2. iPhone: A Gem but not
without Controversy
International Marketing Strategy
Prof. Basil Janavaras
Fragiskos Pollakis
Chrysanthi Valianatou
Ourania Xaplanteri Academic year: 2014-
2015
3. “The Jesus phone”
Introduced in 2007
True innovation
Dominant player in the cellphone market
Change of consumers’ perception about smart phones
iPhone 1
5. Short - term problem
The service provider controversy
Ambivalence about the service providers choice in Europe
Criterion of selected countries iTunes Music Stores
presence
France Orange network
Germany T-Mobile
United Kingdom Telef6nica’s 02
Limited European presence
6. Long - term problem
Labor conditions in supplier’s factories
Under-age labor
Excessive working hours
Overcrowded dorms (Foxcton’s factories)
Health problems
Environmental Issues
Inappropriate disposal of wastes
7. Taxation Policy
“Double Irish with a Dutch Sandwich”
Lower taxes
Use of subsidiaries in low tax countries
Potential ethical issues
Government and public’s reactions
Key facts
8. Cause – Effect Relationship
Limited number of service providers
Lack of strong presence in European market
Negative impact on Apple’s image
Environmental violations & labor conditions
Tax relieves & cooperation with suppliers
Immense profits
Minimization of production cost
Competitive prices
9. Strategic Alternatives
Short – term
Market Research
Service providers with strong presence in Europe
New collaborations
With big retail technology stores
Advantages
Bigger profits
Increase market share
Reach a wider audience
Disadvantages
Cost & time
Massive character
Losing its unique identity
10. Strategic Alternatives
Long – term
Enforcement of laws by the government of China
Implementation of a strict working policy preventing:
Under age employment
Long working shifts
Health conditions
Environmental violations
13. Final solution
Careful collaborations with the top players in the market
Focus on Corporate Social Responsibility
Common strict working policy
Monitoring the suppliers
Stop collaboration in case of non-compliance
14. Implementation
Immediate establishment of a separate department
responsible for:
CSR
Improvement of company’s image
Emphasis on Apple’s social sensitive side
Financial resources
Estimated by the annual budget
