1. Apple Business model and corporate social responsibility 1.1 Business model involves the relation of the business’ strategy, organization and the revenue streams (Lazonick, Mazzucato & Tulum, 2013, p.250). The elements included are products/service offering, customers, operations, infrastructure, costs, competitive advantage and input/transformation/output (Stokes, Wilson &Mador, 2010, p 323) digitalbusinessmodelguru.com Key partnerships: All the elements, device layout, collection activities that form part of Apple’ core products derive from other nations that USA alone (Mitchell, 2014, p17).These Infrastructure constitute Apple Inc. partners network for their supply chain.These include: cellular service provider, app stores …show more content…
It is characterized with an internal expertise to design software and hardware as well as an inside consultation. The value is inherent in and represented throughout the cultural teamwork of the labor force; it is a blend of brilliant conceptual control, managerial, technical and scientific skills (Apple Inc. 2015, Micthell, 2014, Cojoracu, 2014 p124). Cost structure: the low cost production and assemblage of components in Asia mix with premium product marketing strategy enables Apple Inc. to acquire control over their supply chain and decreasing the costs (Montgomerie& Roscoe, 2013, 293). Revenue streams: The system used is a lock in whereby when clients purchase one products it is easily for them to use the other line of Apple’ products. This feat has made them stuck because if they switch to other brands they may lose certain application. This system enables Apple Inc. to generate great sale of goods. They have built a brand loyalty that customer are always willing to purchase the products before it even launch. sale of products, media sale/licensing, rental and subscription fees Channels: Apple.com, Apple retail stores, other retailers Customer segment: They target to mostly everyone, it is a mass market, multi sided platforms. Customer relationship: self-service,
Apple is also trying to act socially responsible in the way in which it operates. The company has been making products with durable batteries so that they do not run obsolete. In so doing the company works towards an environmental-friendly business environment. It is sensitive to the need for protecting and conserving the
Apple is using different business strategy that all employees and management work together in the creation of their products and services while Apples main on customer relationship management. Apple Inc. uses various types of internet business models like Business to Business e-commerce is used in the selling of computers which help operate proficiency in other businesses. Business to Consumer e-commerce model is the selling of iPods, computer, iTunes, iMac and other products to different individuals rather than businesses. Other Business to Government e-commerce model is the process of selling of any Apple products to government operated organizations, Apple (2012).
Apple Incorporation is one of the largest organizations dealing into Information Technology. Apple has a host of products ranging from Laptops, Desktops, Mobile Phones and Multimedia Devices. The company has been extremely innovative in the field of multimedia and it owes it success to one of the greatest innovators, Steve Jobs. The company has always believed in innovation and that is the major reason why it has been so successful in the mobile phone segment. In recent years Apple is second only to Samsung in the Global Mobile Phone industry. However the operations have been largely based in the United States and in times of recession any organization needs to focus on economies of scale and thus focus on growth
Apple has a vertically integrated business model, meaning that they are involved in nearly every step of the production process for Apple products. The hardware they produce can be accompanied by a variety of Apple brand accessory components consumers may wish to use with their Apple device. The most popular Apple devices include iPod, iPhone, iPad, MacBook and AppleTV. Apple products run on their own unique operating system, which sets them apart in the industry from other personal
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.
Title: Apple Inc., and their success with Sustainability, Ethics, Leadership, Corporate Social Responsibility and Triple Bottom Line reporting and Globalization.
Business models have a huge impact on how an organizations operate. It is crucial that an organization chose a business model before inception in order to succeed. Basically, business models have become the new basis of competition, replacing product features and benefits as the playing field on which companies emerge as dominant or laggards (Plantes, 2013).
Apple's entire supply chain has been rated as the top supply chain in the world by Gartner's (Wailgum, 2011). Apple was one of the top companies rated in the resilience category by overcoming such hurdles as the Japanese earthquake without any major disruptions. Other categories that the supply chains were critiqued under included speed, agility, efficiency, responsiveness, and innovation. Apple's entire production operation is outsourced to the Asian Pacific and the company manufactures their goods through strategic partners who are some of the best electronics manufactures in the world.
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 Inc. is a company which designs, manufactures and sells PCs, digital music players, smartphones and other related products. The company was established in 1977 in California, US (Apple, 2014). According to Apple’s global supply network structure, the raw materials are mainly from US, Europe, China and other Asian countries. Next, all these materials will be sent to an assembly centre in China. After that, there will be two moving directions of these products. One way is to direct deliver products to customers who have already ordered products online through UPS or FedEx; the other rest products will be arranged in Apple’s warehouse in California. Once Apple stores and other retailers need
By making their products differentiated from the competition, Apple can establish their own price. Apple believes that people will pay some more money if they know that what they are buying is better and more reliable. That is also the reason why Apple sells the same products all over the world, making no selection or differentiation depending on where the market takes place. The high costs of Apple’s products are the one of the reasons why Apple Inc. preferred to be
The social psychologist Kurt Lewin (1890-1947), once wrote: “There is nothing as practical as a good theory”. According to this saying we tend to consider theory very important and that it can be helpful to guide us on the correct way. This doesn’t state that practice is not important as well. Therefore using a good balance between theory and practice can help to save cost and time.
In table 1, is the summarize of the entire reading material one and two market entities. The goods entity is the core product of Apple mobile markets is iPhone while in tablet markets is iPad. In services entity, Apple offer operating codename Leopard and they also provide customers services and warranty for their product. While for other such as Telcos companies; Digi, Maxis, Celcom they offer data plan as act as a Apple product reseller.
Apple is known all over the world to provide excellence, when it comes to provision of its quality services and products with effectiveness in the implementation and design of their merchandise with products of high quality such as Mobile phones, Computers and Music softwares (Apple, 2015). The core business function of the company is to manufacture quality products since it is mainly a consumer company as most of its profits are derived from the sale of its hardware products. Their sales are generally from all over the world as the company is global and their products are considered to be in the high end of the market thus, high consumer product prices due to the excellent quality. Many of the manufacturing of Apple’s products is done overseas with over 600 locations in Asia handling the manufacturing of these products, and from these numbers, those found in Mainland China are about 331 locations (Supplier List 2013, 2013). Since most of the manufacturing is outsourced, this means that Apple is able to lower their costs of production significantly by reducing costs of labor as labor in China is quite cheap. From a report survey given by the University of Manchester which estimated that cost of assembling iPhones was quite low in China which led to a significant reduction of the price to about 47% for each iPhone as compared to the relative cost of assembly in the United States. With this key strategic move of lowering costs of
As an evolving technology company, Apple is one of the most successful companies in history. In today’s society, we cannot live without Apple products such as the Pad or IPhone. Apple 's success has come at a high cost with regards to safety to the workers of Foxconn, a supplier which makes products for Apple and plenty of other tech giants. As a result, some workers have committed suicide and many riots and fights have broken out.