Apple in China Harvard Case Solution & Analysis

Apple in China Case Solution

Identifies and Summarizes problem at issue

It is expected that entering into China provides significant benefits to the company, however for the sustainable competitive advantage, the management of the company is facing certain threats such as leakage of the intellectual property, increase in the number of copycats and fake Apple stores as well as the decrease in the growth of the Chinese economy. The management of the company is concerned about all the above listed issues, which are also a serious threat for the future success and global image of the company.

Analysis

SWOT Analysis

Strengths:

Apple is considered as the largest player of the integrated consumer electronic ecosystem with greater market capitalization as compared to any other consumer electronic player, therefore Apple is recognized globally, and it is also the key strength of the company, which would help to enter in  China and other Asian market successfully.

Apple provides a wide range of product and is targeting the high end consumer market, which is also a success factor for the company whereas, providing range of products also enables the company to target the greater electronic consumers across China effectively.

Apple is operating globally and its entrance in China has strengthened the global supply chain as it is now stronger as compared to any other local and international player.

Environmental initiatives, which the management of the company, has taken for the welfare of the greater public is also the key strength for the company. Moreover, it provides advantage over the other electronic service providers that are not practicing the environment friendly processes.(J.-P. Onnela, May 1, 2007 )

Weaknesses:

It is expected that the management of the company is dependent upon the suppliers for the technological advances therefore, this increases the dependency of the company upon its suppliers, which is a weakness for the company.

Weak introductory performance of 5Chas also affected Apple’s image globally and in China as well, which is also again a weak and poor move for a successful company like Apple.

It is expected that Chinese market is the world’s largest market for the telecommunication sector therefore, many global and local players are operating in the marker and in this intensive marker, outsourcing the core operations is also a weakness for the company as it would increase the dependency of the company upon the third party. Moreover, it would also result in the leakage of the intellectual property, which would also weaken the competitive position of the company.(TL( Rakestraw)

Opportunities:

The Chinese economy is considered as the world’s largest economy and the standard of living of the Chinese people is also improving continuously, therefore there is a significant potential in the market, which could provide significant financial benefits to the company to support the future growth strategies.

Entering in China and establishing the production facilities in China could help the company by taking the advantage of local condition of China and could also provide benefits by providing easy access to the other Asian potential markets.

Moreover, China is considered as a growing market for energy efficient and green products therefore, increasing the operations in green products could also help the company to capture greater market share as compared to its competitors.  (Katherine Johnson, 1-1-2012)............

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