INTRODUCTION In 1996, Apple was a struggling company that had lost more than 70% of its market capitalization in the past decade. Apple’s sales had fell dramatically and their new personal computers weren’t particularly popular with consumers. The return of Steve Jobs to the company was a turning point for Apple and initiated a new era for the firm. With the launch of innovative products such as the iPod, iPhone and iPad, Apple became the biggest brand in the world. Now it remained to be seen if Tim Cook would be able to continue to develop new products and maintain Apple’s success. PROBLEM STATEMENT ANALYSIS 1) Review Apple’s supply chain for the iPhone. What differences set it apart from its competitors? The supply chain …show more content…
Apple has several key advantages in how it manages its supply chain operations. First by buying key components from suppliers in advance they ensure the steady supply of key parts. This risk is also countered by signing exclusivity agreements with some suppliers. In addition, these exclusivity agreements give them an advantage over their competitors who sometimes had to wait for key components due to the large demand from Apple. Another key advantage is that Apple maintains a close relationship with suppliers by working with them to update manufacturing processes and technology. 3) What are the challenges that Apple faces in the future, and what are the implications for its supply chain? In the case of the supply chain, Apple needs to maintain control over suppliers like it has been doing. The increasing competition form Samsung could affect the ability to obtain those exclusivity agreements. Apple faces several challenges, first they need to prove that they are capable
3. What are the major obstacles and conceptual blocks that face Apple right now? What do employees need to watch out for?
Sales - Apple has a specific functional area based on sales. The sales department of a business handles how the products will be sold and helping customers find a suitable product for their needs. They organise sales promotions (or advertising), respond to customer enquiries about their products, and negotiate discounts for customers; which enhances customer satisfaction and keeping customer records up to date. E.g. Apple found that distributing their phones to sell at other shops would broaden their market and create a lot of word of mouth which would be essential to the growth of the business. The shops they distribute the phones to always try to find ways to discount their customers which always creates customer satisfaction.
and pricing strategies. Apple nested the concept of the “digital hub” where Mac could be the
1. Specify the nature, structure, and types of products or services of Apple, and identify two (2) key factors in the organization’s external environment that can affect its success. Provide explanation to support the rationale.
They could leverage opportunities by being able to maintain their devoted customers and offer to them discounts or special promotions for the products. This would attract other potential customers. The potential damage may occur if Apple is not able to stay in the competition or cannot innovate; they are threatened if Google’s Android is advancing faster and faster because people like to stay in touch with the technology and would choose the best product in the market.
Globalization has also had a significant impact on Apple's supply chain. The company earns high profits because it is able to produce its products at a low price and then sell them at a high price (Chakrabotty, 2012). In addition, the company has noted that it assembles its products in China because all of the components are made there this in addition to the low cost of assembly labor. Apple facilitates this by working with logistics suppliers like FedEx who can quickly move finished goods around the world via a number of hubs. All of Apple's products, for example, arrived in the United States in Oakland, California and from there make their way to the customer.
their customers are liking. In this situation Apple Inc. is very prepared to supply their customers.
Question 1/ Analyze the microenvironment and drivers of changes of the PC industry. What are the opportunities and threats facing Apple, Inc. (PESTEL analysis, “Uncertainty/Impact” drivers’ analysis and Scenario Planning)? 20% :
Imagine a world without Apple, without iPods, without Macs; in the world we live in today that seems almost impossible, but Apple did not get to where it stands today overnight, the company has had its share of troubles. Apple Computers was founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne; together they donned the generation of affordable personal computers and was the first step in the advancement of the major corporation known today as Apple Inc. Apple Inc. has become a major competitor in sales despite being close to bankrupt many times because of their technological advancement, knowledge of the consumer, and the development of a strong user interface. Throughout the course of Apple’s struggle the corporation has remained persistent in the advancement of technology as we know it today.
Global supply chain management is a complex business function that requires the company can manage multiple supply chain partners around the world. It is easy to identify that global supply chains can have more opportunities to meet specific challenges and risks comparing with domestic supply chains, such as culture shocks with suppliers and longer delivery time. Thus, the aim of this report is to analyse some global supply chain risks by using Apple Inc. as a case study. In the first part of this report, Apple’s supply chain will be break down into several parts and a potential risk analysis will be allocated for each part. Then, the degree of the circularity and some suggestions for Apple to improve its supply network presence will be provided.
Apple has been on the cutting edge of technology for many year. However, their leading competitor Samsung has begun to close the gap. Apple has several major and minor issues that should be addressed in order to corner the market and pull ahead of their competitors. In the past, Apple has been able to generate a buzz with their revolutionary products and top of the line technologies. However, in the past few years , their lack of product innovation has caused a drop in the companies popularity. Apple needs to reinvigorate their imagine in the eye of the public and improve their business strategy. Outlined below are several of the major and minor issues facing the Apple corporation, as well as recommendations to help the corporation regain its share of the market.
As mentioned earlier, Apple’s supply chain relies on third party suppliers and outsourcing to produce their devices. This strategy can become extremely risky in satisfying demand when resources are limited to one supplier, as seen in the company’s recent failing in meeting demand for the
Apple’s Retail Strategy: Location plays a significant role in this. The fact that they are in malls helps because consumers are already in shopping mode. The fact that consumers can go in and get support or repairs for their products and then get some other shopping.
Another one of Apple's strengths is the way that it sources its production facilities. Apple's entire supply chain has been rated as the top supply chain in the world by Gartner's (Wailgum, 2011). Apple was given a top award in the resilience category by overcoming such obstacles such as the Japanese earthquake without any major disruptions to their supply chain or
However, since Apple's is so heavily dependent on its consumer bases and customer loyalty, its brand image must be protected at all times. If Apple lost any of its brand value from a consumer perspective then they could lose considerable market share. However, Apple has outsourced their production operations to strategic partnerships overseas to companies in Asia; the most notable one