The Entrance of Apple Incorporated to the Nigerian Market - Case Study Example

In what way and with what kind of strategic choices does the Apple Inc. used to enter into the Nigerian market? [Instructor’s Name] [Date] In what way and with what kind of strategic choices does the Apple Inc. used to enter into the Nigerian market? Introduction In the contemporary world rapid changes are taking place within a blink of eye. For instance, changes in our lifestyles, changes in the way we execute different tasks and most importantly the changes occurring in technology, especially related to the use of computers are remarkable. This has ultimately brought new companies into the computer market all around the world in order to fulfill the ever increasing demand of more sophisticated computer systems (ERGONOMICS, 2013). Apple Inc. managed this challenge efficiently and effectively through different strategic activities and decisions made by experts working for the company. Moreover, its establishment into the international computer market brought further success to the company. Apple is significantly known for its iPod, iPad, iPhone, iTunes etc. The company has also manufactured revolutionary OSX operating systems and Mac Laptops (ERGONOMICS, 2013). In the late December 2012, Apple Inc. made a significant entrance into the Nigerian Computer Market as per its international expansion strategy. There are certain variables which drives the company’s successful expansion strategies simultaneously increasing its market share while successfully competing with competitors. Apple Inc. provides remarkable services to its users in Nigeria apart from the wide range of products. These services include support programs on how to use Apple products, manuals provided by the company so as to troubleshoot the problems associated with any of the sold items, technical guidance and system specifications, downloading options of latest software and updates for existing programs and most significantly it provides community facility to its users which enables them to share and discus their ideas and issues with other Apple users (SUPPORT, 2013). This paper aims to critically discuss and evaluate the strategic approach used by Apple Inc. so as to enter into the Nigerian Market. Additionally, it will highlight the reasons for the company’s international expansion and its historical performance throughout the world. Apple Inc. has one of the finest and most advanced range of computers which enables the company to successfully run its strategic activities all over the globe, and therefore these products along with the services shall be discussed. Moreover, the company’s market share and competitive position within the industry shall be analyzed. Background Whenever a multinational corporation enters into a comparatively new market it has certain reasons and underlying causes for its international expansion. These reasons are significant enough to identify and analyze the company’s strategic actions and decisions. Apple Inc. was first introduced in the African Region through the opening of its 13 stores in different parts of South Africa. Later in 2012 the company was launched in Nigeria so as to facilitate the customers and let them experience the real Apple products and services along with experts’ advice and demonstrations (SOTUNDE, 2012). Following are the most prominent reasons for Apple Inc. International Expansion (JR, 2012) Before 2007 Apple had a very limited consumer market throughout the world, especially in Nigeria. At that time only print and publishing employees, software designers and experts of computers were interested to use the company’s products. However, with the launch of iPhone, the dynamics of Apple’s products, services, market share and strategic approach were entirely changed. Now people were fascinated by the products of Apple Inc. and hence the company had to enter the phase of international expansion. It first entered into the African region in 1994 whereas in Nigeria, the company was mainly represented by French distributers until 2012. But after the launch of iPhone, Apple considered entering into new markets so as to accomplish the ever new customer demands. Company’s approach and strategic actions related to International Expansion were also greatly influenced by the economic and political changes taking place throughout the world. For instance, Nigeria has experienced tremendous changes in its infrastructure ever since 1999. The country has achieved economic growth and now people are more inclined to use advanced technology. The consumer market in Nigeria underwent a phenomenal growth which is quite evident from the fact that Apple’s products attained the status of consumer electronics as compared to the previous status of an experts’ electronic brand. Moreover, the international expansion was required to satisfy Apple users all over the globe i.e. to give extended warranties, training and demonstrations over the use of different products. Before the execution of international expansion strategy Apple users were facing difficulties in operating the products while the company was experiencing huge unofficial sale through local country dealers which was very damaging for both the company and the consumers. Hence it provoked the company executives to enter into the global market. An evaluation of the company’s historical performance The historical performance evaluation of Apple Inc. unfolds remarkable achievements of the company. It has always managed to perform up to the demands of its consumers and hence it is leading the current computer and cell phones market throughout the world. Apple experts define performance as the competent use of resource equated with the perception of speed. Many people believe that performance largely deals with acquiring speed. However, at Apple Inc. they have an entirely different concept which has actually derived its successful historical performance. In broader terms competent use of resources means the efficient and effective utilization of all the available human capital and finances while on the other hand perception of speed has a connection with responsiveness i.e. no matter if apparently the company’s progress is slow but it should be able to respond to the market challenges and the upcoming competition. In addition to this another factor which has positively affected the company’s historical recital is tracking the performance i.e. the executives were required to create standards for performance which were measured and analyzed on variable intervals (PERFORMANCE OVERVIEW, 2010). Products/Services range First iStore in Nigeria was opened in the end of December 2012 in Lagos. With its launch, Apple disclosed its plans to train and education its customers about the use of Apple products. This strategic action later became the most prominent and highly acknowledged part of the company’s international expansion strategy. These were actually the value-added services extended to the newly captured cell phones and computer market. Moreover, the senior executives believed that launching iStore in Lagos will facilitate the accessibility of Apple products throughout the country (SOTUNDE, 2012). The services offered at iStore included interactivity with the company’s representatives in order to get a closer vision of Apple’s products, customer support and service programs for the consumer guidance and ease, retail design etc. All of these services gave an unparalleled shopping experience to the customers hence making them delightful and satisfied. In addition to this, the newly opened Apple store in Nigeria offered distinctive technical support along with the demonstrations from Apple experts with product setups (OLUWABUSAYO SOTUNDE, 2012). All products of Apple Inc. are showcased at Nigerian iStore which include Mac book, iPad, iPod, iPhone etc. The customers were also given complimentary accessories such as cover or sleeve on the purchase of Mac book and iPad in order to encourage future purchases (SOTUNDE, 2012). Market share Soon after the launch of iPhone, Apple gained significant market share internationally (HARRISON, 2013). However, since the last few years the company is facing immense competition by Android. Consequently, from 2011 onwards the market share of Apple has been decreasing and research indicates that Apple’s market share has reached to its lowest level in 2013. This has ultimately made Apple Inc., a niche player all over the world. Currently it has 13.1 % of the international market share which has dropped from 16% in 2012 (NEWS 24 NIGERIA, 2013). However, the international expansion strategy due to which it entered into the Nigerian market has actually helped Apple to increase its market share in the African Region (JR, JULY 2012). The company has a very distinctive strategy i.e. it does not want to acquire the whole market rather it targets only a specific demographic group comprising of people who are actually ready to pay for their products. Hence Apple enjoys huge cell phone profits even with a minimum market share (GASSEE, 2013). Competitive position within the industry Apple has a very competitive position within the industry which has greatly influenced its market share over the years. It has positively managed to deal with the competition coming its way through simply combining its software and hardware expertise. Basically professionals at Apple Inc. make remarkable software and thereafter they make the desired hardware matching the typical nature of their software. Hence it has proved to be the biggest competitive advantage for the company. Moreover, Apple Inc. believes in continuous advancement of its products while changing the strategic actions as per the change in market demands. Further it can be said that Apple Inc. has attained leadership in cell phones and computer market due to its highly innovative approach along with the customer-centric software and applications. The company’s close relationship with customers and their trust in the brand quality has given it a distinctive position in the industry (BENJAMIN BACH, 2007). References Apple’s smart phones market share slips 2013, News 24, Nigeria, viewed 17th August, 2013, Bach, B 2007, Implications of Enabling Technologies for Apple Inc., GRIN Verlag, Germany. Ben Uzor, JR 2012, Apple aims to increase Nigerian market share with official launch, 31st July, Business Day, Nigeria, viewed 17th August, 2013 Ben Uzor, JR 2012, Apple wants to provide Nigerians with the best value – representative, 18th December, Business Day, Nigeria, viewed 17th August, 2013, Ergonomics 2013, Apple Inc., USA, viewed 17th August, 2013, Gassee, JL 2013, Android V Apple, market share V profit share, 10th June, The Guardian, UK, viewed 17th August, 2013, Harrison, R 2013, Strategic Thinking in 3D: A Guide for National Security, Foreign Policy, and Business Professionals, Potomac Books, Inc., USA. Performance Overview 2010, Apple Inc., USA, viewed 17th August, 2013, Sotunde, O 2012, iStore opens in Nigeria, Offers Training on Apple Products, 4th December, Ventures, Africa, viewed 17th August, 2013, Support 2013, Apple Inc., Nigeria, viewed 17th August, 2013, Read More