Apple Inc. recently made a secret 5-year $275B deal with the Chinese government. When it comes to accumulating profit as a technology giant company, they assemble an agreement with a government, secretive and extractive like china as well. On the other hand, Apple is also doing business with more inclusive governments and countries, such as Europe union countries.
Market entry can be challenging for every company because they face many different regulations, political systems, and cultures in the various markets all over the globe. This article will analyze Apple Inc.’s market entry strategy in two different territories; the European Union & China.
This article will give you an amazing insight on Apple strategy on entry to EU and China. Do not forget to check Zoomio Blog for more articles!
Dealing with China is not easy for Apple, but it’s possible
every day we can hear a piece of fresh news about how the Chinese government is implementing extractive political and sometimes economic decisions. With a fear of the western countries, China controls people and businesses to stay in power. For instance, the Chinese government is trying to influence the Taiwanese government, and at the core, The US is trying to minimize impacts and face a threat.
Now let’s back to Apple’s market entry to china and how Apple did perfect to gain profit from china market.
Apple made various deals with the Chinese government to access the China market. For instance, Apple and China managed to have new agreements to carry away the US laws against the Chinese government.
In China, Apple has surrendered legal ownership of its customers’ data to Guizhou-Cloud Big Data, or GCBD, a company owned by the government of Guizhou Province.
For a successful market entry into China, you must work closely and give out data to the Chinese government.
Apple market entry into EU; easy but many regulations
When we analyzed EU market entry, we understood that it’s easier for companies such as Apple to enter compared to China, but they must follow many different regulations. For instance, by visiting This Link, you will find more than hundreds of rules for all active Apple products in the EU market.
In 2020, after four years of court process, Apple won an appeal against the EU’s $14.9 billion tax bill. Apple was ordered to pay billions in back taxes in 2016. This is one of the dozen courts cases that Apple or similar companies face in the EU market.
Apple’s Market entry important factors
Companies like Apple must establish a perfect strategy to be a dominant brand in the target market. Below, we have gathered the most important factors that we should consider most:
- Market Size
- Market Growth
- Government Regulations
- Level of Competition
- Physical Infrastructure
- Level of Risk
- Production and Shipping Costs
- Lower Cost of Production
Conclusion
In this article, we understood how Apple entered china market with an extractive political system and a developing country. Also, we analyzed the EU market, easier to enter but has many regulations to follow for companies like Apple. Finally, we read about the most crucial factor to consider before market entry to any country.
