Apple’s Supply Chain Management

Abstract

The paper explores Apple and its previous, background, model loyalty, issues, decline of product, and advised solutions. Apple was began on April 1, 1976. It was established by three males; Steve Jobs, Steve Wozniak, and Ronald Wayne. On January 10, 2006, Apple released the MacBook Pro and iMac which was the first Apple laptop to use Intel’s Core Duo CPU. Apple’s clients fly in from all around the world to see the opening of merchandise and stores. They even suggest outdoors the shops.

Their fan base is as a end result of they have an excellent product. Not so much the value as a end result of you’ll be able to basically get the identical product at a cheaper price form considered one of Apple’s opponents.

The problems that Apple is having is getting their product to the customer on time. Which many say is the end result of unhealthy supply chain administration. The paper goes over how they got to the issues that they’re having and a few solutions to those issues.

Keywords: Monopsony, Brand Loyalty

Apple’s
Supply Chain Management

Background

Apple is a very big firm, and is a company that everyone knows. Apple was started on April 1, 1976. It was established by three males; Steve Jobs, Steve Wozniak, and Ronald Wayne. On January 3, 1977, Apple was incorporated without Wayne; he bought his shares back to Jobs and Wozniak for $800. A multimillionaire delivered the important business data and funding for the incorporation of Apple. By the top of the 1970’s Apple have a good sized employees of hassle computer designers and a manufacturing line.

The Macintosh was made well-known by the 1.5 million dollar commercial “1984” launched on the third quarter of Super Bowl XVIII on January 22, 1984.

The Macintosh at first sold well, but it soon withered off because of the excessive prices and limited alternative of software titles. The Macintosh Portable was presented in 1989 and was designed like a desktop and weighed 17 kilos. In 1998, Apple’s iMac was introduced by a design staff that was led by Jonathan Ive and he was additionally the man who designed the iPod and the iPhone. Apple’s gross sales improved from that second. On January 10, 2006, Apple launched the MacBook Pro and iMac which was the primary Apple computer to make use of Intel’s Core Duo CPU (Lashinsky, 2011.)

On January 17, 2011 Jobs introduced in a memo that he would take a medical leave for an indefinite interval. It has been stated that due to Apple’s efficient supply chain the corporate operates as a monopsony, which where one buyer has many sellers. Brand Loyalty Apple’s model loyalty from prospects runs deep in its customers. It could be very unusual for any product to have the type of brand loyalty that Apple does. Apple Store opening can draw crowds of thousands with individuals waiting in line as a lot as a day before the occasion. People additionally fly in from all over the world to see the opening of products and stores. Some people say that it’s the advertising and advertising is the reason that attracts the type of loyalty that Apple has. The loyalty of the shoppers goes as far as when people are ready in line some of the fans use the chance to suggest marriage. Problems

After Jobs announced his medical leave, he appointed Tim Cook to his job. Tim Cook was the chief operating officer. He was the one who over saw the supply chain. When he assumed Jobs position he took on more work than he was used to. Therefore his work began to say no, he stopped specializing in the availability chain and began working on the advances of technology (Spence, 2012.)

Decline of Product

After the dying of Steve Jobs, the corporate stock declined due to the products. There was problems with the shipping of the iPhone 5 as a outcome of there was not enough made. When the iPad Minies reached the customers, they offered out in time for the press launched. But when more orders came in for the iPad Minis the shoppers experienced longer wait time. This might have been as a end result of supply chain not working correctly. Also the iPad Minis launch date has been pushed pack. When Apple made the promises of an October occasion and missed the date. The different issues that has been un-Apple-like was Siri, it was not the method in which that Steve Jobs would have appreciated it to be. He wished it to be constantly wonderful and it’s not it had to be concern with an update. The Maps app in iOS6 lead to the discharge of two Apple staff and a public apology from Cook (Maisto, 2012.)

Conclusion

The conclusion to a lot of the Apple consumers can be to work extra on their supply chain. Working nearer with their suppliers will help with the overall product. It might be a faster shipping or quicker assembly. But one factor is definite about working closer with their suppliers, it could possibly by no means be a nasty factor. The better relationships that you have with the individuals supplying you the product the higher the product shall be (Maisto, 2012.)

Suggested Solutions

Apple wants to fix a few things to get back on the money making wagon, so to say. They have a good product however it needs to be texted more. If Apple feels the necessity to release an iPhone each three months the purchasers will assume why I can purchase this one when it will be out of date in about another three months. Another thing that Apple must work on is their supply chain. Since Tim Cook moved up within the within the company he has not been trying over the supply chain as properly as he should be. I believe that he must be hiring extra people to handle the availability chain and less individuals to engineer Apple’s products. They might come to realize that they may lower your expenses in the lengthy run if they’ve better relationship with their suppliers and deal with their employees better (Spence, 2012.)

Future

The way forward for Apple just isn’t clear. Cook desires to bring extra jobs to the United States. He says that more components of the Mac might be introduced over to the United States so that it’ll convey more jobs to the United States, an estimate of 600,000 jobs. Cook also needs to get in to the tv market. He says that, “it is an area of intense curiosity to us (Maisto, 2012.)”

References

Spence, E. (2012, November 18). Apple’s provide chain issues mirrored in inventory pricing. Retrieved from http://www.forbes.com/sites/ewanspence/2012/11/18/apples-supply-chain-issues-reflected-in-stock-pricing/ Maisto, M. (2012, December 7). Ceo tim prepare dinner on apple’s future: Don’t guess against us. Retrieved from http://www.eweek.com/mobile/ceo-tim-cook-on-apples-future-dont-bet-against-us/ Lashinsky, A. (2011, August 25). How apple works: Inside the world’s largest startup. Retrieved from http://tech.fortune.cnn.com/2011/08/25/how-apple-works-inside-the-worlds-biggest-startup/