Apple 's Supply Chain Is A Huge Reason For Its Success

1539 WordsAug 19, 20157 Pages
Apple’s supply chain is a huge reason for its success. However, just because they’re prospering now, it doesn’t mean that they can just sit back and rest on their laurels. There may be certain competitors or market forces that come into play in the future which will force Apple to either adapt their ways of doing business or get left behind. High tech industries tend to be very volatile. Doing market research slows down the actual release of their products and could be detrimental depending on how fast other companies catch up to their technology or how consumers’ demands change. Just because the iPhone is very popular now, that doesn’t mean that it will stay that way. A competitor may release something that consumers like more and…show more content…
Apple has also been criticized over working conditions in its suppliers’ factories and warehouses. These Chinese factories subject their employees to tough working conditions: life in dormitories, 12-hour shifts 6 days a week, and low pay. Although Apple has their own supplier code of conduct, which has clear policies governing abusive practices, workers still complain of being unfairly treated. If suppliers don’t adhere to Apple’s policies, Apple may be forced to give up the incredible speed and flexibility that they gain by having these gigantic Chinese warehouses and look elsewhere, whether at home or somewhere else abroad. A downturn in the global economy may also effect Apple’s supply chain. If economic costs to transport goods overseas rise, it will make it less cost-effective to have manufacturing plants overseas. Apple may want to consider bringing some of these manufacturing jobs back home. Additionally, changes in international trade agreements may affect Apple’s overseas operations. According to the case, Apple invests in programs to enhance reseller sales by placing high-quality Apple fixtures, merchandising materials, and other resources within selected third-party reseller locations. A challenge may arise if some resellers begin to distribute products from competing manufacturers. This may result in Apple altering its supply chain in an
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