Apple Value chain analysis

Value chain investigation gives a strategy instrument that is utilized to break down an association's inward exercises with the objective of perceiving the exercises which are highly valuable to the association and the ones which could be enhanced to give an upper hand to the association. Thus, generally, by conducting a value chain analysis looking at the internal activities of an organization, it helps reveal where the organization’s competitive advantage of disadvantage lies. Some firms may compete through the differentiation advantage which others try to compete via cost advantage. However, despite the competition strategy applied, each firm tries its level best to perform its activities better than its competitors while in the case of cost differentiation, firms make an effort to conduct their activities at a lower cost than their rivals (Jurevicius, 2013).

This report will provide an analysis of the value chain of Apple Company. is “Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings. ” Apple’s mission statement is “Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store and is defining the future of mobile media and computing devices with iPad" (Johnson et al. The company values include; • The company believes it’s the company’s duty to create excellent products • Apple believes in simplicity and not complexity • The organization trusts it needs to control all technologies in its industry • Apple believes is collaboration and cross-pollination of its groups allowing high levels of innovation (Johnson et al.

• Higher corporate taxation has made income inequality a major political issue affecting organizations Economic factors • Increased labor costs in nations like China get rid of the advantage of cost in Apple and other companies in the technology industry • Stagnating middle-class incomes could lead to a shrink of the potential market for higher-consumer products such as smartphones and computers. • Increased exchange rates due to the strong U. S dollar are a threat for Apple Inc. and other companies in the technological industry. • Higher growth of developing countries presents an opportunity for companies in the technological industry (Pratap, 2017). 0 Apple Inc. Supply Chain Apple Inc. happens to be extra famous for innovation and design. However, a small number of people know the fact that the manner in which Apple Inc.

, handles inventory is also another contributing factor to its success. , Supply Chain Planning happens to be the greatest demonstration of New Product Development Process (NPDP). It provides an integration of almost all of the works under Supply Chain Management (SCM) such as marketing and R&D. Below is a graphic demonstration of the Supply Chain Planning process of Apple Inc. , which shows how Apple is unique in making pre-payments to some suppliers with the aim of securing strategic raw materials (SupplyChainOpz, 2013). Figure 1: Apple Inc. has been putting to practice a modern "agile supply chain strategy" that centers on being responsive and adaptable to the requirements of clients. The organization fences the danger of lack of supply and disturbance by pooling stock and additionally other limit assets.

The dexterity of Apple enables the organization to be receptive to the changing, various and flighty client requests toward the front while in the meantime limiting the back end dangers of supply interruption (Hettiarachchi, 2016). Below is the graphic representation of Apple Inc. ’s supply chain strategy. Moreover, producing hearty acquisition exercises additionally generates value for Apple as it is subject to few sole providers which prompt the diminishment of the bargaining power of suppliers. With regards to the manufacturing and production division of Apple Inc. , the firm does not have any assembling offices which advance the creation of equipment for its item. Rather, the organization vigorously depends on the outsourcing of the assembling offices to Chinese enterprises which happen to be extremely negative to Apple Inc.

over the long haul (Dudovskiy, 2018). To enhance its marketing strategies, Apple uses several strategies. • Apple has developed marketing websites which focus on nothing else but Apple’s products and services • In terms of advertising, Apple relies on product replacement and also the buzz created by positive reviews in the media (Yeung, 2017). Apple Inc. has been using CRM in its customer service departments for almost a decade. This ranges from sending emails to clients who have previously used their in-store services to focusing on assessing their customer’s feelings when talking to staff from Apple Inc. With its initiative in the tech business, Apple is an awesome illustration when it comes to addressing the 10 operations management decisions (Rowland, 2017). Through the OM decision, Apple ensures to design excellent goods and services, enhance quality management, enhance HRM strategies that incorporate help to expand workforce limit with regards to item advancement and plan, develop an excellent location strategy, enhance job designing and human resource based on the emphasis of Steve Jobs, enhance SCM automation of processes and regular monitoring of suppliers, effectively manage inventory and ensure a dedicated maintenance team to enhance operations management (Rowland, 2017).

0 Apple’s use of technology In the tech industry, technology is the top success factor that tends to influence the success of any company in that industry and Apple Inc. is no exception. Technology is the leading driving force of Apple success. • The retail strategy of Apple is also one of its strengths as it allows the company to acknowledge the importance of interacting with its customers. • Digital asset management within the company helps the company build a friendly environment and thus it’s a strength for the company. • Effective innovative process Weaknesses. • The focus on protective strategy within the company rather than focusing more on innovation is considered a weakness for the company • The changing of executives over and over is also another weakness for Apple Inc.

• Sales restricted particularly to top of the line market is a shortcoming of Apple Opportunities • Apple Inc. • To have the capacity to be defensive of the organization's image, Apple needs to ceaselessly put resources into the organization's upper hand in creativity and marketing. • Apple has to continually invest in research and development to be able to stay ahead of its competitors • Apple could diversify their product line by enhancing their existing products to maximize the value as well as the life of their products. • Apple Inc. could also characterize and achieve the client base all the more comprehensively and profoundly by extending its distribution chain. Conclusion In conclusion, Apple is one of the greatest corporations in America with the largest and best supply chain worldwide.