Apple Inc In Malaysia Economics Essay

This stableness is an of import consideration in these times when it comes to make concern. It is portion of any concern determinations in which a house operate political landscape makes it an ideal stable state for new concern ventures. ( see page )

Malaysia boasts one of south-east Asia ‘s most vivacious economic systems, the fruit of decennaries of industrial growing and political stableness. Its multiethnic, multi-religious society encompasses a bulk Muslim population in most of its provinces and an economically-powerful. ( see page )

The phenomenon of information sharing is normally associated with societal cultural factors beyond information engineering. An apprehension of information sharing across civilizations is still a major challenge and is likely to be more of import as planetary systems are developed. Byars, L. ( 1991 ) In some local civilizations the endurance of extremely competitory organisations is dependent upon holding trade secrets. A really good illustration of this is Malaysia. ( see page )

The engineering used within the Malaysia has improved dramatically this has happened particularly within the information engineering sector with more and more people being trained on how to utilize these kinds of engineering ( see page )

Apple Inc as a successful company in the universe broad market today and the schemes they applied in order to carry on their concern swimmingly. On which the survey inside informations will be based on. SWOT analysis Corporation which is the strength, failing, chance, and menaces. and applied to the jobs confronting Apple Inc, include the Porters five forces ( see page )


Possibly one of the most observations that grabbed my attending in the universe was the phenomenon of the unfastened trade or free trade. The simplest definition of free trade is ; Trade between states without protective imposts duties. It is mostly known that America is the biggest market in the universe. Technology is the female parent of trade. Where there are a high figure of figures in a market, there we see engineering and prosperity.

Life becomes more easy and safer. This creates Tech-Consumptive coevals ; a speedy expression at our recycling pin would proof that. Year after twelvemonth the engineering of the nomadic industry has changed our life. We, for illustration without being wholly cognizant of the societal alteration that happened, became a topic of what the market want. Before, we were the force that lead the market. Now Television commercials, hoardings and media barrage are the 1s own our payroll checks. ( Griffin, 2009 )

Year after twelvemonth the engineering of the nomadic industry has changed our life. We, for illustration without being wholly cognizant of the societal alteration that happened, became a topic of what the market want. Before, we were the force that lead the market.

As I have mentioned before, engineering is the maestro of our life. The universe had become little small town. Time is the impending maestro non the distance any more. This constitute a immense alteration every where we look. My societal dealingss and how it ‘s shaped is wholly different ten old ages ago.

America and Japan were the biggest labs which used to make full the planetary market with that copiousness of innovations. It was G6 so G7 so G8 those are Group of the biggest economic systems in the universe. This tells us that the planetary economic system is hiking so does the person ‘s life alterations within. ( Scholnick,2009 )

If we take Apple Inc company and I phone as a trade good and its general consequence, this would be an eternal survey. Why? The dimensional consequence of it is incalculable. Psychological, societal, and economical effects would or hold shaped coevalss. This bantam charming device shaped lives.

Whereas, Malaysia as an ideal market for this merchandise through Apple company. So the simplest definitions of this assignment is a multi-national company called Global Ventures PLC

In the above state of affairs, Global Venture Plc has chosen to sell the merchandise ( I phone ) .Now we are looking for the right state ( Malaysia ) to place and warrant the most appropriate for spread outing this company.

About Malaysia

Malaysia is located in Southeast Asia, surrounded by Indonesia in the south Thailand in the North, and the Philippines in the E. The state has an country of 127,320 square stat mi ; the part of Malaysia is a larger than the province of New Mexico, the fourth-largest province in the US. The Federation of Malaysia consists of 13 provinces, 11 provinces are situated in Peninsular Malaysia. ( Appendx2 )

It is finishs of the part ‘s cardinal tourer, offering superb scenery, Dense rainforests and first-class the eastern provinces of Sabah, on the island of Borneo, are a safety for tribal traditions and wildlife Although since 1971 it is have benefited from positive favoritism in concern civil service, and instruction. Cultural Chinese continue to keep the wealthiest community and economic power.while Indians are among the poorest and the Malaysia remain the dominant group in political relations. ( BBC 2010 )

Justification of chosen a state ( Malaysia )

My pick of Malaysia as an ideal market is based on many grounds. First, Malaysia has many competitory advantages including a productive work force, low pay rates and a big labour supply. Buyers of merchandises with low purchase monetary value are certain to happen a broad scope of Malayan makers, who are able to give attractive offers and depend on the immense. Second, as in all developed states, the spread outing being of advanced engineering in Malaysia is doing the mean individual to go more and more dependent on it. ( BBC 2010 ) The undermentioned paragraphs see the, political, economic, societal, and technological factors ( PEST ) that impact on foreign concern in Malaysia and measure how these factors can best be managed.

Political suitableness

.Economical suitableness

Social suitableness

Technological suitableness

Politically suited state

Many Asiatic states are politically stable because of the authorities systems found in these states. Examples of these are India, China, Malaysia, Singapore and Taiwan. These states enjoy a high grade of internal peace.

Although Malayan political relations has been comparatively stable, “ the authorities, governing party, has engaged with few offseting forces. However, in 2008 General Election, media ‘s coverage on state ‘s political relations has been perceptibly increased, doing the political relations more transparent to the citizens

Malaysia practises Parliamentary Democracy with Constitutional Monarchy and his Royal Highness is the Paramount Ruler. The Federal Constitution was legislated with the puting up of conditions for this system to be. One of the Conditions of Parliamentary Democracy is the division of the administrative Power into three parts aˆ? legislative, judiciary and administrative or executive. Malaysia is besides a state that practises a system of democracy based on the Federation system. Consequently, all of the provinces have agreed to organize the state of Malaysia. Each province has surrendered portion of its power, such as finance, defense mechanism,

instruction, foreign personal businesss and others, as stated in the Malayan fundamental law, and which is administered by the cardinal authorities. There are affairs that are under the power of the province and each province administers power over those affairs. The Parliament besides serves as the forum for unfavorable judgment and focal point of public sentiment on national personal businesss. ( Hassan, 2009 )

Malaysian ‘s authorities has protected and command the currency and other limitations employed to support themselves against the negative effects of the new planetary economic system, were in topographic point for several old ages. These fiscal controls do hold caused on the value of investings in Malaysia, whereas controls have been established to aim currency for the foreign investings.

Suitable economic

Malaysia is a stable and aggressive economic system in South East Asia. It has a freshly industrialized market economic system and comparatively unfastened state-oriented. The Pacific part has done good despite the reverse of the fiscal crisis. Malaysia has low rising prices and unemployment rates. With a per capital GDP growing rate was 7 % over the last half decennaries. While this growing was driven by growing in the fabrication sector, it helped to take up adult females and Malays into the modern labour market and helped to relieve poorness. The rise in existent GDP has been strong, lifting from M $ 1,932 in 1970 to M $ 15,380 in 2003. ( See the appendix1 ) The economic expanded to go a multi-sector and natural stuffs manufacturer. It has rich natural resources and developments in agribusiness,

One of three states that control the Strait of Malacca, which is an of import international transportation trade plays a big function in it is the largest manufacturer of, palm oil gum elastic and Sn in the universe. Fabrication has a big influence in the economic system. Besides is the largest Muslim banking and fiscal Centre in the universe.

Political and economic stableness have been complemented by the effectual deficiency of the chief natural catastrophes. The geographical location of Malaysia has protected it from volcanic eruptions, typhoons, temblors dearths and drouths. Floods have therefore far merely affected a little portion of the state. ( Economy watch 2010 )


Economic growing demands to be knowing by societal and civilization justness and societal stableness. These things are the rudimentss for sustainable and mostly based development in concern environment. The societal policy in Malaysia is really similar to the preparation of economic and other policies. All policy is developed in the same institutional model and same system. The process of explicating societal policy comprises political, legal, and parliamentary constituents all connected decision-making is restricted by the chief rules of the just growing ( The free library )

While the beginning of history, Malaysia has been a gathering topographic point for a different scope of external faiths and civilizations. As consequence of these external influences, the original incorporate nevertheless great Malay civilization has emerged modern Malaysia represents a alone merger of Malay, Indian and Chinese, traditions, making a pluralistic and multicultural state that has its nature strongly rooted in societal harmoniousness, religion and pride in its hereditary background. With such a affluent cultural tradition, geting the of import accomplishments and cultural cognition in order to make concern in Malaysia is of import ( Blackman.2000 )

Malaysia has been obtained first-class combine between old traditional civilization and new

technological inventions. Whereas Malayan market continues to spread out and turn, it is going progressively helpful for those come ining into concern in Malaysia to be cognizant of the cultural dimensions that shape the cloth of this state. ( Capistrano, 2004 ) .

In general Malaysia is developing state that has devised its clasp attack to the status of socio-economic to growing. This attack has been developed from the late fiftiess to the early 21st century, whereas a figure of betterments have been made to the new societal policy in Malaysia, similar to foregrounding on the development of services and societal as an incorporate portion of the national development. Besides the authorities has proviso of societal services ; and just proviso of services to the countryside. ( Economy Watch2010 )

Furthermore, the Malayan attack to the societal policy and resulted to better the instruction, wellness and has ensured greater employment chances for all people, it has made big advancement with respect to the obliteration of poorness. However, there is ever chance for betterment. Social policy in Malaysia responds and accommodate to new challenges including those posed by globalisation. ( Peter 2009 )


Technology is one of the necessities of the modern universe. Almost every facet of populating these yearss in mostly, dependent upon engineering. Therefore states around the universe are making, planing and bring forthing new engineering every twenty-four hours. Specifically, in the European states the construct of liberalisation has helped a batch in advanced engineering. However, some states in Asia have made better progresss. For illustration, the technological system of Malaysia has undergone dramatic alterations over the old ages.

From overseas invested multinationals, Malaysia ‘s public presentation in high-tech merchandises has improved dramatically such that in 1985 Malaysia ‘s planetary market portion of hello tech merchandises. ( Ratulangi, 2008 )

Malaya is lifting Asiatic economic system draw a bead oning to travel towards technology-driven and hi-tech production-based form of growing and hence retroflex the cognition of the freshly industrializing economic systems ( NIEs ) of Asia. In fact, Malaysia has been considered in the group of states that have the possible to bring forth new engineerings on their ain. The fast technological growing of the NIEs over the past two decennaries has caught the concentration of both developing and developed economic systems coincidently. Malaysia and the NIEs are non merely located in the same part, but to big extent have similar economic governments and trade constructions. In position of that, Malaysia has a strong footing to see explicating its ain technological development scheme based on those in the NIEs with appropriate versions to suit the economic system ‘s uniqueness.This suggests that there is no individual scheme that can vouch successful technological upgrading in Malaysia ( Kurup, 2006 ) .

The company overview

Apple is one of the most established IT brands in the World, it is, industries, markets personal computing machines, nomadic communicating designs and, media devices, , every bit good as applications worldwide. Apple Inc sells its merchandises globally through its retail and on line shops, value-added resellers. Besides it sells package third-party Mac, I phone, I Pod, including accoutrements through retail shops and its online ( Appendix 3 ) The company sells its merchandises to client, mid and little -sized concern, authorities, and originative markets. The company, known as Apple Computer Inc, was founded in 1976 the headquarter in California ( Yahoo finance2010 )

SWOT Analysis of Apple

A SWOT analysis of Apple shows the strengths, A failing, chances and menaces confronting the company

SWOT analysis of Apple – Strengths

Strengths: –

Apple Inc is one of the most successful and extremely valued US Company. It is listed as one of the chief companies in the NASDAQ stock exchange with grosss of more than 60 billion dollars.

Apple Inc is the most constituted and healthy IT cooperation in the universe. It has an outstanding repute for presenting high-tech merchandises for over 35 old ages.

Apple Inc will be able to work the low labor cost in Malaysia by set uping Factories, hence making more occupations and supply preparation for the Malayan people to go professionals in this field.

Malaysia is a middle-Income province ; therefore consumers will afford to purchase the high-tech merchandises supplied by Apple Inc.

Apple Inc supplies a broad scope of High-Tech merchandises runing from Computers, Computer package, Notebooks and Smart phones such as I phone. Gross saless of its notebooks merchandises is besides really strong, and represents a immense part to income for Apple. ( Brain Mass )

Failing: –

Apple is bound to uncover several failings. One illustration, of many, is

Competition from other suppliers such as Microsoft Inc, which provide Computer package merchandises at a sensible monetary value.

Apple Inc will confront competition from already established cooperation that provides High-tech merchandises, as Apple Mac devices are sold at a really high monetary value. Although Malaysia is enormously targeted by the Nipponese investors every bit good as the propinquity in distance ; hence Apple Inc will confront challenges from companies like Sony and Toshiba ( Brain Mass2010 )

Opportunities: –

Apple Inc has many chances in Malaysia, as it will be able to aim the Information engineering market and aid in the growing of smart phones market section

Apple Inc will be able to carry through the go oning growing in demand for nomadic Personal computers

The first-class repute for the company will let it to vie strongly in the Malayan market, as most of its merchandises are extremely valued and respected for its high public presentation.

Menaces: –

One of the chief menaces that will confront Apple will be companies non seeing Apple merchandises as compatible with their package

Apple merchandises in general are higher than other merchandises from companies like HP and Dell which are major rivals in the Computer market.

Besides Apple will confront challenges in relation to cheap merchandises that are manufactured in neighbouring Asiatic states like the Chinese company Acer which merchandises are 1/3 the monetary value of Apple Mac books

The popularity of Apple Mac and iPod are capable to demand, and will be affected if Malaysia ‘s economic Begin to hesitation and demand falls for their merchandises. ( Marketing Teacher2010 )

Porters five forces at Apple Inc: –

This subdivision considers how Porters five forces might be applied to the jobs confronting Apple Inc, including an probe of the menace of replacements from other companies, purchaser power in relation to hi-tech merchandise purchases and supplier power,

Classical economic sciences predicts that competition between companies should drive net incomes to zero. This is partially down to the menace of replacements. For case, Apple Inc has competition from companies like Microsoft and Dell that can supply replacements for their goods. This drives the monetary value of high-tech merchandises down for clients of both companies.

Buyer power has a direct consequence on coercing monetary values down. If Computers and nomadic Personal computers are sold at a really high monetary value in Apple, purchasers will travel to other companies like Dell and HP there are few other big Computer and Computer package makers. This means the market is disciplined ; therefore the companies have a disciplined attack to monetary value puting. Discipline stops them destructing each other in a net income war.

Supplier power is an of import portion of this theoretical account. Apple Inc is the chief provider of I phone and IPod devices ; therefore they will hold the power to enforce the monetary value that they see as suited for that merchandise. However they may confront competition from other companies, which will seek to fabricate a new merchandise with a similar engineering. However Apple will be the exclusive supplier for that merchandise. ( Mega essay 2001 )


To sum it up, Apple Inc company became a mass media channel. Malaya can be the best state for this in assorted ways, with its strong economic strength, supportive authorities policies, educated work force, developed substructure, vivacious concern environment and quality of life has ever been an attractive market for foreign investors. many of which have been covered in this essay. Further surveies can give more thoughts.