Apple Inc Supply Chain.edited

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Apple Inc. Supply Chain Management Students Name Course Name University Instructor Date

Executive Summary The case study by Fraser Johnson Delves into the analysis of the global supply chain of the Apple company under the initiatives of Chief Executive Officer Tim Cook in enhancing product differentiation to guarantee market dominance. It can, therefore, be identified that through sustainable practises, an increase in innovation, and vertical integration, the company has been able to increase overall dominance, although consistency in capacity building in terms of human Capital Management will be vital in mitigating aspects such as extensive competition. Problems identification The first issue emanates from the new competitors in the smartphone industry because of the industry maturity, thus posing a threat to the dominance of Apple Inc.—products such as the iPhone. Additionally, there is the issue of aligning the global supply chain to the Apple company's strategic objectives, which will also be vital in the evolution of the company's business model. Apple's Strategy and the Importance of iPhone Apple's challenges The Apple strategy Incorporates product differentiation through the focus on providing high-quality products based on market preferences(Fraser, 2020). The Apple company differentiation is therefore based on a focus on innovation while also focusing on having optimal control of the global supply chain. Subsequently, The Strategy also revolves around securing capacity from Apple suppliers, which was integral in ensuring that the company had extensive control mechanisms in the production process. While also developing Technologies as part of their differentiation strategy in the smartphone market. The iPhone is significantly important to the Apple company because of the inherent potential revenue Occasioned by the extensive profit margins it is able to provide.

Subsequently, the Apple company integrates vertical integration as part of the company's Strategy to enhance internal competitive advantages. The company, therefore, intended to innovate and produce iPhone and smartphone products internally. The vertical integration also incorporated small company acquisitions and the hiring of engineers from the best suppliers to consolidate innovation and production of iPhone products internally. Subsequently, fostering sustainability of their products and ensuring consistent premium retail experiences for the target consumers are also part of the strategies implemented by Apple company. Having subsequent control of the global supply chain is also critical to the Apple company strategy towards having enhanced control of the market. The challenges The first challenge faced by the Apple company is sustainability-related issues from subcontractors(Fraser, 2020). On the other hand, there is also the major challenge of the global supply chain complexity. The company has several suppliers and subcontractors in countries such as China. It, therefore, creates challenges in the assembly of the product and has a subsequent impact on the eventual product pricing. Despite constant innovation, the company also faces the challenge of dependence on the iPhone smartphone to make a return on investment. Nevertheless, with the maturity of the smartphone market, there is a significant increase in competition, which is a threat to the dominance of the company. The competitive advantages based on the supply chain the first aspect is coordination and control that the Apple management is able to integrate into their global supply chain. Through vertical integration, the company has been able to enhance control and coordination of the suppliers and management of human capital in the supply chain. The control has extended from the assembly plants in their subcontracting destinations in China and the product development in the United States. It is a

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competitive advantage because it enables real-time sharing of data and also a Competitive advantage based on a guarantee of centralization of accountability. The different competitive advantages are intended to ensure that there is market dominance and product differentiation while also increasing the efficiency of the distribution of the products. Subsequently, one of the competitive advantages is their procurement strategy through vertical integration. It is vital to note that previously, the company had close to 200 suppliers in the global supply chain(Fraser, 2020). To this effect, the first element is the analysis of capacity in the supply chain. Therefore, before choosing A supplier, there are extensive negotiations in the analysis of the supplier capabilities, which help in understanding the company's demand and overall procurement capacity. It, therefore, helps the iPhone product procurements to meet deadlines and also meet quality and innovative dynamics, which are in line with the Apple company differentiation strategy in the smartphone market. Vertical integration in the supply chain is also one of the competitive advantages where the company has ensured that it quickly acquires other small companies to increase its market share and also gain a grip on the overall supply chain dynamics. A case in point is that there is the implementation of the cook doctrine, where the primary technologies are analyzed, which is moving away from the originally established off-the-shelf technology development of the iPhone components. There has also been the incorporation of the Intel smartphone services, where there has been the extensive development of modem business and services. There is also an extensive collaboration with other companies, such as the Samsung Group, which supplied the display, and the Sony Corporation, which owns primary technologies but supplies different aspects to the company(Fraser, 2020). The different suppliers help the organization to maintain quality and enhance capacity to meet consumer demand.

There is also a significant focus on sustainability, which is one of the competitive advantages of the Apple corporation. The global supply chain is intended to enhance quality controls and ethical supply of materials where there is compliance with social standards and environmental standards in the sourcing of materials. There is also the subsequent utilization of recycled materials in the global supply chain, which is one of the critical determinants of how the materials are utilized. The different sustainability practises implemented by the company can be considered as part of the competitive advantages implemented by the organization. To this effect, it helps the company to align its strategic objectives with the changes in consumer behaviour, which helps in the generation of consistency in quality while also enhancing quality controls that are aligned with consumer preferences. Apple Inc. Implications and Recommendations Ultimately, there is the element of diversification of services and technology. Although there is a significant dominance of the iPhone market by Apple Corporation, there have been extensive aspects that have been incorporated to ensure that there is mitigation of risk associated with changes in the market(Fraser, 2020). To this effect, it remains critical for the company to ensure that there is consistency of Product diversification in other technologies and other wearable gadgets. The smartphone market is also maturing, meaning that there is an influx of competitors in the market. To this effect, the implementation of strategies such as differentiation and vertical integration will be essential in mitigating risks associated with the changes in market demands. On the other hand, there is also a positive implication of enhanced forecasting capabilities. Nevertheless, this effect the company can benefit from the accuracy of an efficient global chain supply chain. To this effect, the data-driven capabilities that are integrated through demand forecasting capabilities and the optimization of inventory levels

will enhance forecasting accuracy. The leadership dynamics will also gain insights into demand forecasts based on supply chain analysis and also help in understanding different supplier capacities through the integration of different business strategies. On the other hand, there is also the implication of consistent innovation. The Apple company and the manufacturing of the iPhone smartphones have significantly benefited from the research and development dynamics and also ensuring that there is the acquisition of other dynamics. To this effect, the small acquisitions will help in differentiating products in the market and also increase the visibility and dominance of the products. Bolstering Apple's ability to enhance differentiation is, therefore, one of the positive implications that can also be essential in increasing potential return on investment. As Tim Cook Additionally, as Tim Cook, there is a need to ensure that there is consistent implementation of vertical integration in the management of suppliers(Nasiri et al., 2020). To this effect, it will be a critical aspect in ensuring that there is risk mitigation while also implementing different measures that will diversify the products offered by Apple. The vertical integration would also ensure that there is a reduced dependency on specific suppliers while also ensuring that there is building of internal capacities, including in research and innovation. On the other hand, there should be consistent innovation; therefore, Tim Cook should guarantee investment in technology, which is part of the differentiation factors that will enable optimal return on investment(Nasiri et al., 2020). To this effect, maintenance of the competitive advantages will be vital to mitigate the rising competition, where differentiation will be critical in justifying the premium prices offered.

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On the other hand, there should be a focus on sustainability initiatives, which will help in enhancing the brand reputation and also guarantee optimal compliance with the macro environment. On the other hand, there should be a direct and indirect overhaul of the distribution channels, which would lead Apple Company towards sustainability, which would provide growth and stability while also strengthening strategic alliances to enhance logistics. Long-term partnerships will guarantee optimal mutual growth and increase the overall footprint in the smartphone market. The increase of retail networks will also be essential in enhancing sustainability initiatives within the company, which will be integral in enhancing supply chain optimization. On the other hand, the company should significantly incorporate blockchain technology and big data analytics. It will enable differentiation of the supply chain(Nasiri et al., 2020). subsequently, the traceability of the data through blockchain technology can be essentially in the identification of loopholes in their supply chain and how they can be mitigated while also helping in building knowledge management systems for the suppliers. There will also be the integration of optimal quality standards As the company expands to other sources of revenue, such as wearable gadgets and innovation in technology. The dynamics are therefore essential in ensuring that there is maintenance of competitive advantages for the company while also helping in building a footprint within the organization framework. On the other hand, there should also be a focus on building internal capacities in terms of human capital training and sourcing top talent. The company has extensive knowledge management capabilities, although more than consistent recruitment of top talent and engineers from the suppliers is needed to maintain competitive advantages. It is, therefore, vital to consistently build capacity through internal human capital capabilities while also ensuring that there is the integration of enhanced resources in research and development to guarantee optimal levels of innovation.

Conclusion In conclusion, the Apple corporation case study helps in the analysis of strategies in the global supply chain by Tim Cook in an ability to continue differentiation and market dominance in the smartphone industry. These vertical integration capabilities are some of the competitive advantages of the company supply chain. At the same time, the focus on sustainability and consistent innovation has been integral in ensuring the differentiation of the products. Nevertheless, the company should be aware of the increasing market maturity and extensive competition; therefore, their pacification of the products and services will be essential in maintaining market position, which will guarantee consistent return on investment. There should be a focus on innovation through differentiation and also providing a guarantee of human capital training to build capacity to reduce reliance on external suppliers for products, which will not only help in building consistent return on investment but also guarantee market dominance based on quality.

References Fraser, J. (2020). Apple Inc. Global Supply Chain Management. Ivey Business School Foundation . Nasiri, M., Ukko, J., Saunila, M., & Rantala, T. (2020). Managing the Digital Supply Chain: The role of smart technologies. Technovation , 96–97 , 102121. https://doi.org/10.1016/j.technovation.2020.102121

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