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Hewlett-packard case study
Apple value chain analysis
Apple inc.: managing a global supply chainfraser p. johnson, ken mark
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The new chief executive officer, Tim Cook, excelled, earning him the trust of Steve Jobs that in the world of procurement, manufacturing, and logistics. From proposal to retail store, Apple has constructed a closed ecosystem where it controls over every part of the supply chain. Due to its volume—and its occasional callousness—Apple receive huge discounts on spare parts, capacity of manufacturing, and air consignment.
According to the Mike Fawkes, Former supply-chain chief at Hewlett Packard (HPQ), For Apple expertise in operations is a huge asset as same as expertise of innovation of product or a marketing strategy. After the speculation with The Vantage point Capital partners, they bring operational structure of Apple to the new heights.
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During that period, transportation of products would be from sea routes, cheapest option from air freight. At Christmas on the following year, to ensure company’s new product lustrous blue iMacs to be widely available, jobs paid $50 million to buy all holiday air freight space according to the John Martin a Logistic Executive. Apple works on a restricted product line, attract both hip halo and huge volume for the product in the market. They aim to provide consumer the product that actually they doesn’t know they need yet. Elaborating that they make components before the competition will be occurred, when actual the competition prevails in the market, Apple itself earlier seize the customers, it’s a riskier strategic operations followed by the Apple, if company were not excellent in anticipating the market needs. To make supply chain, Apple can monitor sales on retail store by the hour if it …show more content…
Having complete agreements to form an agriculture joint venture named as , Noble Agri Limited (“Noble Agri”).it became an international origination platform for COFCO, creating full integrated supply chain, downstream handling and capabilities of distribution consistentency with the COFCO strategy. According to the Chairman of COFCO, Frank Ning, The value and significant energy created by the strategic investors creating incremental trade volumes from COFCO. Noble Agri’s management system of supply chains and logistics, origination capabilities complements its logistics, distribution and processing systems network in China.
As the wording of Yusuf Alireza , Noble group CEO, Cofco and Noble Agri Ltd. are dedicated for the unremitting triumph and growth ,the vision of company is to bringing the company into a leading global agricultural firm with the sharing the vision with the stakeholders. As one of the fastest growing economies, China has devoted herself into the economic globalisation process. And economic globalisation has brought several opportunities to China¡¯s market. First, foreign capital
In 1978, China was positioned 32nd on the planet in export volume, yet it had multiplied its reality exchange and got thirteenth biggest exporter in 1989. Between 1978 and 1990, the normal yearly rate of exchange extension was over 15 percent,[11] and a high rate of development proceeded for the one decade from now. In 1978 its exported on the in the world of the overall industry was insignificant, in 1998 regardless it had short of what 2%, however by 2010, it had a world piece of the overall industry of 10.4% as stated by the World Trade Organization (WTO), with stock fare offers of more than $1.5 trillion, the most astounding in the world.
China’s large population and untapped market potential has made it an ideal paradise for investors and multinational corporations to invest into by trying to break into the market in different ways, mostly through joint ventures or research and development centers. Now, China has become the largest foreign direct investor for the past ten years as encouraged by the Chinese government. China has expanded into other markets, most notably in Sudan in which China has built oil refineries while helping to indirectly start an economic boom in the politically unstable country for which China has been called out for. Nonetheless, China has allowed more of its domestic companies to acquire other companies. China’s state food and exports enterprise China National Cereals, Oils and Foodstuffs Corporation (COFCO), the largest grain, edible oil and food conglomerate, has recently bought 4.9% of the stakes in the American food corporation Smithfield Foods, Inc. in 2008 and more recently acquired Maverick Foods Co. Ltd, a joint venture between the American Smithfield Foods, Inc. and the Belgian Artel Group. Stemming from its own economic growth and trajectory as well as from the changing international economic climate, COFCO’s buying of stakes in Smithfield and acquiring Smithfield’s joint venture Maverick Foods shows China’s rising status as a growing economic power with its own capital and resources.
Apple has garnered a competitive advantage through all aspects of the supply chain. On the production front, Apple has made many high-priced
Apple Inc. is one of the world’s most successful companies when it comes to supply chain management. In its early years the company struggled forecasting demand and managing inventory causing many issues in supply chain including stock-outs. As years went on Apple began investing heavily in their supply chain, controlling many aspects such as overseas production, assembly and logistics. While Apple still faces some challenges including things such as technology, competition, global market share, and leadership, it is still ranked as a master company in supply chain according to Gartner Inc, making a great company to invest in.
Marketing strategies are based on the 4 P’s or Product, Price, Promotion and Place or Distribution Channel. This section will briefly look into the Product and Pricing strategy of Apple and will illustrate various factors how it has been capable of sustaining competitive advantages in times of extreme competition.
Coolcargo and Frito-Lay implemented technical solutions for agricultural-products transportation following customers’ requirements. Coolcargo developed a transport-system for maintain fresh asparagus at controlled temperature from production site in Thailand to final destination in UK (UOL, 2013). Frito-Lay developed a global agile supply-chain for manufacturing and distributing salty-snacks to end-customers that allows processing agricultural-products in less than 24 hours for flavor guarantee (PepsiCo, 2013).
From 1980 to 1996, Apple’s competitive range in the PC industry was rocky. Although Apples products were unique and well built, they were overpriced compared to competing products from IBM and others. As competitor prices dropped, Apple prices stayed the same and the company saw a decline in sales as customers opted to purchase from its competitors. John Sculley, former CEO of Apple, took many steps to improve the company’s competitive advantage. One of those steps was to compete with price by producing a low-cost computers that appealed to a mass-market. The second step was to form an alliance with rivals IBM and Novel in order to create new operating systems and applications...
These products, built upon incredible foresight and attention to detail, carried tremendous customer loyalty and high margins. Apple management must bridge the perceived innovation gap with some sort of product breakthrough. Otherwise, it is reasonable for the company to accept lower Street expectations built upon the premise that while the company remains an exceptional production, distribution and branded business, the days of unparalleled enterprising innovation and leadership may be ebbing. The best things to do, by Cook, would be to have a VP that replace the innovation brought by Jobs and be in charge only on innovation.
Cutting costs by competitors is the most logical way for competitors to be more competitive in the market. By cutting costs, there are more profits to be made and to gain market share by offering lower cost substitute products. The industry is flooded by competition, but no other competitor of Apple really focuses on creating great technical upport or brand loyalty. (Elliot, 2014)Apple’s primary focus is to develop innovative products and create a unique product that consumers can depend on the being the most highly anticipated technological device while offering great service and support for these new products. Apple uses business model innovation which introduces new products that are compatible with each other such as iTunes and the iPhone or ipod. This has proven to be a very effective business model and competitors are trying to replicate the same model to their advantage. (Jakab, 2015) By being an innovator and first mover on this type of technology, it gave Apple the competitive advantage in the market. In order for competitors to be more effective in the industry, they must attempt to gain customer loyalty and offer a simliar business strategy to that of Apple if they are to be the industry
In almost every part of the world Apple and at least one of their products is known. The Apple brand started in the 1970s. Three men founded the organization in 1976, to produce a computer that every citizen could use personally (Sohail, 2010). The first item released was the Apple 1 personal computer kit made by Steve Wozniak (Sohail, 2010). Through the 70s, Apple concentrated on developing storing technologies such as the floppy disk and the use of color, graphics, and spreadsheets used for business (Sohail, 2010). Apple was about to have their first major product release with a million dollar ad campaign. This was the release of the Macintosh personal computer, which also led to Apple’s great reputation (Sohail, 2010).
Apple Inc is a multinational organization in America and has its headquarters in California. The organization specializes in the design as well as development of consumer electronics including: computer software 's, and also personal computers. The organization has for long been offering a broad range of communication mobile communication as well as its own company software’s. The organization has quite an upright name in the business world. For a long period it has been producing quality product and their designers really bring out uniqueness in their products (Linzmayer, 2004). Apple Inc has established itself as being the world’s leader in innovation. Thus according to statistics; it is classified as being the fourth most valuable technology
It was Steve Jobs who made Apple leave the garage and make leaps and bounds in the world of technology. Steve Wozniak made the first prototype, but it was Jobs who “saw the potential” in his computer and persuaded Wozniak to sell it (Peterson 106). Even though that first computer saw very little success, Jobs knew that Apple had potential and so released the Apple II. From the beginning Jobs knew what the consumers wanted, and where computers were going to take the world; he had a vision of the opportunities in technology and saw that Apple needed to move in a different direction. In 1984, one year before he left, Jobs finished the Macintosh computer system. He was pushed from his original computer design project, “the Lisa”, and then raced to release the Mac first, but the Lisa was released to the public first. Although the Lisa came out first, the Mac “[became] synonymous with Apple, mark[ing] a…revolution in…personal computing,” (Peterson 106).
Steve Jobs one of the founding fathers of Apple Inc used strategic planning to his advantage by making Apple’s mission a simple one- bringing easy to use computers to the general market, revolutionizing the computer market. In 2007, after thirty years, the organization changed its name from Apple Computer to Apple Inc., this was a significant move because the organization became more independent, and it was no longer known as a vendor to Macintosh personal computer line (Yoffie & Slind, 2008). This strategic move paid off; a year and half later, Apple Inc.’s third quarter net profit of $1.07 billion on a $7.46 billion in revenue (Yoffie & Slind, 2008). SWOT Analysis of Apple, Inc. Strengths (Competitive Advantage)
Apple has made reasonable management of its human and material resources since its innovational approach demands effective strategic allocation of its resources to the development and utilization of its productive resources to support its innovative investment strategies. Effective strategic control brings power to Apple’s decision-makers to allocate its resources to confront the technological, market, and competitive uncertainties which are inherent in the innovation
is yet to reach its maximum potential. Truly a unique entity in its accomplishments and organization, apple through the conviction and leadership of Steve Jobs its founder and then CEO; have pioneered the revolution of mobile technology. When it comes to strength, apple Inc, has a great marketing team with great marketing and advertisement capabilities, strong brand awareness, a strong and extensive distribution channel, and most of all a vertical integration and the most obvious which is customer loyalty. With the acquisition of valuable companies such as Beats, WhatsApp, mobile payment systems with the IPhone 6, wearable gadgets like the IWatch, apple uses these opportunities to satisfy its loyal