynamic nature. The business plans for companies exhibit constant changes over time. It is led by market structure. Steve Jobs kept on studying the structure of the market to be assertive of the audience or rather the customers who are the final users of Apple products. Jobs always had convictions that the company was meant for much bigger things than it was at the moment (Soh & Nik, 11). For the company to grow, it had to cut off its offerings. It, therefore, made multiple changes in the plan to accommodate more diversified products. The company expanded to MP3 players, tablets, digital watches, mobile phones, and more due to the release of the Final Cut Pro. The name of the company was also changed from Apple Computor Inc. to a new name, Apple Inc., to accommodate new products other than personal desktop computers and increase its competitive advantage over other companies that operate in the same line of business.
Branded Retail Outlets
The company felt the need to provide a profound experience of their products in the market. The company had the deepest knowledge of what the customers need. An experience of the company’s brand image. The strategy saw the company brand retail outlets of their products in most countries in the world. The sales of the company’s products shot over the bar, and customer loyalty was also achieved. The retail store of Apple company exhibits a state of the art design and inspires customers’ loyalty. The deigning of their own retail store was a major turning point of the company, and this boosted it in terms of competition. By the year 2015, Apple company had over 460 retail outlets all over the world. The end was the surge of the company in the mobile market. Now everyone all over the world wants to own an iPhone.
Partnerships
Steve Jobs had an early move that was unexpected in the year 1997. He made an announcement with its rival Bill Gate’s Microsoft and secured a huge investment of $ 150,000,000 in Apple. The deal, so Microsoft company supports the Microsoft Office software on the Mac computers. It helped the company to get back to its feet after a flagging reputation in the early 90s. He further partnered with other rival companies to manufacture mobile parts for them. It made the company realize huge profits as a result of such a move to take part in the manufacture of mobile parts for other rival companies such as Samsung. It, therefore, became a major supplier of mobile components in the market, and this boosted its competitive advantage over the companies that it manufactured mobile parts for.
Top-skilled Personnel
In the wake of entering the new markets in Asia and Africa, the company created new job opportunities that saw it employs millions of highly skilled individuals. For the success of any business organization in the marketing space, there is a need for a skilled workforce that understands the dynamics of the global and local market space. The company highly depended on the skilled workforce in the provision of feedback from the local markets, which were always useful in the decision making processes of the company regarding its operations. The employees hired are from diverse fields, including artists, historians, and musicians, creating a diversified fusion of its marketing strategies.
Key Strategies for the First Trillion-Dollar Company
Many tech companies have formed new entrants in the tech global market place for the past few decades. None of the new entrants has been aggressive enough and more influential than Apple Inc. All the arguments about this were put to rest immediately; the news broke, pointing out that Apple is the first company to own trillion dollars in assets (Clarke, 5). It literally shows how the company has transformed intensively since it was founded more than forty years ago.
Breaking the customer segment barriers was one of the key external strategies for the marketing of its products. People on both extremes in reference to the social settings at least carry an iPhone with them. Much of the success of Apple Inc. is due to the way the company markets its products. The customer targets of the company wERE never limited to demography or any other aspects that could potentially divide the market. The target customer for the company is everyone. It is the reason why the phrase “user-friendliness” is the defining trait of the company’s products. The advertisement for the company’s products makes use of fancy tech jargon in terms of specs for the products. It creates an image that is most attractive to the eye and which definitely boosts sales of the products. By not breaking segments in customer targets, the company has attracted new generations of users across the social divide. The company’s stock has since be boosted up to 15,000 percent from the start of the millennium.
Creating a culture in terms of the brand has also seen Apple Inc grow tremendously (Arocha, 18). The production of high-quality technology products has made everyone identify with the brand of Apple Inc. to symbolize quality. The type of culture has not been seen in any of the highly competitive brands in the market, such as the biggest rival Samsung. At the start of the company, Steve Jobs make a move, which everybody thought was crazy. He donated 9000 computers branded with Apple Computers Inc. logo. The move was critical in that many people identified with the brand of Apple even at the entrance of new products; the people still remained loyal to Apple Company. Apple Inc., Company also has a strong strategy and ain that, it never fight wars on the pricing of their products with other competitive companies such as Samsung. Many companies around the world believe that prices for their products are the main tool for competition. For Apple, Inc. pricing is done regardless of competition.
Conclusion
The paper dwelled on Apple Inc., Company as a case study on Born Global Companies. Apple Company is the first trillion-dollar company in the world in terms of assets. It has since grown from a humble beginning, and it actually started in a garage. What makes the success of any company is the kinds of strategies it employs in the operations of the business. A Born Global company is a company that has defied all the odds in the global market, including very strong competitors. As a small company that is starting, the chances of penetrating the global market are usually very slim. It is, therefore, very impressive for a company like Apple Inc. to press on aggressively into the market and become the number one company in the world. It is not surprising at all. Since the inception of the company, it has been keen on customer satisfaction through the provision of high-quality products. It, therefore, enjoys a large customer base in terms of customer loyalty around the world due to its traits regarding offering quality products. The company employed the three key strategies in order to put itself on the map as the number one company. The maintenance of the culture of branding, the fact that the company does not take part in pricing competitions with other companies, and breaking the customer segment barriers regardless of the high prices of some of its products. Any company that desires to penetrate the global market needs to come up with unique strategies to counter competition and enjoy customer loyalty. It is this virtue that made Apple become a renowned Born Global Company around the world. Another key strategy to maintain the top-notch in the rank by Apple is its ability to change plans and strategies depending on the current needs of the customers to ensure that their customers are satisfied. Customer loyalty has since seen most of its customers wait anxiously for new products that the company is planning to drop into the markets.
References
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Cardoso, Eve Alexandra Reyes Pinto. Examining the differences between the internationalization strategies of two of the major brands in the smartphone industry-Apple inc., versus Samsung electronics. Diss. 2017.
Clarke, Thomas, and Martijn Boersma. “Apple, the $1 trillion Company, searching for its soul.” The Conversation (2018).
Dolata, Ulrich. Apple, Amazon, Google, Facebook, Microsoft: Market concentration- competition-innovation strategies. No. 2017-01. Stuttgarter Beiträge Zur Organisations- und Innovationsforschung, SOI Discussion Paper, 2017.
Dzikowski, Piotr. “A bibliometric analysis of born global firms.” Journal of Business Research 85 (2018): 281-294.
Hartsfield, Samantha, Douglas Johansen, and Gary Knight. “Entrepreneurial orientation, strategy, and marketing capabilities in the performance of born global firms.” International Business: Research, Teaching, and Practice 2.1 (2017): 12-38.
Soh, Nik, and Nik Najihah. “AN ANALYSIS OF AN EXPLANATION OF APPLE INC.” (2019).