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Apple`s market entry strategy into India Free essay! Download now

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Apple`s market entry strategy into India

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Apple`s market entry strategy into India essay preview

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Hence, Apple took initiative by introducing its iPhone to the Indian cellular market. En route, Apple made several strategic decisions intended to guide the company to success in its new sales territory. These decisions are evaluated in this document.

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Apple’s market entry into India

As one of the so-called BRIC nations, India belongs to one of the fastest growing economies in the world. With almost one billion inhabitants and an increasingly wealthy middle class, the country has been showing growing importance in the cell phone market.
The increasing demand for both, low-cost and high-end cell phones underlines the fact that India has become the fastest growing mobile and telecommunication market in the world. Logically, the country represented a promising target market for Apple in the course of its global expansion plans.

Hence, Apple took initiative by introducing its iPhone to the Indian cellular market. En route, Apple made several strategic decisions intended to guide the company to success in its new sales territory.

First, Apple created co-operations with two telecommunication companies to bring its iPhones to the market. Together, these strategic partners, namely Vodafone and Bharti Airtel, held a market share of 40.3% in the Indian telecommunication industry at that time. Thereby, Apple benefited from the existing customer base of its partners and coevally offered its target groups the choice for their preferred provider.

Specifically the partnership with Vodafone represented an important joint-venture for Apple, as the organization is the world’s leading telecommunication company and guarantees stable connectivity to its customers around the globe. Also, Vodafone agreed to sell the Apple iPhone in nine other countries than India. Hence, this cooperation was the door opener for Apple to enter several other promising cell phone markets. Additionally Vodafone was voted to be the “most creative and most effective advertiser of the year 2008”. This did not only fit to Apple’s objective to successfully advertise and sell its products, but it certainly also matched the image of innovation and creativity that Apple intends to be associated with.

As the second largest telecom service provider, Bharti Airtel serviced around 62 million customers in India and thereby represented another important supporter for Apple’s distribution plans. In India, the company is known for outstanding telecommunication and internet connectivity which perfectly matched Apple’s plans to offer a high quality product combined with excellent telecommunication services.

Through Vodafone as a distribution channel, the iPhone was mainly sold to India’s growing wealthy middle class, as prices were set as high as 499,00 USD. Bharti Airtel in contrast offered the iPhone at rather affordable prices and thereby focused on a broader customer base. Nevertheless, the iPhone was clearly meant to be targeting the premium segment of the Indian cell phone market.

Despite the fact that most of the 85 million handsets sold on the Indian cellular market from 2007 to 2008 were low-end products, the increasing demand for up-scale cell phones maybe enough to generate massive ...

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