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Apple is expected to make the lowest income between 2016 and 2018 compared to other years in the past. This follows revenue from China which is its largest market outside America in the first quarter of 2016 (Kharpal, 2016). On the same note, Apple’s problems in China seem to be increasing with the recent Beijing patent disputes alongside tariff woes (Dou 2016; Wakabayashi, 2016). To prevent possible future adversities, Apple should improve its international operations by considering global cooperation, agreements, and call for government intervention. . [“Write my essay for me?” Get help here.]
Analysis
Apple’s superior marketing strategy is one of the reasons it has endured competition in the volatile global electronics market (Gillespie & Hennessey, 2015). By using the global marketing strategy, for example, Apple has expanded its dominance of the Chinese market. However, the current tense political and economic relations between the US and China risks jeopardizing all these efforts. Some protectionist policies, sanctions, and trade agreements meant to shield American companies from the Chinese exploitative business systems make the operations of American multinational corporations in China difficult. For example, the anti-dumping law that seeks to curb an overflow of cheap Chinese goods into the United States has resulted in several counter policies by China (Dou, 2016). . [Need an essay writing service? Find help here.]
Following increased claims of harassment of American companies by China, it is expected that the U.S. will take action to protect its companies from unfavorable Chinese trade policies. As of now, for instance, American companies in China are subjected to unfair intellectual property laws whereby they are forced to share proprietary technology with Chinese competitors (Dou, 2016; Wakabayashi, 2016). The United States will most likely implement protection action against such policies.
One of the expected protection action against such measures in the period 2016-2018 will be the enactment of American ingenuity and investment laws to force China to uphold and adhere to intellectual property laws. Such a move will shield companies such as Apple from unfair Chinese investment trade laws such as the one requiring foreign companies to share proprietary technology with rivals (Dou, 2016; Wakabayashi, 2016).
Related Assumptions
The primary assumption for this analysis is that both China and U.S. are free markets. The assumption is based on the Factor-Mobility Theory that states that in such markets, commodities move from areas where they are sufficient into areas of scarcity, and this leads to lower costs (Gillespie & Hennessey, 2015).
Solutions
Due to the expected protectionist actions likely to be taken by the U.S. between 2016 and 2018, Apple should look at the following suggestions. First, Apple should try to create healthy economic relations with China at its level as a company. Bearing in mind that China is its largest market outside the United States, Apple should not take a hard stand on its relations with the Chinese government for such might lead to its expulsion from the Chinese markets. This or any other major hitch would have dire consequences on its revenue (Steele, 2016). . < Click Essay Writer to order your essay >
Evaluation
In the period between 2016 and 2018, Apple’s operations in China are likely to face many challenges, as evidenced by the problems it is already experiencing currently. However, by taking a neutral stand in the political affairs of its government and the Chinese government, the effect of such will be minimized. Apple can still retain its hold in the Chinese market by improving its relations with the Chinese government.
Recommendations
Under current conditions, it is advisable that the company improves the quality of the product to meet the needs of the consumers. For example, they should add features that make free messaging easier in China (Kharpal, 2016). Similarly, Apple should talk to its government about the need for the cultivation of a good relationship between the two nations. Harsh protectionist policies and sanctions would hurt the trade relations between the two countries, thus causing Apple massive losses.
Implementation
Apple should research on the features that best suit the Chinese market and include them in its upcoming devices. It should also invest heavily on finding ways of upholding quality to compete more favorably in China. The company should also present the issues to the government, make agreements, and urge the government to intervene on policies that are hurting its trade in China.
In sum, Apple is likely to face numerous challenges in China from 2016 to 2018 due to the possible protectionist actions by the American government. The Chinese Government retaliation to these measures might be a major blow to Apple’s operations in China. Apple needs to bolster its economic relations with the Chinese government and take a neutral stand to survive in China in the stated period.
References
Dou, E. (2016). In China, Apple’s local competition takes a bite out of its revenue. WSJ. Retrieved 31 August 2016,
Gillespie, K. & Hennessey, H. (2015). Global marketing. London: Routledge.
Kharpal, A. (2016). China could shake Apple’s earnings to the core: Here’s why. CNBC. Retrieved 31 August 2016
Steele, T. (2016). Government can’t force Apple to provide locked iPhone data, judge rules. The Scoop Blog. Retrieved 31 August 2016
Wakabayashi, E. (2016). Apple’s challenges in China underlined by patent dispute. WSJ. Retrieved 31 August 2016
