Introduction
In the book entitled Fundamentals of International Business the authors discussed the idea that a company can “romance” the globe by developing products and services adapted to the local culture. In the case of successful attempts, the products are well received by the locals but at the same time the brand became a change agent – changing the lifestyle of the people. In the 21st century there are a few companies that can make this claim and one of them is a global phenomenon known as Apple. The success of the company cannot be explained by a strategy that is tailor-made for a particular culture but a strategy that changes the culture of consumers when it comes to the use of electronic products.
The history of Apple was recently covered by Businessweek and the author of the article captured the current value of the company through the following statement: “Apple’s history is the stuff of inventors’ dreams and inventors’ hopes” (Stonington, 2011, p.1). Stonington’s assessment of Apple’s success is not an exaggeration. The products of this company are well-known from California to the outback of Australia. But aside from the glowing review Stonington pointed something else and he said “While the company’s early computer, especially the Apple II line, brought the world of personal computing into offices, homes, and schools, there were more than a few bad apples” the Pippin, Quicktake camera, Apple III and Lisa did not do well (Stonington, 2011, p.1). It is this roller-coaster ride to global success that makes Apple a fascinating case study.
Culture
One of the most intriguing concepts discussed in the Fundamentals of International Business is culture. In the second chapter the authors highlighted the fact that it is impossible to succeed internationally if a US-based company insists on a “cookie-cutter approach of transplanted products from the United States works in key markets such as China, India, Latin America, Russia, and South Korea” (Czinkota, Ronkainen & Moffet, 2009, p.22). In a globalized world innovation is the key to success and this can be achieved by being sensitive to the local culture of the host country.
One of the best examples found in the book was the way Disneyland Hong Kong was able to reverse a losing trend. The world-renowned company already had a string of successful hits in America with theme parks in Los Angeles and Orlando. In the international scene, Disneyland Tokyo was also a certified hit. Furthermore, Disney products are well-known all over the world but when the company decided to open Disneyland Hong Kong, the magic seemed to disappear. The company only achieved success when it became more culturally-aware transforming their packaging and presentation in accordance to Chinese culture. For example dragons and Chinese music became a fixture in some of the park’s more popular parades.
Culture is defined as “an integrated system of learned behavior patterns that are characteristic of the members of any given society” (Czinkota, Ronkainen, & Moffet, 2009, p.24). CEOs and corporate strategists must fully understand the importance of culture because it would be impossible to break into international markets without knowing the cultural taboos that may prevent customers from patronizing their products.
If one applies the concept of culture in a global enterprise there must be a high-level of sensitivity to other people’s culture not only to prevent the sale of offensive products and services but also to develop products that customers know how to use and appreciate. Thus, a faithful application of this principle requires companies to manufacture products that are based on the preferences of the local population. In other words mass produced commodities may not appeal to the taste of the local consumers. This process is otherwise known as acculturation when a company adjusts and adapts to a particular culture (Czinkota, Ronkainen & Moffet, 2009, p.24). Thus, the phenomenal success of the Apple brand in a global scale is outstanding because the overall design and packaging are similar whether one purchases an iPad in Mumbai or London.
Change Agent
Instead of adapting and adjusting to the preferences of its target market, Apple became a change agent. For an organization to be a change agent it must be able to alter “commonly held values or behavior patterns that eventually result in the blurring of cultural distinctions” (Czinkot, Ronkainen, & Moffet, 2009, p.25). In the case of Apple it can be argued that the process of becoming a change agent did not occur by confronting age-old values but rather in its ability to present to the world a new perspective and a new lifestyle.
The alteration of commonly held values to create a particular behavioral response is easy to do when it comes to technology. If Apple offered a product that is marketed as a better alternative to chopsticks for instance, there is a less chance of success in the Chinese market. In other words culture has many levels. There are value systems that are ingrained in each culture and some things are more important than others. The older the tradition, the more embedded the practice is into the consciousness of the people and the more difficult it is to change. Apple did not seek to alter a fundamental behavior characteristic. This company focused on a value system that has not yet been formed through centuries and that is how to view and appreciate certain types of electronic products.
Innovation and new technology are some of the concepts that Apple used to its advantage. The computer and miniaturized electronic gadgets did not exist in the 19th century and only became popular in the middle part of the 20th century. Thus, the culture that was formed with regards to the usage of computers has not yet been ingrained for hundreds of years. It was relatively easier for Apple to come in and convince consumers that there is a better way to do things.
Another important implication of Apple’s global success is that people are willing to change a particular value system if it is practical, efficient and increases their perception of self-worth. For instance, Apple’s iPad is a revolutionary product because it does not only increases the efficiency of a customer to perform certain activities – surfing the web and reading ebooks from a lightweight handheld device – but they consumers are led to believe that beautiful design of the product increases their value as a person. They are made to believe that they are holding something comparable to an accessory. The iPhone has this effect on people.
Steep Learning Curve
Apple’s success in the international market was never an easy feat. It was the combination of hits and misses as Stonington would like to put it. It is the taste of early success and consecutive failures that formed in the heart of the corporate leaders the blueprint for success. It is none other than the need to innovate and to provide a product that the customers needed. The Apple I computer changed the way people come to understand personal computing but the Apple III is an example of inefficient design. The same thing can be said about the Newton one of the earliest versions of a personal digital assistant. But this product did not offer anything new, therefore, it was overtaken by the well-designed Palm Pilots (Stonington, 2011).
Apple began to come alive with the release of iMac and iBook in the late 1990s and one commentator succinctly explained not only the secret to its success but the main reason why Apple has become a change agent in a global scale and he wrote “Apple products dazzle by giving us what we didn’t know we wanted but suddenly can’t live without” (Stonington, 2011, p.18). It is a combination of sleek design and high-functionality. The iPhone and the iPad exemplify this view. This is not an easy path to follow but other companies can focus on the need for innovation and the creation of products that provide a more efficient way of doing things. It would help if they can offer a beautifully-designed product.
Conclusion
For a company to achieve global success it is imperative to understand the significance of culture and then to acculturate their products to suit local needs. But Apple provides an alternative route and that is to become a change agent. In the case of Apple there was already in existence a particular culture when it comes to the use of electronic products. But Apple entered the market knowing how to convince consumers that there is a better way. Thus, the company developed products with sleek design and high-functionality, transforming the way people accomplish computer related tasks such as web surfing, downloading music and playing games – all in one mobile device.
References
Czinkota, M. I. Ronkainen, & M. Moffet. (2009). Fundamentals of International Business. New York: Wessex Publishing.
Stonington, J. (2011). Apple’s Greatest Hits and Misses. Web.