Introduction
Technology and trade are gradually becoming part of human lives as companies and businesses strive to bring to market the most sophisticated, valuable, and reliable products. Apple Company recently entered the global market with wearable technology. This Apple wristwatch is a unique version of a computerized smartwatch that can connect to the internet and other smart devices. The entrance of the technology into the global market evoked different customer reviews and public discussions, such as market competition, the benefits of using the technology, and recommendations for children from the age of five (Raja et al., 2019). Thus, Apple considered “global strategy” dimensions to counter-balance the impacts of the dangerous trade circumstances to expand the Apple Watch market from the perspective of corporate-level strategies (Ferreira et al., 2021). A recommendation for Apple to counter the keener competition circumstances using corporate strategies focuses on market concentration, vertical integration, and related and unrelated diversification of wearable technology.
Apple Watch Technology and Development
Apple has provided innovative device companies with credible opportunities through the entrance into the realm of wearable technology and healthcare. Through the introduction of wearable technology, users of the Apple Wristwatch enjoy massive benefits such as the ability to track location, the sensory ability to detect blood pressure, and pairing to other devices such as Bluetooth (Ferreira et al., 2021). According to Raja et al. (2019), United States parents are increasingly buying Apple Watches for their young children purposefully to track their locations and movements. With the wearable technologies’ cellular abilities, customers’ reviews and experiences indicate that the Apple Watch is fitted with small screens, which helps mitigate childhood development issues such as internet addiction and screen time.
Apple Watch is developed with technologies and various sensors that give users a wide range of experiences and benefits. Consequently, it is essential to note that wearable technology is expanding to further into the global market (Greg, 2020). The development and technologies that Apple used to structure the wristwatch include optical heart sensors, electrical heart sensors, location, accelerometer, and gyroscope. Other components include modern watch hardware, Wi-Fi, and Bluetooth connectors (Raja et al., 2019). Thus, the services are necessities, making the Apple watch marketable worldwide. Hence, Apple used “global Strategies” to counter-balance the keener competition circumstances (Lima et al., 2022). Nonetheless, Apple Watch and technology face competition from Samsung Galaxy Watch, Tic Watch Pro 3, Fossil Sport, and Garmin Venu.
Apple Watch Market Expansion
The “Global Strategies” dimension was the most beneficial strategy for Apple Watch to enter the global market. Arguably, with the advancement in wearable technology, as customers share positive experiences, Apple needs to expand its global market and reach out to customers in countries that do not have supplies (Ferreira et al., 2021). Using corporate-level strategies to expand the market, Apple Company should adopt corporate and business-level management strategies to capture and compete favorably. Market expansion aligns with strategic management processes depending on the company’s perspective. According to Castagnoli et al. (2021), Apple is considering corporate-level strategies to create a customer environment and expand beyond its current territory, China, which has thousands of competitors. Generally, Apple Watch applies corporate-level perspectives to expand the market.
The strategic management processes necessary for Apple Watch’s market expansion include strategic direction, internal and external analysis, strategic product restructuring, strategy implementation, and control (Lima et al., 2022). Through effective corporate strategy formulation, the company has to design realistic responsibilities and a directional setting, which includes the company vision, the mission, the enterprise strategy, and the long-term goals of the whole corporation, even as it enters the market.
Corporate expansion strategies rely on concentration, vertical integration, and related and unrelated diversifications. , a good suggestion would be to focus on market expansion and have specs worldwide (Raja et al., 2019). Although Apple has already achieved market concentration in some countries like China, the United States, and the United Kingdom, the in-depth knowledge of the market is an advantage that can be used to expand further and achieve more competitive advantage.
Business line Apple Should Explore
For over a decade, Apple Company has created a global brand for quality smartphones, personal computers, wearables, tablets, accessories, and services. Kahrović and Kahrović (2021) argue that iPhones have been Apple’s biggest sources of revenue by product, with America being Apple’s biggest market ever. Nonetheless, with the recent technological development and the production of wearable technologies, more Apple customers are having a different and better experience with the Apple Watch. According to Greg (2020), many parents, especially in America, cannot hide their joy in buying Apple Watch for their children even though they are as young as five. Consequently, the best suggestion for a business line that Apple should explore is the production and selling of more Apple Watch with specifications for small children aged between three and seventeen years.
To explore the strategic marketing plan for the Apple Watch, Apple Company should consider the current situation analysis based on the response from the customers and the expectations of the potential buyers. Thus, company analysis, customer analysis, and competitor analysis are critical for Apple as it strategically explores marketing for Apple Watch. An observation by Kahrović and Kahrović (2021) indicates that more than 42% of Apple Watch consumers are young people who prefer stylish wearing and watches daily. Besides the high demand for the watch by the young generation, the watch offers better experiences with the advantages of health consciousness, with makes more people want to use the Apple Watch (Greg, 2020). Thus, it is better to suggest that Apple Company explore strategic marketing for the Apple Watch compared to other product lines.
Exploring the Apple Watch business line would equally factor in the business environment and competitor analysis. According to Greg (2020), Apple has a better social, economic, political, and legal environment to introduce and market a new product. Huang and Chen (2022) argue that Apple has won customers’ trust. For instance, nearly all the parents who reviewed Apple accepted the technology and recommended it for their children. Apple might not face further negative competition since it would take a lot to make people lose customers’ trust when they are convinced that Apple gives the best experience in terms of wearable technology.
Pros and Cons of different business-level strategies
Businesses that use corporate-level strategies and approaches to explore the global market and face competition apply well-defined, outlined, and strategic plans toward achieving the company goals and objectives. For instance, Apple Company developing corporate-level strategies to improve their profits and exploring a new business line specializing in marketing Apple Watch would probably create a new customer niche.
Arguably, corporate-level strategy pros include encouraging innovations, increasing productivity, ensuring viability and resilience, and optimizing business models. Corporate-level strategies account for diversification, horizontal integration, and profit maximization (Greg, 2020). Exploring the Apple Watch business line using corporate-level marketing strategies resonates with the expansion, retrenchment, and stability strategies.
The cons of applying corporate-level strategies in exploring new business are that the company may experience difficulties dealing with new competitors and partners. Apple Company is already a big brand in the global market (Kahrović & Kahrović, 2021). Thus, taking on new responsibilities in dealing with and exploring Apple Watch may result in tumultuous business relationships even though parents with young children are already recommending the wearable technology for their children, venturing into new markets with no customer experience and lots of negative competition automatically disadvantages Apple Watch’s business line.
Recommendation and strategies
Apple Watch is the most recent wearable technology that applies to young children and is readily accepted by parents. Florian Fangohr, a parent and customer, waffled for close to a year between buying an Apple Watch for a recipient and had to contemplate between the cost and the benefits of gifting a young one Apple Watch. Valued at $279 at the time, Florian realized that the benefits of the Apple Watch outweighed the cost and settled on buying the Watch (Huang & Chen, 2022). This showed how valuable and ready the market is for the Apple Watch product line. Thus, the most strategic recommendation for the Apple Company is to expand its market for the Apple watch.
Apple Company should explore a strategic marketing plan for Apple Watch which should be technology based. Even though Apple initially had Apple Watch effective demographic segmentation focusing on customers aged between 20 and 45 years old, there is current customer demand for the same products for young users, especially children aged five years and above (Huang & Chen, 2022). Through the application of corporate-level business strategies to make entry into the global market. Immediate and long-term analysis of Apple Companies positions the company at a good position with great customer relations since the company is already iconic in the production and selling of quality products. According to Kahrović and Kahrović (2021), designing a wristwatch for children aged five has many risks from physical damage and mishandling. However, parents have shown more interest in having gadgets for their children. Thus, applying corporate-level business strategies to expand and explore the market for the product would be a great idea.
Summary
To summarize, a recommendation for Apple Company to counter dangerous competitive circumstances is to explore and expand the marketing for the new wearable technology. Arguably, technology and trade have become the most important part of human life, with companies trying to bring the most sophisticated, valuable, reliable, and beneficial products to clients and potential customers (Greg, 2020). The entrance of the Apple Watch into the global market has demonstrated positive reception by capturing a new market segment, young children, youth, young adults, and the aged, with each demographic segmentation having a particular aspect to benefit. For instance, in America, where Apple has the largest market, parents would consider buying Apple Wrist Watch for their young children for the location tracking advantage (Kahrović & Kahrović, 2021). At the same time, adolescents and young adults consider the Apple Watch stylish, thus creating a market for the segment. Older people are taking advantage of the watch’s sensory ability and features that can monitor blood pressure. Thus, the recommendation for Apple to explore and expand the business in the Apple watch product line could strategically add to the company’s advantage.
While there are pros and cons of different business-level strategies for global market entries, corporate-level strategies seem to be the best option and perspective for Apple Company to introduce and grow the market for Apple Watch. With the features of corporate-level strategies, Apple Companies can explore a new product line, the Apple Watch, which draws advantages from improved innovations, optimizing business models and ensuring viability (Castagnoli et al., 2021). Consequently, with market acceptance and potential clients recommending the wearable technology, Apple Watch should expand markets globally and further explore the Apple Watch’s production, innovation, and profitability.
References
Castagnoli, R., Büchi, G., Coeurderoy, R., & Cugno, M. (2021). Evolution of industry 4.0 and international business: A systematic literature review and a research agenda. European Management Journal.
Ferreira, J. J., Fernandes, C. I., Rammal, H. G., & Veiga, P. M. (2021). Wearable technology and consumer interaction: A systematic review and research agenda. Computers in Human Behavior, 118, 106710.
Greg, R. (2020). Strategic Review on Apple Inc Marketing in the United States of America. Journal of Marketing and Communication, 3(2), 47–61.
Lima, F. V., Kadiyala, V., Huang, A., Agusala, K., Cho, D., Freeman, A. M., & Druz, R. (2022). At the Crossroads! Time to Start Taking Smartwatches Seriously. The American Journal of Cardiology, 179, 96–101.
Raja, J. M., Elsakr, C., Roman, S., Cave, B., Pour-Ghaz, I., Nanda, A., Maturana, M., & Khouzam, R. N. (2019). Apple Watch, Wearables, and Heart Rhythm: where do we stand? Annals of Translational Medicine, 7(17), 417–417.
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