Soon to embark on their own Indian expansion journey, Apple announced that they would be assembling in the southern state of Karnataka by the end of April. IT Minister, Siddaramaiah said that this could prove to be advantageous to Apple, with Bangalore being India’s technological hub. Apple currently holds a 2% share in the Indian market, 23% lesser than competitors, Samsung. Their attempt to open Apple stores last year was rejected. A diktat states that foreign retailers, as part of the ‘Make in India’ campaign, must source 30% of their products locally.
The campaign, however, has decided to give companies eight years to make up this percentage so that India can attract more foreign companies, creating more jobs. Manufacturing locally could help companies reduce total costs. This would open up the possibility for Apple to lower costs on their products and services. In turn, the large Indian population, which currently does not possess a large number of smartphones would present a vast potential market for Apple.
India’s strategy is clearly an attempt to implement workforce diversity. This strategy will help India widen their markets, allowing for an increase in foreign investment and high-quality products and services within the nation. Creating a good work environment where the workers feel valued, involved and respected will result in a highly satisfied workforce.
This state of high job satisfaction could open up the possibility of more people applying for jobs in India, increasing the productivity of the nation as a whole. Furthermore, cultural intelligence could help increase their knowledge of global markets, business techniques, and other soft skills.
Should Apple successfully implement these OB factors, India could be looking at a bright future ahead.
Sources:
AFP. (2017, February 03). Apple to start building iPhones in India. Retrieved February 05, 2017, from http://www.ctvnews.ca/business/apple-to-start-building-iphones-in-india-1.3270636
[Two sides cutting a metaphorical Apple Briefcase with an Indian backdrop.]. (n.d.). Retrieved February 05, 2017, from http://images.bidnessetc.com/img/960-apple-inc-bites-deeper-into-india-with-record-sales.jpg
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