Apple Incorporated
Technology companies play a vital role in promoting the world’s economy. Some of the most renowned companies in the technology field include Microsoft, Sony, and Apple. The well-known companies do not serve in their mother countries but have gone ahead opening branches in different regions across the world. The essay in consideration aims at evaluating the efforts that Apple Inc plays in the global economy. The effects of Apple on the global economy are supported by the fact that the organization operates in its mother country and has taken its operations across the world. In 2018, Apple operated 506 retail stores in 25 different countries, including the United States of America. The first two Apple brick and mortar stores were opened in Mclean and Glendale simultaneously. The opening of the first retail store saw the organization opening other stores in other regions such as Australia, Belgium, Canada, China, Germany, and other areas. A report composed in the Wall Street Journal indicated that 33% of sales at Apple come from stores situated in malls outside the United States.
Companies operating in foreign countries are required to pay a specific tax to the government of the country they are working as well as their mother countries. In turn, the taxation is used to support the well-being of the society members hailing in the region where the company is operating. For instance, Brazil’s government can receive grants from Apple to improve the infrastructure of their territory. The overall effect of explained ideology is a situation where the economic activity of the inhabitants will improve. It should also be noted that Apple’s operations across jurisdictions outside the United States play a vibrant role in increasing job opportunities. Apple has created more than 80 000 jobs in the United States, and more than 450 thousand jobs at third party suppliers (Blanchard, 2010). The noted figure implies that the organization has helped citizens form the region it operates to secure job opportunities and make their lives better.
Impacts of Apple on the global economy are not only evident in the fact that the organization has created job opportunities for the world’s population. Apple’s products, including tablets, laptops, and applications, have made it easy for business people to transact their business activities using online platforms that are cheaper and more convenient than traditional methods of carrying out business transactions. The introduction of the iPhone played a vital role in ensuring that the internet is put in everyone’s pocket. Today, other companies are following Apple’s example and have ensured the internet’s availability to anyone using a smartphone. The essence of Apple creating job opportunities is enhanced by the fact that it has the best supply chain across the world. The organization has a complex global supply chain whereby it buys components and raw materials from various suppliers. The raw materials are then shipped to the assembling plant in China. Finished products are kept at Elk Groove, California, from where retails collect them. It can thus be argued that Apple operates in the global supply chain since it distributes its products are sold in various jurisdictions across the world.
The demand for Apple’s products has increased significantly to the point that the organization is left with no choice but to adopt an effective measure to meet their customer’s demand. Intending to ensure that their customers receive goods timely, Apple has automated its warehouses to give the production of first moving priority. Global supply chain management at Apple is among the leading across the world following that the organization was ranked position 25 in Gartner’s Top 25 supply chain in 2015. Globalization has enabled Apple to expand its operations in many jurisdictions across the world and has also presented a significant challenge in business activities carried out by the organization. Before defining how globalization has affected Apple’s operations, it is vital mentioning that Apple Inc’s presence in other countries is purely business-oriented. Apple’s presence in Europe and the USA has reached saturation. This does not, however, mean that the company’s profitability is decreasing. China is an alternative market for Apple products.
The growth of technology evidence in the current century bears positive and negative impacts on global companies. The most notable positive effect globalization has shown on Apple is lessening is marketing expenses. Using social media platforms, Apple can reach a wider market share and wider segmentation (Breznitz & Zysman, 2013). Unlike traditional marketing strategies, online marketing saves cash that could have otherwise be consumed by traditional marketing strategies. Even though Apple is enjoying the noted above advantages as a result of globalization, the organization is experiencing a notable level of competition from its rival companies such as Samsung. Price instability is also an additional setback brought about by globalization.
References
Breznitz, D., & Zysman, J. (2013). The third globalization: Can wealthy nations stay rich in the twenty-first century?. Oxford: Oxford University Press.
Blanchard, D. (2010). Supply Chain Management: Best Practices.
https://www.gartner.com/en/newsroom/press-releases/2015-05-14-gartner-announces-rankings-of-its-2015-supply-chain-top-25