Apple in China Case Study Solution

“Apple in China Case Study Solution”  comprises 1881 words and includes the following –

• Porter Five Forces Analysis
  • Bargaining power of customers
  • Threat of substitutes
  • Bargaining power of suppliers
  • Threat of new entrants
  • Competition among existing players
• Big Strategic Shift – Moving from Factories in US to Contract Manufacturing
• Impact of the strategic shift to contract manufacturing
• Negative Impact of the Contract Manufacturing & Chinese Market Experience
• Alternative Approaches to Tackle the Organizational Change Challenges
• Recommendations to Manage Organizational Change

China is Apple’s fastest growing market but the road to success has not been smooth. This case documents Apple’s journey on this road to success; the role that Tim Cook played on this journey; the basic dynamics of China’s telecommunications sector, the world’s largest and most dynamic; and obstacles Apple is likely to encounter on the road to its future there. Apple’s products are predominantly contract manufactured in China by Foxconn, a Taiwanese company that was the focus of considerable criticism and negative publicity for poor working conditions and suicides among its young workers. Apple, an aspirational brand in China, was named the top brand in the world in 2015 by Brand Finance–followed in second place by their global nemesis, Samsung. The growing consumer power of the Chinese middle class has accelerated demand for Apple products. Apple’s popularity in China led to considerable counterfeiting or copying of their prototypes, products, know how, trade secrets, service model, and store concepts. It has spawned a cottage industry that supplies fake Apple stores with logos, uniforms, shopping bags, shelves and other accessories to make them appear real. Face-seeking behavior, the propensity of some Chinese to show off high status consumer goods, further spurs the activities of Apple counterfeiters and imitators to meet market demand. After more than a quarter century of continuous high levels of economic growth, China’s economy is cooling. Despite a panoply of obstacles, Apple CEO Tim Cook maintains that China is key to Apple’s bottom line now and in the future.

Case Authors : Mary B. Teagarden

Topic : Global Business