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Assignment Steps Resources: Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are also additional tutorials via the web offering support for Office products. Revise your Week 3 assignment, Research Analysis for Business, using the feedback provided by your facilitator. This Week 6 report should only include one conclusion, so you will need to rewrite the conclusion you included in your Week 3 assignment, Research Analysis for Business. (attached)Select a foreign market in which to expand your chosen product. If you wish, you may use one of the countries your team analyzed in their Week 5 Comparative and Absolute Advantage Assignment. Prepare a minimum1,750-word report addressing the points listed below. The use of tables and/or charts to display economic data over the time period discussed is highly encouraged, you may submit any economic data in Microsoft® Excel® format in a separate file. You may use the U.S. Department of Labor’s Bureau of Labor Statistics (BLS), U.S. Dept. of Commerce’s Bureau of Economic Analysis (BEA), the Federal Reserve of St. Louis’s FRED data, the CIA World Fact Book, World Bank data, and World Trade Organization, or other appropriate sources you might find on the Internet or in the University Library. The new sections of your report should:Evaluate current global economic conditions and their effects on macroeconomic indicators in your selected country. Provide forecasts for population growth, gross domestic product (GDP) growth, GDP per capita growth, export growth, and sales growth.Evaluate any competitors’ existing production in the chosen country.Assess sales forecasts in the selected country by using the Federal Reserve of St. Louis’s FRED data, the CIA World Fact Book, World Bank data, World Trade Organization, or other appropriate sources you might find on the Internet or in the University Library.Categorize the type of economy that exists in your selected country as closed, mixed, or market. What is the difference between these types of economies and how might this affect your expansion?Assess how your chosen country’s current credit market conditions, especially interest rates and the availability of financing, affect demand for your product or service and your planning or operating decision for your production in that country.Analyze the role of the selected country’s central bank on that country’s economy.Compare the availability, education, and job skills of the work force in the selected country. Discuss any additional challenges of international production, such as political stability, availability of government financing or other incentives, threat of capital controls, and exchange rate risks.Explain any additional supply chain challenges you anticipate if attempting to make your product in your chosen country and selling the product in other countries.Based on the data gathered and analysis performed for this report write a conclusion in which you:Create business strategies, including price and non-price strategies, based on your market structure to ensure the market share and potential market expansions and explore global opportunities for your business in a dynamic business environment and provide recommendations.Develop a recommendation for how the firm can manage its future production by synthesizing the macroeconomic and microeconomic data presented.Propose how the firm’s position within the market and among its competitors will allow it to take your recommended action.Recommend strategies for the firm to sustain its success going forward by evaluating the findings from demand trends, price elasticity, current stage of the business cycle, and government.Recommend any comparative advantages your company will have over competitors currently operating in that country, and defend your position, either for or against, expanding your company’s production into your chosen country based on your research. Integrate with the Week 3 Individual Assignment, and incorporate corrections and suggestions from the instructor’s feedback. The final report should be a minimum of 2,800 words. Cite a minimum of three peer reviewed sources not including the textbook. Include all peer-reviewed references and government economic data sources/references from Week 3. Format your assignment consistent with APA guidelines.
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you start off with a good descriptive of the company and have solid sales revenue data charts and
analysis of the data. You do need to be more specific on actual fixed and variable costs. You state
the product as perfectly inelastic. This is not correct./ If it were perfectly inelastic it would have no
competitors and if you do the research droid actually has a higher percentage of customers than
Apple. You present no documented evidence to support your elasticity opinion. Your
conclusions/recommendations need further development and to relate to economic indicators and
what they can be forecasted to do affecting the company. This is not included. One peer reviewed
journal is indicated in your references. Three peer reviewed sources are required. A larger
consideration is the lack of citations throughout your paper. You must document all facts, definitional
materials, and most importantly data. Failure to credit your original source is considered a major
academic error and omission. References should be formatted in APA. This includes proper tile
capitalization in sentence case. Dr. Laurie
Running head: RESEARCH ANALYSIS FOR BUSINESS
Stephen Coombe
Research Analysis for Business
ECO/531 Economics
April 14, 2019
Research Analysis for Business
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RESEARCH ANALYSIS FOR BUSINESS
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Introduction
Apple Inc. is a SU-based multinational corporation whose headquarters are located in
Cupertino, California, USA. The company was established in 1976 and has continuously
specialized in designing, development, and sale of a wide range of products and services ranging
from personal computers to electronic devices and software. The multinational corporation is
ranked among the leading technology establishments in the globe. Drawing from the facts of
Apple Inc. and its operations, this paper aims at conducting an objective analysis of the business
and the industry in which it operates in a bid to offer possible recommendations on the various
actions that the company can take to achieve and maintain its success. The paper will also
explain how the business sustainability is affected by the core economic principles. Apple Inc.
operates in an oligopolistic competition where it occupies a significant part of the global market
and can exploit various economic policies to pursue different courses of action in a bid to
achieve sustainable success in its operations.
Market Structure, Market Share, Competitors, and Barriers to Entry
Apple Inc. operates as an oligopoly in the sector of operating systems for the different
smartphones it manufactures and sells. By evaluating the company’s mode of operating in the
development and sale of iOS, it is evident that it has dominated the sector (Dhalla & Oliver,
2013). Evidence for the duopolistic nature of Apple Inc. in the market for smartphone operating
systems is evidenced by the fact that the sector is dominated by Android, iOS, and windows
across the world (Natanson, 2016).
The company’s market share, on the other hand, has continuously evolved over the years;
however, differently for specific products and services. For instance, the company occupies
22.35% of the global smartphone market behind its immediate competitor, Samsung at 31.49%
RESEARCH ANALYSIS FOR BUSINESS
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(StatCounter, 2019). Also, by the end of 2018, the company had occupied approximately 40% of
the US mobile phone operating systems market (Elmer-DeWitt, 2018).
(StatCounter, 2019)
The business also commands a significant proportion of the global mobile phone market;
especially with its iPhone. It is imperative to highlight that its iPhone sales for 2018 accounted
for 15.8% of the worldwide market (Reisinger, 2019).
The company operates in a competitive sector as exemplified by the existence of other
technology businesses. Apple’s greatest competitor is Samsung; which runs on a global scope
and poses a major threat to Apple’s market dominance. Other competitors include Huawei,
Xiaomi, Oppo, Google, Microsoft, HTC, Motorola, and HTC among others (Reisinger, 2019).
The stiff competition among the different players in the technology industry has played a critical
role in shaping the industry through continuous innovation as each player strives to establish and
maintain sustainable competitiveness.
RESEARCH ANALYSIS FOR BUSINESS
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Due to the nature of the industry, the technology industry is characterized by significant barriers.
Technology is among the primary obstacles to entry in the industry because new entrants must
meet the current technology levels to act competitively in the industry. The need for continuous
technological developments poses a major challenge to small firms since they cannot sustain the
huge financial requirements for research and developments to sustain innovative cultures. The
sector is also highly regulated, thus making it difficult to meet the legal requirements which vary
from one market to another. Another barrier to entry in the industry is the existence of property
laws such as copyrights and patents. New entrants find it hard to afford the existing knowledge
or develop their intellectual properties.
Trends in Current Macroeconomic Indicators
Current Stage of The Business Cycle: The current performance status of Apple Inc as
well as its historical trends have suggested that the business has reached its maturity stage
(Shukla, 2013). The company’s arrival at the maturity stage can be attributed to the trend
exhibited by its stocks; especially from 2013 when the prices fell to $392 (Shukla, 2013).
However, the subsequent share buyback of the company reinstated the stock prices to
recommendable levels. It has also been evidenced by the consecutive dividend hikes and its
diversification to cooperate with other international partners such as China Mobile Ltd.
Real gross domestic product (GDP): Apple’s market capitalization has exceeded $1
trillion; implying that it is worth more than 1% of the world’s GDP. In the USA, the company’s
value exceeds 5% of the nation’s real GDP (Shukla, 2013).
Trends in Demand and Business Strategies
RESEARCH ANALYSIS FOR BUSINESS
According to Apple Inc. (2019), the demand for the company’s products has increased
significantly over the last three years (2016 – 2018). Imperatively, the sales increased from
$215,639 million in 2016 to $229,234 million in 2017, and $265,595 million in 2018.
(Apple Inc., 2019)
The sales can also be classified per product and region as follows:
(Apple Inc., 2019)
From the data presented above, it is evident that the company’s products are highly
demanded in the American market compared to other markets. Moreover, the iPhone is the
leading product of the company in terms of sales volume and revenues (Apple Inc., 2019). The
increased demand for Apple’s products has triggered increased competition from other
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RESEARCH ANALYSIS FOR BUSINESS
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competitors as they strive to innovate competitive products to counter the threat posed by Apple.
The company’s demand, as evidenced by increasing sales over the last three quarters, can be
demonstrated as follows:
(Apple Inc., 2019)
Current Data Information and the Effects of Price Elasticity
It is imperative to highlight that due to the competitive nature of Apple’s business and
industry, the company is faced with continuously increasing competition. Other direct
competitors such as Samsung and Microsoft are continually striving to develop innovations to
compete successfully against Apple. There exists a wide variety of substitutes in the technology
industry; however, Apple does not have any direct substitutes, especially in the iOS section. The
iPhone, for instance, can be argued to have other substitute mobile phones, but they are not
perfect substitutes of the product.
Due to the high level of differentiation and the business strategy pursued by Apple Inc., it
is evident that the business operates on perfectly inelastic demand for its products. The
company’s products are priced significantly higher than other competing brands. The strategy is
based on the fact that the products, such as the iPhone, are considered premium and unique. As
such, the company prices its products high. The perfectly inelastic nature of the business’
demand structure enables it to maintain high prices without hurting its revenues or demand.
Examined available, current data and information, such as pricing and the availability of
substitutes, and explained how a student could determine the price elasticity of demand for the
RESEARCH ANALYSIS FOR BUSINESS
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firm’s products. Assessed how the price elasticity of demand impacts the firm’s pricing decisions
and revenue growth.
Analysis of Output Decisions
According to Apple Inc. (2019), the company’s output decisions are based on the
management’s objectives and research and development activities. The output decisions made,
therefore, form the basis for the company’s variable and cost structures. As such, other different
types of expenses such as labor, raw materials, and research vary directly with the level output.
For instance, the utilization of many components implies that the company’s production is high;
assuming the maximum efficiency. For example, the company’s expenditure on research and
development from 2016 to 2018 changed with the revenue. Research and development expenses
increased from $10,045 million in 2016 to $11,581 million in 2017 and $14,236 million in 2018,
and the sales exhibited a similar trend. Also, the same positive correlation between the variable
expenses and the volume of output was also presented by the selling, general, and administrative
expenses.
Conclusions and Recommendations
To achieve and maintain its success, the business can implement certain strategic
measures to leverage the available opportunities as well as business strengths. Due to the
oligopolistic nature of the business, it should capitalize on such opportunities as price leadership
to increase its revenues. The business can also venture into low-end markets by developing
averagely priced products that are affordable to the low-income earners. Moreover, Apple Inc.
should pacify its marketing strategies to counter the threats posed by its competitors such as
Samsung.
RESEARCH ANALYSIS FOR BUSINESS
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In a bid to manage its future production, the company should invest substantially in
research and development initiatives to develop new technologies that will positively contribute
to the production of superior products and services.
The leadership position of the business in the technology market will facilitate its ability to adopt
the above proposal because it has substantial financial resources to support expansion and
research and development initiatives.
Given that the company operates in a market with perfect demand inelasticity and its
existence in the maturity level of the business cycle, it can sustain its success by exploring
potential international partners to leverage its expansion and pursuit of competitiveness. It can
leverage price leadership to exploit the high-end markets by charging reasonably high prices for
its products. Also, the business should continuously maintain its relentless efforts in research and
development in a bid to develop and produce high-tech products and services that will facilitate
the retention of its current market leadership. It should also seek to understand and comply with
the current government and regulatory policies in different countries.
RESEARCH ANALYSIS FOR BUSINESS
References
Apple Inc. (2019). Apple – Investor Relations – SEC Filings. Retrieved from
https://investor.apple.com/investor-relations/sec-filings/default.aspx
Dhalla, R., & Oliver, C. (2013). Industry Identity in an Oligopolistic Market and Firms’
Responses to Institutional Pressures. Organization Studies, 34(12), 1803-1834. doi:
10.1177/0170840613483809
Elmer-DeWitt, P. (2018). Apple and Google’s Android Take 97% of U.S. Mobile Market.
Retrieved from http://fortune.com/2016/04/21/apple-google-cirp/
Natanson, E. (2016). Breaking The Android-iOS Duopoly: Will Android And iOS Ever Get A
Serious Third Competitor?. Retrieved from
https://www.forbes.com/sites/eladnatanson/2016/06/06/breaking-the-android-ios-duopolywill-android-and-ios-ever-get-a-serious-third-competitor/#704c532d491c
Reisinger, D. (2019). Apple iPhone Sales Tanked at the End of 2018. Retrieved from
http://fortune.com/2019/02/21/apple-iphone-sales-2018/
Shukla, V. (2013). Apple Inc. Enters Maturity Phase: Some Visible Signs. Retrieved from

Apple Inc. Enters Maturity Phase: Some Visible Signs

StatCounter. (2019). Mobile Vendor Market Share Worldwide. Retrieved from
http://gs.statcounter.com/vendor-market-share/mobile
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