MICROECONOMICS LTA 5  

 

Management has recognized the effect of changes in the real-world competitive environment and government policies on other industries and anticipates similar events occurring in their industry. This report puts into context Apple Watch as a new product for the mobile technology giant Apple Inc. in the description of global/international corporations as well as their ability to still remain competitive on the local level. In the present day competitive environment, multinational corporations are required not only to compete in their new-market entrance abilities and achieving local economies of scale but also the ability to conduct effective administrative flow of knowledge in a n economy based on information (Ordóñez, 2006). In order to increase their level of competitiveness, there are challenges faced in the pursue of global efficiency, for instance within Apple Inc., and as such there are strategies that are put into place in order to increase local responsiveness alongside information transfer and effective knowledge within subsidiaries. In the case of Apple Inc. in the launching of the new product Apple Watch, such local level responsiveness can be employed through strategies that underlie competitive advantages.

In the adoption of the international strategies for marketing Apple Watch, Apple Inc. needs to adopt efficiency and flexibility to ensure local responsiveness. This is through a multi-domestic approach that involves knowledge transfer and competencies within the local subsidiaries. Tight control and high centralization on the various activities involved in the marketing of Apple Watch will result to product adaptation in the satisfaction of local needs. Increasing the level of competitiveness locally is sufficient in overcoming the various challenges existing in the local market for global corporations today (Yongsun and Sohn, 2004).

 

 

 

Reference

Ordóñez de Pablos, P. (2006). Transnational corporations and strategic challenges: An analysis of knowledge flows and competitive advantage. The Learning Organization, 13 (6), 544 – 559

Yongsun, P. and Sohn, J. (2004). Striking a balance between global integration and local responsiveness: The case of Toshiba Corporation in redefining regional headquarters’ role. Organizational Analysis, 12(4), 347-359.