We live in a rapidly evolving world where technology is making almost everything possible. People have started technological companies to make transportation faster and more efficient with the new technology. Companies such as Boom Technology have started to design high-speed passenger supersonic airlines such as Boom venture or boom jets. These jets are targeting to have a range of approximately eight thousand kilometers. The primary purpose of this paper is to provide a comprehensive literature review for the boom jets based on the definition of what boom jets are, the reason for their introduction in the market, what boom jets are doing with SST aircraft, their sustainability, and comparison between sustainability records of Tu-144, Concorde, and the boom jets.
Since the Concord era, various companies have developed new entry models of supersonic aircraft, but most have been unsuccessful due to bankruptcy. Currently, the surviving companies are dependent on the booming venture capital funding model. The boom jet or the boom venture is among the supersonic planes planned to be launched by 2029. According to Boom (2021), a boom jet is a supersonic airliner, also named the boom venture, designed to maintain Mach 2.2 with a range of over 1,900 kilometers and powered by three 19kN dry General Electric J85-15s (Boom, 2021). The launching and use of the boom jets are expected to cost more than double the total cost of the Aerion. However, the jets will be able to carry more than five times more passengers than Aerion. Boom jets are expected to fill the gap left by Concord and Aerion in terms of speed and capacity.
Air traveling is the most convenient means so transport from one continent to another. According to Rhoades (2008), the introduction of the boom jets in the market will significantly help other industries by ensuring convenient transport of passengers from one location to another throughout the globe (Rhoades, 2008). The International Air Transport Association (IATA) expects more than seven billion passengers to travel by 2035, almost double the 3.5 billion air travelers by 2015 (IATA, 2016). Therefore, introducing the boom will help realize and attain the set goal by the International Air Transport Association since the boom jets move faster than ordinary planes. According to The International Air Transport Association, the global aviation industry in the United States is currently at thirty-five billion dollars in profit. By 2035, the profits are expected to increase rapidly upon the introduction of the boom jets since they move faster and are expensive (IATA, 2016). The revenue generated from business solely passengers is expected to increase by more than twenty-five percent with the introduction of the boom jets. Therefore, introducing the boom jets will be of significant help to the government and the economic growth of the United States and any other country where the boom jets will be operating.
According to Dourado (2016), the remarkable growth in air traffic requires faster and more efficient commercial transportation (Dourado, 2016). The existing projects require competition and development innovation to make the air transport sector faster and more reliable. The only existing option is the introduction of supersonic boom jets. Besides the need for competition, the aviation market has rapidly grown. However, the technology seems to be stagnant. For instance, the time needed to fly across the Atlantic Ocean has been almost the same for almost forty years ago. Dourado (2016) argues that such an opportunity will suit such an extensive and remarkable industry (Dourado, 2016). The increasing demand for intercontinental flights and the market growth are establishing a quite promising ground for the introduction of boom jets and other supersonic-speed commercial airplanes.
Supersonic transport (SST) is a civilian supersonic plane that can transport passengers faster than the speed of sound (Aviation Week, 2016). However, the speed of sound is determined by several factors, including humidity and air temperature. The relationship is referred to as Mach1, as it shows the speed of an object such as a supersonic aircraft compared to the speed of sound, where Mach 1 is the same as the speed of sound. According to Sun (2017), there have been several challenges raised against supersonic transport (SST) in the past (Sun, 2017). Comparing the challenging raised against the benefits of the boom jets, there is no balance. Therefore, the introduction of the boom jets will hinder the achievements of their aims and their survival in the aviation industry.
According to Boom (2021), the boom jets’ newest SST aircraft will be sustainable. The boom jets’ newest SST will be an upgrade of the old SST model, and therefore, most of the raised concerns and challenges of the older SST will be addressed. According to Blake (2021), the founder and the CEO of the Boom supersonic, the newest boom jets will have net-zero carbon due to the approach used in designing the jets and the way the aircraft will be operated as well as recycled (Blake, 2021). Blake stated that the vision of the Boom Supersonic is to have a world more accessible, and therefore, they are working all the best to ensure the vision is achieved. The jets are set to ensure fuel efficiency. The company is applying the lessons from XB-1 to ensure the newest SST boom jets design is maximized for sustainable performance (Blake, 2021). According to Boom (2021), the company has also signed the Amazon Climate Pledge. The new jets will be capable of net-zero carbon on a life-cycle basis and fly on 100% sustainable aviation fuel (Boom, 2021).
According to Economist (2018), the aviation industry is among the significant sources of greenhouse gas emissions worldwide with critical effects on climate and atmosphere (Economist, 2018). The aircraft manufacturers are trying hard to switch to more environmentally friendly aviation by using novel engine designs and lighter materials than the ones used to create the Concorde and Tu-144 (Sun, 2017). The manufacturers are trying to integrate modern technology into the aviation industry to minimize the two percent of the total carbon dioxide emissions caused by the aviation industry (ACRP, 2011). To achieve sustainability better than that of Concorde and Tu-144, Boom Technology is applying the lessons from XB-1 to ensure the newest boom jets design is maximized for sustainable performance. According to Sun (2017), several environmental-related challenges have been raised concerning Concorde and Tu-144. Therefore, the boom jets are better than Concorde and Tu-144 in terms of sustainability. Other concerns about Concorde and Tu-144 were sonic boom, noise pollution, local air pollution, atmospheric ozone depletion, climate change, cosmic radiation, and fuel inefficiency (Economist, 2018). Most of these concerns and challenges have been fixed in the new boom jets, and therefore, they will be better than Concorde and Tu-144 in terms of operation and sustainability.
Having reliable, safe, and affordable air transportation is critical to life quality, environmental safety, and economic growth. The introduction of the boom jets might push the two steps forward by re-introducing commercial supersonic boom jets with a combination of new and improved technology. The boom jets can be a promising disruptive innovation with big odds of reshaping the airline industry by putting into operation accessible and affordable high-speed airplanes that will be spread to a larger population.
Aviation Week. (2016). Revival of Supersonic? Retrieved from: https://boomsupersonic.com/static/AviationWeek-Oct2016.pdf
Boom (2021). Affordable Supersonic Flight on the Horizon: Boom Unveils XB-1 Supersonic Demonstrator. Retrieved on 30-1-2021 from: https://www.prnewswire.com/news-releases/affordable-supersonic-flight-on-the-horizonboom-unveils-xb-1-supersonic-demonstrator-300362692.html
Boom Supersonic. (2020). Why supersonic flight? Retrieved on 20-2-2020 from: https://boomsupersonic.com/faq/#q2
Blake Scholl CEO Boom Supersonic (2021). High Flyer Interview: Blake Scholl, CEO, Boom Technology. Airways Magazine. Retrieved on 30-1-2021 from: https://airwaysmag.com/industry/blake-scholl-ceo-boom-technology/
Dourado, E., Kotrous M. (2016) Airplane Speeds Have Stagnated For 40 Years. Mercatus Center. George Mason University. Retrieved from: https://www.mercatus.org/publication/airplane-speeds-have-stagnated-40-years
Economist. (2018). Supersonic jets may be about to make a comeback. Business travel. Retrieved from: https://www.economist.com/blogs/gulliver/2018/01/reinventingconcorde
IATA. (2016). Retrieved on 30-1-2018 from: http://www.iata.org/pressroom/pr/Pages/2017-12-05-01.aspx
Rhoades, D.L. and Waguespack, B. (2008), “Twenty years of service quality performance in the US airline industry”, Managing Service Quality, Vol. 18 No. 1, pp. 20-33.
Sun. (2017). Review and prospect of supersonic business jet design. Progress in Aerospace Sciences, 90, pp. 12-38.
Boosting Workplace Motivation Through Innovative Digital Communication Tools Essay Example For College
Digital communication refers to the process of sharing information and knowledge through discrete means, from and between people, computers, intelligent machines, and things via distributed transmission channels (Hofacker, 2018). It involves the encoding, transmitting, and decoding of information. This is a contrast to traditional communication, which involves relatively unmediated forms such as print media, personal visits, and telephone calls. The transforming power of digital communication has been observed and studied in many industrial domains, with particular emphasis on health care. These tools are not only innovative, but they are also extremely useful in workplace communication and motivation.
Digital communication tools are key to modern leadership and management. Not only do these tools help executives keep in better touch with remote staff and dispersed teams, they also provide an opportunity to share the company’s vision, celebrate employees’ achievements, and keep everyone believing in the company’s mission. Attracting and retaining talent is a Herculean task for many companies. Today’s workforce demands flexible, rewarding careers that allow them to develop professionally, share their passion for the work they do, and feel like a valued member of a team.
The use of digital communication tools allows employees to communicate effectively with one another, as well as allows them to set tasks and plan work schedules. This helps to synchronize the operations and plans of the workplace. The software tools also help the employees communicate and collaborate in an easy way, in which they are able to share ideas, documents, and presentations and enjoy better interaction among themselves.
Internal Communication Satisfaction as an Employee
Prof. Dr. Pradnya Chitrao’s research on employee satisfaction with internal communication explores the effect of internal communication on work satisfaction, organizational commitment, and organizational engagement in Pune, India’s industrial capital. The research examines data from around 300 shop personnel. According to the findings, the amount of internal communication is positively associated to both employee happiness and commitment ratings, which measure the level of incentive for workers to stay with their company. Internal communication was shown to be an effective staff incentive technique inside these retail organizations.
When the motivation of workers was associated with the satisfaction of communication, it became more important for me to study this relationship (Chitrao, 2014). Compared to other sectors in India, there is a lack of research on everything from communication satisfaction to employee commitment at work and employee motivation. The greatest dissatisfaction among employees was related to interpersonal communication. Therefore, it is important to investigate how a company’s digital communication tools are used and communicated by managers and supervisory staff, by what means marketers can foster such activities, and how and why marketing management can improve the effectiveness of these tools.
Harnessing creativity and innovation in the workplace
In the study done by Oldham, Greg R., and Nancy Da Silva on “The Impact of Digital Technology on the Generation and Implementation of Creative Ideas in the Workplace,” the study discusses the findings generated from a survey conducted on 1590 employees. The authors argue that modern communication technologies (e.g. e-mail, social media) impact creativity in the workplace by giving employees more opportunities to share their ideas with colleagues who may be far away physically, but are still connected digitally. They discuss how this can increase motivation and also explain how it can boost collaboration as people share their information in a more efficient manner.
The results showed that the use of digital technology in terms of how much participants used it and how they preferred it was positively associated with performance outcomes (p 0.05). Moreover, there were significant positive relationships between the use of digital technology and participants’ creativity traits (r = 0.751, p 0.001) and motivation (r = 0.187, p 0.05). The results suggested that managers should encourage their employees to adopt new digital tools for work-related purposes to enhance their creativity and to facilitate knowledge sharing through information-acquiring digital technology to improve innovation at work. Employee motivation is one of the biggest challenges faced by managers. This research evaluates the impact of digital technology on creative ideas and work motivation in the workplace. Results show that digital technology replaces non-digital technologies with respect to creative idea generation and implementation. The study also finds that digital technology has a positive effect on employee motivation because it makes the employees feel valued and more loyal to their company.
The role of knowledge-oriented leadership in knowledge management practices and innovation
Donate and de Pablo (2015) conducted research into the knowledge-oriented leadership style in order to better understand its relationship to knowledge management practices and innovation. Leaders are critical to the advancement of organizational innovation and knowledge management. As a result, the primary objective of this study is to establish a link between an organization’s innovative behavior, knowledge management practices, and leadership. More specifically, it aims to identify how knowledge-oriented leadership can influence innovation and knowledge management practices in organizations. For the present study, research was performed using a quantitative analysis. In particular, the participants were organizations operating in Portugal that implement innovation and knowledge management practices (Donate & de Pablo 2015).
Knowledge exchange, according to Donate and de Pablo (2015), is the foundation for innovation. Leaders must give the appropriate tools, resources, and incentives to facilitate the correct flow of information. Once the tools are in place, it is important that the workers are motivated by their leadership team to use them in their daily work. A large proportion of employees who have not received sufficient digital skills training are often reluctant to communicate digitally with their colleagues. Leaders need to understand that employee motivation is vital for organizational success. For the leaders to be effective, they must successfully implement leadership styles that are appropriate for the situation and place a strong focus on teamwork and collaboration. Leaders must understand digital communication tools in order to avoid any future barriers that could hinder progress through lack of understanding.
Competing through employee engagement: a proposed framework
This article investigates the link between employee engagement and corporate success in the UAE. The research study was conducted with the purpose of gaining an understanding of people management practices and employee engagement initiatives and their impact on business performance. Employees in an organization are strategic assets and can help in creating a competitive advantage for the organization.
Employees are the most important assets of a business. Their performance and well-being largely determine the success or failure of an organization. Therefore, it is imperative for companies to understand their employees’ needs in order to design appropriate motivational strategies. As an emerging form of technology, social media is becoming an integral part of our lives, whether for personal or corporate use. This article reviews the current body of research on employee motivation and the integration of digital communication tools and social media within organizations. It begins with a discussion on the current existing models of employee motivation, focusing on two key work factors, such as job characteristics and high-performance work systems. Next, the various roles that digital communication tools play within organizations in enhancing employee motivation are identified. By reviewing prior literature, this paper examines how they can contribute to improving organizational performance and productivity as well as how they support several key aspects of key motivators, including recognition, feedback, and fun. This paper concludes with a proposed framework integrating digital communication tools and social media within existing models of employee motivation, highlighting gaps in existing research themes. Potential research directions that further investigate the impact of social media on organizational commitment and job satisfaction are identified, together with avenues for future empirical research.
Al Mehrzi, N., & Singh, S. K. (2016). Competing through employee engagement: a proposed framework. International Journal of Productivity and Performance Management, 65(6), 831-843.
Chin, C. P., Evans, N., Choo, K. K., & Tan, F. B. (July, 2015). What Influences Employees to Use Enterprise Social Networks? . A Socio-Technical Perspective. In PACIS , 54.
Chitrao, P. (2014). Internal communication satisfaction as an employee motivation tool in the retail sector in Pune. The European Journal of Social & Behavioural Sciences.
Donate, M. J., & de Pablo, J. D. (2015). The role of knowledge-oriented leadership in knowledge management practices and innovation. .Journal of Business Research,, 68(2), 360-370.
Hofacker, C. F. (2018). Digital Marketing: communicating, selling and connecting. Edward Elgar Publishing.
Oldham, G. R., & Da Silva, N. (2015). The impact of digital technology on the generation and implementation of creative ideas in the workplace. Computers in Human Behavior, 42, 5-11.
Brand Analysis: Apple Inc. And IPhones Free Writing Sample
Apple Inc. is consistently ranked as one of the most financially viable corporations in the United States, as proved by its inclusion on the top performing corporations. The primary reason the corporation’s product lines, particularly the iPhone, were chosen as the subject of discussion is that, while they are extremely popular in North America, they are extremely unpopular in South America and Sub-Saharan Africa. North America is the company’s main regional market (Goodfellow, 2021). The market not only generates about 40% of net sales, but Apple-owned retail chains that sell a variety of products are the most concentrated. Apple Inc. sells iPhones, iPads, Apple Watches and many other products. The iPhone was the company’s most profitable product, so its choice as a product was intentional. iPhone sales make up about 45% of Apple Inc.’s total revenue. Through this emphasized reasons, iPhones sold by Apple Inc. are not only available in limited North American market, but also in the physical market.
The iPhone is Apple Inc’s most profitable single product. iPhone sales in 2021 accounted for 46.6% of total sales in the fourth quarter (Apple Inc., 2022). The development of the original iPhone model was kept secret primarily to protect its innovative concept (Lyytinen, 2021). Nonetheless, Apple Inc. announced the product’s launch in 2007 and started to sell it in the U.S. in June of that year. After that release, given its innovative mobile design, the product was very popular.
In contrast to previous products, the iPhone design features a touch screen with no physical hardware buttons, quad-band GSM mobile connectivity with features to enhance GPRS and EDGE data transfer, and provision for continuous internet access (Glimstedt, 2020, p.120). These features set it apart from Apple Inc.’s competing companies’ product lines. The iPhone was initially priced at $ 400 for the 4GB model and $ 500 for the 8GB model. Because of the evolutionary development of smart phones, the technology market is subject to substantial changes in customer preferences.
Products that may be attractive to consumers at some point may not provide consumers with similar value over time. One such issue was influenced by Apple Inc., on the innovative iPhone, which forced the suspension of sales of the original model in 2008. According to Silver (2018), the company had sold more than 6 million units, most of which were localized to the North American market when the suspension happened. Apple is well-known for its cutting-edge technologies and business models. The corporation was capable of overcoming this challenging task by strengthening the original version and creating better versions of the product over time, thanks to these innovative trends. The iPhone 13 Max Pro, iPhone 13 Pro, iPhone 12, and many other models and series are among the most popular (Lyytinen, 2021).
The availability of a brand is a main factor of its success. This includes physical as well as mental availability. The physical presence of a commodity in a specific market is referred to as physical availability. In a buying situation, mental availability represents the likelihood that a consumer will think, notice, or recognize a specific company’s product. Although the iPhone has high intellectual and physical availability, the brand’s availability is primarily limited to the North American market. For example, in the United States, more than 100 million people use the iPhone, which accounts for about 47% of all smartphone users in the country (Reisinger, 2021). The availability of the brand in the market is critical to the performance of the corporation.
Apple’s strategic marketing and growth strategies have enabled it to achieve such a strong brand availability. The organization has been able to convince customers that the iPhone and its successive product lines are superior to their competing brands in terms of reliability and digital security through extended marketing (Vasylieva and James, 2021, p.18). In this way, the company was able to improve the mental availability of the iPhone in the US market. Because of Apple’s widespread distribution system in the country, iPhone products are now physically available in this market. These figures do not apply to other markets, particularly those in South America and Sub-Saharan Africa. In North America, iPhone brands are widely available, but this is not the case in these other marketplaces.
In South America and Sub-Saharan Africa, the most significant barrier to achieving mental and physical availability is the cost of this product. Consumers in these markets are unsure whether they are still getting good value for their money when purchasing an iPhone. As a result, when such needs arise, most consumers opt to purchase a smartphone sold by a different company. Apple’s limited distribution system in these market segments makes it difficult for the organization to physically make the iPhone accessible to clients (Kamnek and Klimánek, 2020, p.90). Customers find it difficult to obtain the product due to the limited number of retail stores in these markets. Apple releases the use of third party sales agents and retailers. However, this is further worsens the situation because it is exposed to consumers to raise the price of the iPhone.
The iPhone is easy to identify, owing to its distinct logo. The company logo that designs and produces or sells smartphones is one of the first things customers notice when they see a phone. As a result, Apple ensures that the iPhone is a memorable product. This is the feature that has elevated the iPhone brand to the status of an icon and the most well-known brand (Perch, 2022). Sophisticated design that creates ease of use and aesthetic impact is Apple’s main focus. Consumers also associate the iPhone with special quality. Therefore, consumer have the willingness to buy the phone when looking to purchase a smartphone.
Brand Equity (Keller’s CBBE Model)
The worth associated with a firm’s or product’s brand is referred to as brand equity. Kevin Lane Keller created a model for enterprises to use to assess brand equity. His concept is structured in the shape of a pyramid, and the different levels within the structure highlight the key questions that customers frequently ask about the company or brand without realizing it (Tasci, 2018, p.145). The first question concerns brand identity. Combining Apple Inc.’s technological improvements with a range of marketing strategies will raise iPhone market awareness. When selling a product, the company should ensure that prospective and existing consumers are aware of the device’s remarkable and safe functionalities. The corporation is also identified with its advanced and innovative brands, such as the addition of a dual-lens camera in portrait mode to the iPhone 7 Plus. Because of their respect and admiration for the brand, all of these factors build customer loyalty to iPhone purchases. Even if Apple introduces a new iPhone model, consumers are eager to buying it since they more importantly have a favorable attitude towards the product, and also value its brand equity.
Figure 1: Keller’s Brand Equity Model
A brand mantra, also widely recognized as a brand essence, is an articulation that describes the significance of what a brand represents or the image it wishes to convey to buyers. It integrates and shares the key ideas behind branding and channeling within competitive standards (Lalaounis, 2017, p.356). All Apple Inc. products, including the iPhone, have a corporate brand called “Think Different.” Apple’s brand mantra is a complete integration of the company’s focus on creativity, emphasizing the creativity of the company as it creates its products.
International Market Analysis
Kenya is one of the evolving marketplaces into which Apple Inc. should consider investing in to expand its operations. For the last ten years, the country’s population has increased at a two percent annual rate (Euromonitor International, 2021). Kenya’s growth in population means that there are more prospective consumers for purchasing iPhones. This, in conjunction with continuous growth and development over the same time frame, creates an opportunity for Apple Inc. The corporation must capitalize on its customers’ growing resources and consumer purchasing power in Kenya. These are prospective buyers who can now purchase Apple’s iPhone products.
Kenya, unlike the majority of Sub-Saharan African countries, has a robust copyright protection framework (Euromonitor International, 2021). Not only does the nation have strict copyright laws, but it also has a strong legal system that protects the rights endorsed by such laws. Apple Inc.’s intellectual property (IP), which encompasses copyrights, trademarks, and patents, exemplifies its innovation. The level of security granted to such forms of intellectual property in Kenya signifies an opportunity for the firm to not only develop but also expand its customer base because the law protects their IP rights from infringement.
Over the last couple of years, Kenya has consistently experienced strong economic growth. When combined with the nation’s liberalized trading platform, this means that there are still entry barriers that could hinder the acceptance and subsequent sale of the iPhone in the country (Euromonitor International, 2021). However, high inflation and the resulting volatility are a source of concern, given that as inflation rises, the prices of commodities in the market also rise, making it difficult for people to buy the iPhone. The high price of the iPhone in this case means that the customer is choosing to spend the money they have to meet their basic needs. Since the product price is high, there is almost no money left to inadvertently buy luxury goods, but the iPhone seems to be in such a situation.
Kenya has been relatively peaceful and stable, with the only major crisis being post-election conflict in 2007-2008 (Euromonitor International, 2021). A situation like this, combined with policy initiatives to liberalize trade, makes the state an appealing investment hub. However, by coming to market, Apple Inc. will be forced to deal with widespread corruption in its political sphere. This could be a problem because obtaining political backing for a large investment project, such as establishing a presence in Kenya, may necessitate bribery. This is contrary to the corporation’s ethical practices.
Kenya is a technologically savvy country, as evidenced by the country’s overall internet access and the recent governmental plan to change Kenya into the digital realm. Despite this, rural areas have lower rates of adoption of technology and absorption than urban areas (Euromonitor International, 2021). As a result, entering the Kenyan market will necessitate Apple Inc. strategically locating its functions in the nation’s large cities and constituent municipalities, as these are the areas with the greatest number of consumers.
Various organizations are present in Kenya’s smartphone market. However, Apple will face foreign competition from Tecno, which has a thirty percent market share, Samsung, which has a fourteen percent market share, and Huawei, which has a ten percent market share (Kibuacha, 2021). Local firms such as Safaricom will also compete with iPhones. Safaricom’s competition should be light, given the popularity of its Neon model in remote regions, which the corporation should avoid operations due to lack of sufficient technology acceptance rates and poverty levels, which means the value of iPhones is out of reach for the majority of people residing in these areas.
Despite the fact that India’s population growth has significantly slowed in the last decade, the nation’s large population combined with continuous economic growth makes it an appealing investment destination (Marmol, Feys and Probert, 2018, p.98). A large percentage of its residents are young adults. Smartphones are extremely popular among this segment of the population. The fact that many of them are completing their schooling, looking for employment, and accomplishing some level of economic independence means that Apple has created a profitable business opportunity that should be capitalized on. Financial freedom entails not only having money but also having the ability to spend it as one sees fit. As a result, these people are potential iPhone buyers in the wings.
India has a strong employment protection program in place, with various laws aimed at protecting employee rights. Such an element works as an opportunity and an obstacles to market entry. On the plus side, establishing a presence in the country will necessitate the corporation’s compliance with all of these laws, and by doing so, Apple will improve its brand name in the market, as more consumers are holding organizations that promote employment discrimination accountable by boycotting their products (Beck, 2018, p.545). In the long run, strong brand image in the Indian market will result in increased smartphone sales. On the negative side, because the laws require employees to be paid a minimum wage, compliance with the legal frameworks will significantly raise the corporation’s wage costs.
India, like Kenya, is continuing to pursue economic reform and liberalization. It means that there are some less barriers to trade that could impede Apple Inc.’s entry into the country and successive smartphone sales (Sundaram, 2019, p.493). During last two decades, the growth of the economy has also shown positive growth trends, demonstrating the economy’s stability and general well-being. This sort of atmosphere is advantageous for the firm’s management in this market. Apple Inc., on the other hand, will have to contend with the state’s wide economic disparities. Given the large economic disparity between rich and poor, India’s economic inequality is enormous. The primary reason for this is a lack of equitable access to technology and job opportunities.
A country’s political environment has a significant impact on economic development and increasing trade competitiveness. Because of its stable political system, economic development in India has been maintained consistently (Sundaram, 2019, p.493). As a result, foreign investors are more confident in investing in the economy, fueling economic growth. India has a well-structured and advanced tax structure, with the administration collecting revenue, sales, and services taxes and local governments collecting all other taxes. This, along with the country’s stable political system, makes it a viable iPhone market.
Technology has a significant impact on product growth. 3G and 4G technology are currently available in India. Furthermore, the nation has one of the world’s strongest and dynamic IT sectors, which promotes continuous IT development, software upgrades, and other technological developments (Sundaram, 2019, p.493). As a result, many people place a high value on modern technology and related technological devices. Because of this, they are prospective consumers to whom Apple Inc. should sell its iPhone product. As a result, entering this marketplace will be reasonably simple.
The Indian smartphone industry is equivalent to that of Kenya in that it is crowded, with fierce competition and shifting market shares. According to Jain (2022), Xiaomi controls the majority of the market, with a 27 percent market share. Samsung comes in second place with 18%, followed by Vivo (17%) and Real Me (16%). Given that none of them can be considered the market’s undeniable dominant force, these organizations have a fairly comparable market share. In such a case, the market’s intensity of competition is quite high.
Brazil’s middle class is quickly increasing, both in population and in financial terms. This demographic is gradually becoming more familiar with present trends and, as a result, is aware of the key market brands selling such items (Rahman, 2021). Many Brazilians consider iPhones to be valuable beyond their smartphone functionality. Aside from being a smartphone device, Brazilians regard iPhones as a luxury item, and thus owning one is more of a fashion statement. Apple Inc. can capitalize on this tendency, as well as the nation’s increasing middle class’s affinity for costly products, to market iPhones to them.
Over the last few years, Brazil has made some legislative changes that should make entrance and incorporation into its market moderately easy for Apple Company. In March 2017, the state passed legislation granting any business operating within its territory the right to decentralize any of its operations (Rahman, 2021). This type of restructuring makes things simpler for Apple Inc. to not only establish operational processes and sell iPhones, but also to develop a stable market position, allowing the company to make inroads into other regional markets.
The country’s growth potential is very high due to its high population and rapid expansion of foreign direct investment. In addition, the country’s central bank has succeeded in controlling the country’s inflation rate as well as reducing the risk of currency devaluation. After all, Brazil’s corporate tax rate is 15% and foreign companies have no incentive to maintain profits domestically (Shaw, 2021). These factors significantly increase the profits from iPhone sales in this market, as low inflation leads to lower product prices and makes the iPhone very affordable. In addition, low corporate taxes combined with limited restrictions on investing some of the profits generated in the country will increase profitability.
The Brazilian administration is very active and is an aspect of the country’s relative political stability. As in Kenya, corruption is a problem in Brazil, and its level is increasing year by year. The situation is very dire, and even when starting a small business in the country, an individual or organization must give up paying money as a bribe to civil servants (Shaw, 2021). Entering the market means that Apple Inc. must fight the rampant corruption that plagues its political territory. Ensuring political support for investment ventures as large as Brazil may demand bribes can be an obstacle. This violates the corporation’s ethical values and standards.
Brazil’s technological infrastructure is comparatively poor in comparison to India’s. Despite this, funds are being invested across Brazil to enhance the efficacy of technology centers (Rahman, 2021). Despite the fact that its current infrastructure is inadequate, the country’s growth opportunities make it a viable option for Apple to establish its operations. Improving the country’s technology capabilities will increase technology absorption and acceptance, a trend that the corporation can capitalize on to enhance smartphone sales in the market.
Unlike in India and Kenya, where there is no dominant business influencing a significant portion of the market, Apple Inc. should be most concerned about Samsung in Brazil. Motorola has a twenty-one percent of market share, while Samsung controls slightly more than forty-five percent of the market. On the plus side, it means that Apple Inc.’s only competitor to be concerned about is Samsung. Given Apple’s competitive edge over Samsung, dealing with the corporation should be relatively simple.
Strategy for Market Entry
Selection and Justification for New Market to Enter
The Brazilian economy is the most appealing of the three potential nations. Apple can sell iPhones to potential domestic customers by leveraging its rapidly growing middle class and reputation for high-priced products. In addition, the domestic legal environment greatly encourages the types of commitments Apple needs to make (Rahman, 2021). In March 2017, the government passed a law granting the right to outsource all activities to companies under its jurisdiction. These reforms will assist Apple Inc. in not only launching and selling the iPhone, but also in establishing a stable position in the marketplace and moving forward in other market segments. Brazil has a corporate tax rate of 15%, so foreign companies have no incentive to keep profits in the country. Low corporate taxes, combined with limited restrictions on investing in some of the profits generated in the country, improve profitability.
Market Entry Strategy
Because the law allows for the outsourcing of functional activities, Brazil serves as the primary entry point for the iPhone in the larger South American markets. As a result, Apple Inc. can open a distribution center in Brazil, and the company can outsource iPhone manufacturing thanks to this specific law. When this occurs, Apple will be able to send the merchandise to Brazil and disburse it not only in Brazil but also in other South American countries. This outsources iPhone manufacturing to a much cheaper location, lowering operating costs and allowing the company to increase profits from selling iPhones (Shaw, 2021). One of Apple Inc.’s strengths is its extensive pool of resources available to its marketers. As previously stated, the tech company has a limited presence in the emerging economies, and thus in emerging markets. This strength can be used to vigorously sell smartphone products not only in the Brazilian market, but also in other South American markets. This presents an opportunity for Apple Inc. to dominate the South American market.
Marketing Mix Framework
Apple should concentrate its efforts in the Brazilian market on smartphone marketing and sales. However, given the wide income and wealth disparities, marketing must target the middle and upper classes. These people live primarily in the country’s metropolitan areas and are not only compatible with costly luxury products, but also have the financial means to make such purchases (Amaral et al., 2020, p.465). Apple Inc. primarily operates physical stores that sell its products. However, in the Brazilian market, you should think about selling your iPhone alongside an authorized seller, particularly in the early setup of operational processes. In Brazil, social media is relatively popular. Not only can the company promote the new iPhone model on various social media platforms, but it can also resolve customer complaints and queries.
Intended Points of Parity and Points of Differentiation
Brazil’s smartphone market is well-established and advanced, as well as price sensitive. As a result, in order to compete effectively and eventually dominate the market with iPhone products, Apple Inc. must highlight its differentiators. To accomplish this, the company must increase the availability of the iPhone brand in the Brazilian marketplace. Through widespread marketing, the firm can convince consumers that the iPhone and its successors are superior to their competitors in terms of functionality and data security (Amaral et al., 2020, p.470). This will increase the mental availability of the iPhone in the Brazilian market. Laws that allow the state to outsource operations make it easier for Apple to outsource manufacturing to existing factories and improve the physical availability of products. In addition, the establishment of local stores and the participation of authorized sellers will increase the availability of products on the market.
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