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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

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