Outsourcing and importing products to maximize profits
One global strategy that works well for Apple is foreign outsourcing and importing its products. This foreign manufacturing provides an opportunity for Apple to cut production cost of its very profitable product line and sell them at prices that it charges rather than astronomical prices. This allows it to break into various world markets where people are willing to pay the price they charge. Is this strategy works for other multinationals everywhere in the world?
Manufacturing cost especially labor cost in China and everywhere else in the Southeast Asia are comparatively low for many multinational companies. A rise in labor cost in the region have been experiencing lately.
Even with lower production cost one big issue for the multinational companies is the steady advances made by the competition. Manufacturing taking place in China and the Southeast Asia are being copied by other multinationals including Samsung. They too can produce cheaper and stylish products with a faster speed and volume.
Still companies spent 2-3 years to develop and get a new product out into the market. This is long time for newer technology hungry customers and multinational corporations are trying to find ways to cut down the lag time between development and production.
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