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
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.
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.
With Apple the Growth has been substantial and it can be stated that the Products have reached a maturity stage and hence there is a chance of decline. This has also been evidenced to certain extent as Samsung has taken over as the market leader in the mobile phone segment. The emergence of cheaper brands like Lenovo etc has also been a challenge for IT products of Apple. However it is also true that Apple has always focussed on consumer trends and demands and thus has been capable of avoiding the decline stages. Further market development and diversification strategies have been suitably implemented
I learned that Apple is a juggernaut when it comes to their technological products and marketing goals. Apple focuses on the needs of customer’s light years ahead of their competition and even before most consumers have realized they want Apple’s products. Through their innovative marketing involving social media, word of mouth, Apple Stores they have convinced consumers about the high value of their product even lending to the formation of a “Mac cult” for its diehard fans. The way ahead for Apple is not to lose sight of its brand loyalty and continue to service the customers and entice them with the brand’s prestige. Even with the death of Steve Jobs, I believe Apple forge ahead to differentiate itself from the markets they are in.
their customers are liking. In this situation Apple Inc. is very prepared to supply their customers.
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.
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% :
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
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
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.
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
It is quite obvious from the case that Apple is facing many obstacles. It has way more competitors today than it had two or three decades back. Part of it has to with the highly globalized environment that companies are operating in these days. Another major obstacle is the technological environment which is rapidly changing compared to the one that Apple experienced when it first emerged on the global scene. But the most important of it all seems to be a mental thing. It appears that Apple, over a period of time, developed a rigid mental model that related success of Apple with sheer innovation. This same mental model has lead to demise of many companies in the past, Xerox Corporation being the prime example of that.
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.
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.