The Fortune 500 Company that has been selected for the analysis based on the aspects of its marketing mix are local and which are global is Apple Inc. It is one of the American multinational corporation that is headquartered in Cupertino. The company designs, develops and also sells various consumer electronics, online services, different types’ personal computers and computer software.
The company employs various local marketing mix to determine brand’s offer. This include the use of pricing technique. Apple does not attempt to compete on price. It has reduced its domestic rate during the initial product launches. It also employs skimming, as well as, premium pricing strategies in order to compete with its rivals. For example, Apple iPad is being priced at a minimum cost of $499, Apple iPhone at $99 the home country. Another local macerating mix used by the company is product promotion. In this case, Apple Company provides special discounts to the local consumers on refurbished MacIntosh computers, the 8 GB iPod Touch, and iPod Nanos. In all the cases, there is one-year warranty that is included with the products. Moreover, the company has authorized Training Centers that are located throughout the U.S. The Centers provide instructions on the use of Mac systems, Apple and Mac OS X professional applications to the buyers. The product promotion is also carried out via Internet through the company’s website and through the use of iTunes online music (Pearson, 2014).
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On the other hand, the global marketing mix used by Apple Inc. include geographical bases/place. The organization has operating segments in various countries such as South America, Japan, Europe and Australia. The company has also implemented a vertical growth strategy by expanding its retail stores that sells its product through third-parties dealers. The geographical basis of Apple Company has been used to establish business all over the world.
The Fortune 500 Company that has been used for the analysis of globalization is Walmart stores. It is also one of the American multinational retail corporation operating various chain of discount department stores, as well as, warehouse stores. It is headquartered in Bentonville, Arkansas. The organization has more than 11,000 stores in 27 countries that are under a total 71 banner.
The various significant changes in the structure of Walmart that have been used in order to globalize the use of Price Leadership through EDLP. In the price leadership strategy, the organization planned to become the low-cost operator in the world while maintaining its momentum in sales. The company used the unique selling point of everyday low prices abbreviated as EDLP that was implemented and kept in order to balance between the cost and sales momentum throughout its branches.
In globalizing its operations, Walmart invested significantly in the acceleration of the e-commerce operations throughout the world. Its business operation was aimed at capitalizing on the opportunities that are being created in electronic commerce. It was achieved by acquiring several E-commerce spaces all over the world (Kirdar, 2009).
The company also used foreign strategy that involved forming a joint-venture in order to eliminate any economic, as well as, political challenges that could hinder its expansion in foreign countries. The company had entered into different foreign markets through the purchase of large stakes in the similar retailers. It then took a gradual control of ownership of those large stakes by increasing its investment through time.
Wal-Mart has also carried out dramatic transformation of the warehousing, as well as, logistics process that increased efficiency in third-party logistics companies. Goods from the company are also sold at the lowest possible price and with very low mark-ups on the actual cost of the production (Vedder & Cox, 2006).
