Lenovo: SWOT analysis

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Strengths/Weaknesses

  1. Vertical integration
  2.  Knowledge of China’s market
  3. Low cost production
  4. Strong patents portfolio
  5. Competency in mergers and acquisitions
  6. Synergy of knowledge and diverse workforce
  7. Poor brand perception in the developed economies
  8.  Low differentiation
  9.  Commodity (computer hardware) products

Opportunities/Threats

  1. Growing India’s smartphone market
  2. Growth of tablets market
  3. Obtaining patents through acquisitions
  4. Tablet market growth
  5. Profit margin decline on hardware products
  6. Slowing growth rate of the laptops market
  7. Saturated smartphone markets in developed countries
  8. Rapid technological change
  9. Intense competition

SWOT Analysis of Mtn Group

Strength

  1. Support sales activities by understanding customer’s business
  2. Strong brand name
  3. Good brand visibility and advertising

Weakness

  1. Limited global operations
  2. Severe price competition in the market

Opportunity

  1. Up to date information on competitor’s activities
  2. Growing mobile and internet market across the globe

Threats

  1. Too many expansions can lead to loss of focus
  2. Mobile number portability may hamper growth

In the society which with a fast economic development and it’s getting very competitive in the marketing, if a company wants to exist and develop, a good strategic plan is very important to help the company win in the competitive marketing. As a strategic plan department manager, the ability of make strategic plan is very important. But how to make a good strategic planning for a company? So analysis the external environment is very helpful to managers achieve a greater understanding and appreciation of the external environment, leading to improvement in long-term and strategic planning; highlighting of the principal external environmental influences generating change and anticipation of threats and opportunities within a timescale of long enough duration to a response to be considered. Also the tool which called PESTLE analysis is good for analyzing the external environment. But what is PESTLE analysis? So the following will explain what PESTLE analysis is and focus on analyzing the Lenovo Corporation’s external environment which likely major influence in their business environment to be faced in the next five to ten years.

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Marketing Mix Dell

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marketing opporunities & marketing mix assignment lenovo vs dell brands:

Lenovo:

The company was founded in 1984 by a group of eleven engineers, headed by Liu Chuanzhi, in Beijing. This company had become the biggest PC manufacturer of domestic and distributed third party products through its wholesale business. Today,these two companies lenovo and IBM are united under the Lenovo name. With Lenovo’s landmark acquisition of IBM’s Personal Computing Division in May 2005, the new Lenovo is a leader in the global PC market and products serving enterprises and consumers the world over.

Dell:

Dell Computer was founded as PC’s Limited in 1984 by university student Michael Dell. The company was so successful that within two years PC’s Limited had distribution offices in Europe, and changed it’s grammatically-incorrect name to Dell Computer Corporation. Selling assembled computers from his dormitory room, By 1991, seven years after selling it’s first computer, Dell Computer Corporation was listed in the Fortune 500. Dell was one of the first companies to offer computers for mail order via the Internet.

The Dell Coupon program made many Internet models cheaper than other brands, and continues to be popular to this day. Market segments From homepage of Lenovo , we can see, there are two main part of his market segments : Professional-grade and Lifestyle. Professional-grade like server computer , the top-level desktop and laptops. These products always make for the professional staff or hardcore players (hot game players). They are very expensive , more than fifteen thousands RMB. But lifestyles are cheaper and closed to our wallet .

You can only pay about five thousands RMB. To dell, they are divided into four levels. For home. For small and medium business For public sector and For large enterprise. So we can chose the right level that is perfect for us. From above-mentioned, we can see Dell is more refinement than lenovo and so convenient that chose we need from their homepage. Lenovo’s computers on the main advantage reflected in the price for China’s national conditions, but Dell’s computers main advantage is personalized for each consumer to customize their computers.

Dell is primarily direct online marketing, so he saved a lot of middle cost in the links, so if the same price Dell is better than the Lenovo’s . But Lenovo is the state-owned brand, he has the town level dealers , so warranty is more convenient . Even though dell and his similar products in the high cost, but he has little dealers, and only at the provincial level can warranty.

Distribution: Both of them are global multinational corporations. They operate in the world, products are sold in all countries. Lenovo is headquartered in New York, Purchase.

Two main operations center set up in Beijing and North Carolina. The sales network of Lenovo’s throughout the world. Lenovo has more than 19,000 employees in the world. Lenovo,the largest IT supplier of China, is making moves to consolidate its distribution channels nationwide to streamline its sales in retail sectors and spark profitability. Dell has 13 markets in the region to carry out linear order business at present. Including Australia, Brunei, China, Hong Kong, India, Japan, Korea, Macau, Malaysia, New Zealand, Singapore, Taiwan and Thailand.

Dell’s new plant in Xiamen, is the second production base in China. It is the fifth largest market for Dell in the world and the fastest growing markets business development.

Promotion: Commercial desktops are likely to be the backbone of the international market Lenovo race, and China is the largest piece of “experimental field. ” Lenovo has agents through the distribution to the provinces. Through increased the influence of brand to cities to open up new markets.

The success of Dell’s direct model is that the main factors: first, rapid response, on-demand production,Powerful order processing system and production system; Second, powerful data processing capabilities and advanced information management technologies; Third, the excellent customer service, strong call center services; Fourth, a strong and efficient supply chain; s Fifth, low cost and price wars.

CONCLUSIONS:

Lenovo’s corporate culture is people-oriented. Lenovo believes that talent is the development of the productive forces.

Therefore, the association proposed for each employee to provide equal development opportunities. Employees and business are interdependent and mutually reinforcing . Dell’s corporate culture, summed up by the company as “Dell soul”, which describes how Dell is a kind of company, it is the Dell service code of conduct for customers around the world, it eventually became Dell’s “winning culture” basis. Difference: Lenovo is the mode of distribution . Dell is the direct model. Lenovo’s core idea: the pursuit of individual employees into long-term development into the enterprise.

Dell’s core competencies: No direct sales, direct sales model is based on low-cost operating system for parts supply and assembly of the implementation of capacity. Both the Lenovo or Dell are staring at each other tightly, while Lenovo is lagging behind Dell now. Clearly, Dell and Lenovo are the real heart of the competitors of the other side. Lenovo is the leading of Asia-Pacific region, while the region’s growth and development potential can not be ignored by Dell, dell is also focus on the global market. Lenovo make Dell feel more and more pressure.

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Marketing management of lenovo’s photostat machine

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Company Description: – ( INTRODUCTION )

Lenovo has a good name and frame in the market. Lenovo group limited is today the 3rd largest personal computing machine maker in the universe particularly in Asia. But one m traveling to present a new merchandise which is “ Photostat machine ” . As Lenovo is a good trade name so one will non happen any sort of trouble to present a new merchandise. The procedure must turn to all the stairss to necessary to get down volume production, develop need documentation, and back up the merchandise. Improved merchandise launch consequences in faster clip net income activities are better planned and co-ordinate and more tightly integrated. System informations are better understood and system may be better integrated. System informations are demand are better integrated.The consequence in better production ramp-up, more expeditiously selling, a sale force better integrated selling the new merchandise and a service and support group better able to service and back up the new merchandise.leading to greater client credence. After Hewlett Packard, dingle. Lenovo creates a most advanced merchandises and service. Lenovo offers a heavy monetary value line and they already launched a broad scope of merchandises such as laptops, desktops and so many merchandises.

BUSINESS Mission: –

I am seting my merchandise portfolio to a planetary participant. It will assist in approaching future clip. i introduce a new merchandise. one create this merchandise for the creative activity of planetary platforms and development of local platforms to accommodate state specific demands. focused on cost, increasing merchandise complexness, making a multi location merchandise.

In our quickly altering and extremely competitory markets successful new merchandise launch is thought by many but the job is that the deficit of thoughts and disbursal in production and marketing new merchandises without any warrant of success. No 1 know that the produst u R traveling to establish is traveling on top or it fails.

Thoroughly my calling I have seen many new merchandises and talked 1000 of invitors who could hold saved themselves thousand of dollers and increase the likeliness of success if he had model for developing thoughts and fix it for market.

By seeing all this one take experience and my experience leads us the following six measure procedure after establishing a Photostat machine.

1 ) First one see that who is the mark client.

2 ) How do i desire to travel to market i.e produce the merchandise, sell the thought or license the merchandise to person else to bring forth the market.

3 ) Explore the merchandise.

4 ) What are the market research stage.

5 ) Analysis and development of market program.

6 ) Execute the program and establish the merchandise

By taking all this things in my head I starts work

Our concern mission is launch our merchandise in such a manner that it will provide all our the worls and derive more and more net income.

Selling Aim: –

Marketing aims of my merchandise is to catch the attending of the clients.

Aims can be set in two degrees: –

1. Corporate Degree: -These are those aims which are concern in concern as a whole or a administration. I am taking this two type of aims in establishing Photostat machine.

2. FUNCTIONAL Degree: -these are particular sort of selling activities.

By these two I m besides take into consideration on smart standards which is as under:

Specific- The aim should province exactly come once more? Is to be achieve.

Measurable- An aim should be knowing of measurement – so that it is possible to make up one’s mind whether ( or how far ) it has been achieved.

Achievable- Ahe aim should be matter-of-fact given the province of personal businesss in which it is set and the capital available to the concern.

Relevant- Aims should be applicable to the people responsible for accomplishing them.

Time Bound- Aims have to be set with a time-frame in head. These clip bound besides need to be realistic.

CUSTOMER PROFILE: –

I m traveling to establish a new merchandise of Lenovo. my merchandise is the photostate machine and I introduce this merchandise in the market it has a to maintain client profile besides. Customer profile means what are the client demands and what they except.

They besides see that what are the stratergies they use

4 P ‘S OF THE LENOVO ‘S PHOTOSTAT MACHINE: –

Merchandise

Name- Lenovo ‘s Photostat machine is the name of my merchandise.

Merchandise variety- it is new, different, usual, designed to make full an identified demand. It is launched assorted colorss.

Monetary value:

List price- The list monetary value of the Photostat machine is starts from 65000/ . It is less expensive Photostat machine than that of its rivals.

After the new Photostat machine is being developed the following measure is to put the monetary value.Firstly I will doubtless look to market rivals for indicants of how monetary value should be set. I will put competition based pricing.Like I can see traveling rate monetary value to put monetary value.

Promotion

Advertising- Ad is done by utilizing assorted methods like media advertisement, intelligence paper advertisement, magazines, etc.

Gross saless promotion- Gross saless publicity of Photostat machine is done by offering gifts and other points to pull the distributers.

Public relations- Photostat machine is so far really good in keeping good relationship with its clients by stating them about new invention in the bing merchandise.

Topographic point

Locations- The Photostat machine provides a good service to its clients.

Coverage- Photostat machine covers all local countries really efficaciously. This is the most of import factor, and so takes action ; make certain they can make every country so that it helps in school and concern intents.

Channelss

& A ; Oslash ; Manufacturer to dealer

& A ; Oslash ; Manufacturer to client

SWOT ANALYSIS

STRENGHTS:

& A ; Oslash ; It has good productProducts

& A ; Oslash ; Good service quality

& A ; Oslash ; Global coverage

& A ; Oslash ; Strong and effectual use

& A ; Oslash ; maintain up to day of the month on what competiton is making

Failing:

& A ; Oslash ; Entire plus turnover is one of the failing of my photostatmachine.

& A ; Oslash ; Lack of invention

Opportunity

& A ; Oslash ; My merchandise has the chance to catch the market portion.

& A ; Oslash ; Peoples are going more conceious towards proficient accomplishments i.e computing machine cognition. So one develop a multifunction Photostat machine should aim these peoples by offering alone merchandises.

Menace

& A ; Oslash ; The chief menaces is its rival. There are batch of rivals who lower down the sale of merchandise.

Selling Plan: –

Plan that inside informations a company ‘s selling attempt ; besides called action plan.marketing scheme. The selling program may be laid out for an single merchandise or for the full company and all its merchandises. In either instance, the program specifies the selling ends and aims to be achieved over a specific clip period and so lays out the assorted schemes to be followed in accomplishing them. It will besides define the duties for transporting out the program. Well I am looking to present a new Photostat machine of lenovo in the market.To full fill this intent foremost I should hold to fix a market program through which I may happen out the market state of affairss. I am following seven stairss as selling program to develop my Photostat machine in the market. These points are as follow-

1 ) Selling Environment

2 ) NEW PRODUCT DEVELOPMENT

3 ) Pricing OF THE PRODUCT

4 ) Launching Political campaign

5 ) Ad AND PROMOTION

6 ) LOGISTIC AND SUPPLY CHAIN

Selling environment

The selling environment in India is undergoing a rapid transmutation, and this is peculiarly important for Indian companies. Changes in authorities ordinances and economic policies, forces of globalization and competition, and the evolving nature of ingestion behaviors are supplying important chances. Many companies have started using the chances that are emerging in the altering selling environment. As the market of consumers are acquiring educated they are giving more emphasis on quality than monetary value. Selling environment is made up of external factor which is further made up of micro and macro factors. I am taking in to consideration all these factors while establishing a Photostat machine and conveying it into the market.

A big figure of forces shape the selling environment. To assist form your thought, it ‘s utile to sort the assorted forces as falling into either the

( 1. ) Direct market environment.

( 2 ) The external market environment.

The direct environment of any generic market or product-market includes clients, the company, and rivals. The external market environment is broader. The variables of the external market environment autumn into four major countries:

1. Economic environment.

2. Technological environment.

3. Political and legal environment.

4. Cultural and societal environment.

In the short tally, the selling director does n’t command the variables of the selling environment. That ‘s why it ‘s sometimes utile to believe of them as unmanageable variables. On the other manus, the selling director can and should carefully see the environmental variables when doing determinations that can be controlled. For illustration, a director may non be able to make anything to countervail the strengths of a specific rival, but the director can choose schemes that lead the house into product-markets where that house does non vie, or where competition in general is non as strong. We ‘ll see how they shape chances restricting some possibilities and doing others more attractive. A company must make up one’s mind where it ‘s traveling, or it may fall into the trap expressed so good by the citation: “ Having lost sight of our nonsubjective, we redoubled our attempts. ” Company aims should determine the way and operation of the whole concern. It is hard to put aims that truly guide the present and future development of a company. The selling director should be heard when the company is puting aims. But puting whole-company aims within resource bounds is finally the duty of top direction. In this sense, whole-company aims are normally outside the selling director ‘s “ control. ” It would be convenient if a company could put one aim such as doing a net income and allow that function as the usher. Actually, nevertheless, puting aims is much more complicated, which helps explicate why it ‘s frequently done ill or non done at all. The undermentioned three aims provide a utile starting point for puting a house ‘s aims. They should be sought together because in the long tally a failure in even one of the three countries can take to entire failure of the concern. A concern should:

1. Engage in specific activities that will execute a socially and economically utile map.

2. Develop an organisation to transport on the concern and implement its schemes.

3. Earn adequate net income to last.

The first aim says that the company should make something utile for society. This is n’t merely a “ humanitarian ” aim. Businesss ca n’t be without the blessing of consumers. If a house ‘s activities appear to be contrary to the consumer “ good.

New merchandise development-

Generating THE IDEAS

The new merchandise development procedure starts with the hunt for thoughts. New merchandise development requires garnering thoughts to be evaluated as possible merchandise options. For many companies thought coevals is an on-going procedure with parts from inside and outside the organisation. Many market research techniques are used to promote thoughts including: running focal point groups with consumers, channel members, and the company ‘s gross revenues force ; promoting client remarks etc. Customer demands and wants are the logical topographic point to get down the hunt. Employees throughout the company can be beginning of thoughts for any merchandise.

Screening

The thoughts generated in thought coevals are critically evaluated by company forces to insulate the most attractive options. Depending on the figure of thoughts, showing may be done in unit of ammunitions with the first unit of ammunition affecting company executives judging the feasibleness of thoughts while consecutive unit of ammunitions may use more advanced research techniques. Acceptable thoughts move on to the following measure.

Market Research and Analysis

• Situational Analysis

• Product/Service Analysis

Our strengths are:

– Low monetary values

– High quality merchandises

– Experienced Staff

Our failings are:

– Limited distribution channels

Target MARKET STRATEGY

• Students of the university

• Staff of the university

• Corporate universe

• schools

Business Analysis

Now in concern analysis the procedure becomes really dependent on market research as attempts are made to analyse the viability of the merchandise thoughts. Much attempt is directed at both internal research, such as treatments with production and buying forces, and external selling research, such as client and distributer studies, secondary research, and rival analysis. By concern analysis we come to cognize about gauging entire gross revenues, costs and net income.

PRODUCT AND MARKETING MIX DEVELOPMENT

Ideas go throughing through concern analysis are given serious consideration for development. Companies direct their research and development squads to build an initial design or paradigm of the thought. I will besides get down to build a selling program for the merchandise. Once the paradigm is ready the seller seeks client input. In add-on to deriving client feedback, this measure is used to estimate the feasibleness of large-scale, cost effectual production for manufactured merchandises. Chiefly at this phase the company will find weather the merchandise thought can be translated in to a technically merchandise.

Market Testing

After direction is satisfied the merchandise is ready to dressed up with a trade name name and set in to a market trial. In some instances the seller accepts what was learned from construct proving and skips over market proving to establish the thought as a to the full marketed merchandise. But other companies may seek more input from a larger group before traveling to commercialisation. The most common type of market proving makes the merchandise available to a selective little section of the mark market ( e.g. , one metropolis ) , which is exposed to the full selling attempt as they would be to any merchandise they could buy.

Commercialization

If market proving shows assuring consequences the merchandise is ready to be introduced to a wider market. Some houses introduce or roll-out the merchandise in moving ridges with parts of the market having the merchandise on different agendas. This allows the company to rage up production in a more controlled manner and to ticket melody the selling mix as the merchandise is distributed to new areas.In commercializing a new merchandise, market entry timing is critical like if I have completed my development work and cognize that my rival is approaching the terminal of its development work so I will confront three choices-First entry, Parallel entry, Late entry. This determination involves extra consideration. It depends how we want to come in in market.

Analysis of competition will include pricing by direct rivals, related merchandises and primary merchandises

* Direct Competitor Pricing – Almost all selling determinations, including pricing, will include an rating of rivals ‘ offerings. The impact of this information on the existent scene of monetary value will depend on the competitory nature of the market. we must non merely research competitory monetary values but must besides pay close attending to how these companies will react to the our pricing determinations.

* Related Product Pricing – Products that offer new ways for work outing client demands may look to pricing of merchandises that clients are presently utilizing even though these other merchandises may non look to be direct rivals.

GOVERNMENT REGULATION

We must be cognizant of ordinances that impact how monetary value is set in the markets in which their merchandises are sold. These ordinances are chiefly authorities enacted significance that there may be legal branchings if the regulations are non followed. Price ordinances can come from any degree of authorities and vary widely in their demands.

Finally, when selling beyond their place market, we must acknowledge that local ordinances may do pricing determinations different for each market. This is peculiarly a concern when merchandising to international markets where failure to see ordinances can take to terrible punishments. Consequently sellers must hold a clear apprehension of ordinances in each market they serve. There are besides extra legal concerns when it comes to monetary value.

STP for the merchandise

After holding the merchandise development and choosing the monetary values I will travel for establishing the merchandise. In the launch run I will be demoing or presenting the assorted characteristics of the merchandise. The chief thought behind this is to do people familiar about the merchandise and here I will be ask foring all the major distributers of different metropoliss who are maintaining the Photostat machines of different companies besides so that they come to cognize about my new trade name and can hold stock with them. I can do topographic point for my merchandise in bing market by deep market survey, maintaining the monetary value less than other existing monetary value of the photostat machines. Positioning is to show the procedure. Any company, single, merchandise and service could utilize this method to “ busy ” a place in the heads of consumers The placement can be done by utilizing assorted mediums like giving advertizements on telecasting, newspapers etc. Placement of the photostat machine is being done really efficaciously in the heads of clients. It is depth survey of the mark audience from the position of the audience themselves in order to take information to administer efficaciously and vouch a manner to supply consistent communicating. This will make a method which consequences in consumers memorising the company or the merchandise in a certain manner. The rule of positioning created a new epoch. With this construct widely known and accepted by the people, selling experts besides tried to link this rule with the bing selling theory systems

Promotion and Ad:

Promotion is a signifier of corporate communicating that uses assorted methods to make a targeted audience with a certain message in order to accomplish specific organisational aims. About all organisations, must prosecute in some signifier of publicity. Such attempts may run from transnational houses passing big amounts on procuring high-profile famous persons to function as corporate interpreters to the proprietor of a one-man endeavor go throughing out concern cards at a local bourgeois ‘s meeting.

For publicity, apart from go oning the bing scheme of concentrating on T.V. channels. I would besides concentrate on advancing through wireless. Our publicity scheme is based chiefly on doing the right information available to the right mark client. In this we have to look into that what manner of advertizement we have to utilize to the advertizement of the Lenovo ‘s Photostat machine.

Decision:

To establish any new merchandise like Photostat machine in the market it is really customary to establish the merchandise as per a specific selling program of that merchandise. To cognize the current place of the companies that is bring forthing the same merchandises and what consumers demand from them. To maximise their net income and capturing more market portion proper analysis of each and every phase involved in selling program is really of import. If the company non doing marketing program before establishing any new merchandise so there are maximal opportunities of acquiring loss. A selling program may be portion of an overall concern program. Solid selling statergy is the foundation of a well-written selling program. While a selling program contains a list of actions, a selling program without a sound strategic foundation is of small usage. Behind the corporate aims, which in themselves offer the chief context for the selling program, will put the ‘corporate mission ‘ ; which in bend provides the context for these corporate aims. At the last I can reason that selling program is indispensable to do before establishing any new merchandise in the market.

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Global Strategy for Lenovo

Table of contents Abstract Now days, more and more companies are going global. In China Lenovo is a representative in that area. During I do the research about Global strategy I am very interested in the Lenovo group. It might be the earliest one gets the mind about globalization. At the beginning to run company […]

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The influence of Apple

The relation between politics and multinational corporations is intertwined; both of them are affecting each other. Sometimes legal rules and regulations are so strict that they are affecting the import of Apple’s products, and on the other side, Apple is also powerful enough to change relations between states. I will examine these theses in details.

 

The impact of Apple’s policies on politics and governmental functioning

 

We can illustrate the impact of Apple’s policies on politics and governmental functioning if we take into account the case of security. Namely, consumers of Apple’s product are worried whether their information are truly protected, arguing that this multinational corporation should protect any misuse, or unallowed control over their personal data.

However, one of the duties of every government is to protect its citizens, and by encrypting the messages of its consumers, Apple is doing one bad thing- it is limiting the power of adequate agencies to detect, follow, and capture criminals. Without the possibility to track the messages, videos or pictures saved on Apple devices, governmental agencies are having less chance to use these date as evidence in trials.

While governments are trying to influence multinational companies to live “back door” for their justice departments, Apple is completely ignoring these worries, inventing the systems that are almost impossible to decrypt:“Unlike our competitors, Apple cannot bypass your passcode and therefore cannot access this data. So it’s not technically feasible for us to respond to government warrants for the extraction of this data from devices in their possession running iOS 8.

”Bryan Chaffin reacted to the Bloomberg report in which it was written that Apple “spent some US$2.9 million in lobbying efforts in the first three quarters of 2014, which marks a big increase, even if it’s pocket change for a company as wealthy as Apple.”

These numbers should not be surprising, if we take into account that if the current state of affairs continues, US government would have decreased incentives to support one of its biggest companies, and that is, clearly, not in the interest of Apple.

Events that marked 2016 tell us that the political aspect of Apple as a multinational corporation is huge. For example, relations between the two world’s powers- US and EU are pretty much tense, since Apple is arguing that EU regulations are treating domestic companies more fairly than Apple.

Many studies show that Amazon and Apple pay the most taxes of all companies in the world, so political changes could highly affect their income. Since EU’ main targets are big companies such as Google, Amazon, Apple, they could easily raise their taxes, which could result in lower income for these companies. Nevertheless, there are other political determinants that could affect Apple.

A considerable piece of Apple’s production has been reallocated to China, However, there are factories all over the world, and probably one of the most serious problems Apple is facing, is supplying their factories with goods. China plays a crucial part in Apple’s supply network. Apple, like many other companies, chose China, since it offers cheaper labor and raw materials.

Now, with Donald Trump’s promises, to raise taxes for China, things might change. That could make big companies, such as Apple, move back to the US.  If Trump fulfills his promises, it is expected that China will raise labor and raw material costs, which will affect Apple’s income.Apple investigates India as mobile phone market, as India stands as world’s third biggest smartphone market.

However, Indian bureaucracy is a huge obstacle to the collaboration, and it is argued that it is better to use Indian potential in terms of skilled and cheap labor, and goods. In other words, instead of targeting the Indian market, Apple should base its production units there.

What we can see from abovementioned is that political factors cannot oversee those economical ones when it comes to the analysis of rise and power of multinational companies. That is why I will examine the economic aspect in the next paragraph.

Abhijeet Pratap is arguing that importance of economic factors in international arena significantly influence the rise of multinational corporations since the global business network includes “several economies whose performance jointly affects the brands’ revenue and profits.”

Partap’s ideas can be proved with the Apple. The growth of Chinese and Indian market made China and India potentially big markets for Western companies. As economic performance rise, it globally results in higher purchasing power of the community which results in more sales, which leads to more profit. Speaking of Apple, prices tend to be higher than average, which leads to the conclusion that their products are not meant for lower end market. That is probably the main reason why India, is not the ”iPhone” market.

Generally, people still care about the prices, which surely affects Apple, and it will in the future, especially if China increase the costs of labor and raw material, as I mentioned in the part about political aspect.The competition produced some new problem for Apple. Brands like Lenovo competed with them on the computer market, and in last few years, definitely made Apple lose a reasonable part of market. According to Sun Leo’s research from 2014, “In addition to being the largest PC maker in the world, Lenovo is now also the second-largest PC/tablet maker and the third- largest smartphone supplier.

PCs are still clearly its core competency, but it will eventually rely on three key pillars of growth: PCs, mobile devices, and enterprise solutions, thanks to its acquisition of IBM’s low-end server business.Technological changes are an inevitable effect to technological giants such as Apple. Speaking of which, past years were an all known technological boom, which resulted in the dramatic market changes. Dramatic changes could result in Apple losing its place on the global Fortune list of most valuable brands. Google is behind Apple’s back, seeking to take their position.As the market has grown, the number of competitors also grew.

Other cheaper companies such as Lenovo and Hewlett Packard, produced big problems to Apple’s profit, by keeping their place on the market and making Apple lose their. Even though they lost a significant part of the computer market, growth in the mobile industry, forced Apple to win a big part in the mobile market. A new, fast growing, competitor in the smartphone market nowadays is Google, with their Nexus and Pixel mobile phones.For the less developed market, such as Asian, the smartphone market is mainly covered by Google and Samsung, since a significant price difference is noticeable.

A fast-growing number of competitors also resulted in the production of same level products, at lower prices. These competitors could also produce problems to Apple in the developed world market, since the price difference is noticeable even by the wealthier market.What is sure, is that Apple is significantly contributing to the US economy, which explains in the great extent its political importance. Don Reisigner wrote for web portal Fortune, that Apple “has created 80,000 U.S. jobs directly. In addition, the company says it has created 450,000 jobs at third-party suppliers and another 1.53 million jobs in the, so-called, App Store ecosystem.”

Type of jobs financed by Apple varies, from manufacturing to financial services. Although some critics are arguing that Apple is not contributing enough to the USA economy since it doesn’t pay enough taxes, we must take into account that if there was no Apple, around 2 million people would be without a job, and that would severely damage the American economy.

Another aspect of Apple’s influence is that this multinational corporation is providing a platform for many creative start-ups, which could project their applications to consumers all around the world. Recently, it was published on Apple’s webpage that “the US developers have earned more than $16 billion from the App Store since 2008.”

We can argue that Apple is, together with other technologically oriented multinational companies, refreshing and modernizing the whole technological aspect of the economy, not just by bringing food to the table of people who are working for them, but also creating new jobs by offering people to create something useful, and sell it. Just remember the famous game “Floppy bird”, which was at the beginning available just for iOS, that literally earned millions, and became “addiction” of many people all around the world.

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Lenovo China’s Competitiveness

About CSIS—50th Anniversary Year For 50 years, the Center for Strategic and International Studies (CSIS) has developed solutions to the world’s greatest policy challenges. As we celebrate this milestone, CSIS scholars are developing strategic insights and bipartisan policy solutions to help decisionmakers chart a course toward a better world. CSIS is a nonprofit organization headquartered […]

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Lenovo Leaps into Fortune 500 Club

Lenovo has become China’s first non-monopoly private company to be ranked among Fortune Magazine’s top 500 enterprises. Fortune announced Lenovo’s total income to be $16. 788 billion, ranking 499 among the world’s top 500 enterprises. Lenovo declared that entering the world’s top 500 marked a crucial moment for the company’s rapid growth in the global […]

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