In 2007, it sold between 500,000 and 1 million phones within two days of its launch. (Srinivas, 2008)
In terms of the model that has been used for the Apple phone for the development of a relevant marketing plan and strategy, we will study the International Market Entry Mode Strategy that this company has used. This strategy is ideal for those companies that wish to diversify geographically. (Walter et al, 1988) This strategy along with others that have to do with market segmentation and brand positioning for maximum customer satisfaction will be used in order to evolve a strategy that is best suited for the purpose of an entry level product in a market as diverse as that of the global market. (Srinivas, 2008)
The first element when entering a new market is the risk factor. For the Apple phone there has been a strategic management of risk through a change of location as well as the launch of personalised and online services. There, is a need to now focus on changing passive international sales into hardcore business. It is important to capitalise on the opportunities by undertaking risks so as to achieve organisational growth. Therefore, once the entry level mode is applied to this situation, there will be a concerted effort towards arriving at decisions that have to do with control, risk and commitment as demonstrated in the diagram below:
To deal with the risk factor at an entry level, this diagram shows that the commitment level was set high so as to start by catering to consumer satisfaction. With effective segmentation, it will be easy to find out the areas of investment so as to find an appropriate positioning on the scale where exports start. (Walter et al, 1988) Therefore, a good entry level strategy involved introducing the fact that the Apple phone has an international face as its products go and can be modified to cater to any kind of culture or country. In this regard, there will be long term growth through the management of the immediate and other short term risks. In this case, the main risk comes from losing its exclusivity which can be tackled through the direct investment strategy.
Even though, its priority list speaks of countries like America and Australia as strategic places for expansion, internationalisation in today's world would mean a westward as well as an eastward growth owing to the fact that the East is booming and almost at par with the West as far as politics and economies are concerned. As an entry point mode, a company dealing with high end products needs to make a more individualistic statement. This calls for a mix of passive as well as consumer centric activities at the location as well as around it. For this, it was important to touch the pulse of the target consumers by being accessible to them distance wise. Therefore, it will be found that for an entry level product in an international market, exploring the retail market was the best option available to the Apple phone. The direct investment strategy is the best one for the entry mode strategy. (Srinivas, 2008)
In this regard, the entry level mode can be applied to find the areas where there is competitive advantage so as to find