StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Value Chain of an Apple Incorporated - Essay Example

Cite this document
Summary
The paper "Value Chain of an Apple Incorporated" states that value chain is defined as the process by which a firm establishes its primary and secondary activities that add to the final product, as well as analyzing these in the manner in which they increase differentiation or reduce costs…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97.6% of users find it useful
Value Chain of an Apple Incorporated
Read Text Preview

Extract of sample "Value Chain of an Apple Incorporated"

Apple products are free from toxins such as BFR. The products are enclosed in highly recyclable aluminum. The firm also outsources production to third-party OEM partners to eliminate the burden of production management. Manufacturing components inside the Company eliminates the transaction cost of purchasing them in the market thus optimizing the plant’s utilization. As a result, it results in greater economies of scale. The firm also needs to locate its production units near a cluster of suppliers to reduce the costs of purchasing and distribution (Apple Inc., 2013).
Outbound logistics: Apple needs to use a variety of direct and indirect distribution channels. The electronic Company is improving its capacities for distribution by increasing the number of its retail stores globally. Lastly, Apple Inc. has developed economical packaging. This reduces material waste and emissions produced in transit (Apple, 2014).
Sales and marketing: sales are very crucial in ensuring that a firm sells its products. Apple makes use of both print and electronic media to advertise its products. Apple can make use of radio, television, and newspapers, as well as online marketing tools such as Facebook and Twitter to increase its scope of customer reach. This saves the cost of rent or salespeople at the stores.
As part of its marketing strategy, the firm has entered into patent cross-licensing and also technology agreements with Microsoft. This was after years of unimpressive growth in market share. To maintain its market share, Apple has its own branded stores internationally that assist sell its products (Apple, 2014).
Procurements: Recently, the firm realized that outsourcing the raw materials; core ingredients in the manufacture of a product that already exists in the market may be considered as a step towards gaining a competitive advantage by Apple Inc (Apple, 2014).
Human resource management: the firm has been offering training and development to its suppliers along with the employees equipping them with both academic skills (Apple, 2014). Cost reduction can be used as a method of identifying opportunities (Grant, 2010). Apple Inc. can deal with high wage rates by outsourcing jobs to low-wage nations and improving its speed of production, along with installing automated processes in the production cycle.
The firm’s infrastructure: the firm has a diversified workforce that is guided by Apple’s code of conduct. This ensures efficiency and improves productivity (Apple, 2014).
Technology: The other major element in the Apple value chain analysis is the research and development section. Apple Inc. can further improve its technology to offer the firm a competitive advantage against the other product and service offerings to the market. Technology represents the core of Apple’s capability. Apple’s history is rich with the development of cutting-edge technology. Apple’s operating system is considered as the most stable and reliable (Apple, 2014).
Customer service: Apple has been able to maintain its substantial cash reserves through the creation of a virtual love affair with its customers by offering superior products such as iPods and other MP3 players. The firm also needs to aggressively pursue software and hardware updates. Apple has effectively integrated its primary activities making them transparent to the consumers. For example, Apple developed software that runs on Windows XP for its new Intel-based iMac and then posted it online free of charge for the iMac users (Apple, 2014).
Services: Apple offers repair and maintenance services for its products. This not only enhances customer satisfaction but also creates a good relationship between the firm and the client. Besides, all Apple products have warranties that cater to damage in case of product failure (Apple Inc., 2013). These services ensure that the customers are supported after purchasing the product (Grant, 2010).
Legal services: the firm deals in a market that is characterized by change and innovation (Porter, 2011). As a consequence, the drive to expand product and service offerings may be subject to claims of patent and copyright infringements (Grant, 2010). To address such claims, the firm needs to have an effective legal department in safeguarding intellectual property.
Apple failed when it partnered with Microsoft, its major competitor (Gardener, 2008) in the acquisition of Playforsure. Microsoft designed an ideal media player that was costly for the market. Apple used Playforsure technology to develop its line of music players, which profited minimally (Apple, 2014). Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Apple Hamdi 3 Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
Apple Hamdi 3 Essay Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/management/1647391-apple-hamdi-3
(Apple Hamdi 3 Essay Example | Topics and Well Written Essays - 500 Words)
Apple Hamdi 3 Essay Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/management/1647391-apple-hamdi-3.
“Apple Hamdi 3 Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/management/1647391-apple-hamdi-3.
  • Cited: 0 times

CHECK THESE SAMPLES OF Value Chain of an Apple Incorporated

What are the strategies of Apple Incorporated

The opening of the thesis report consists of the background information about the apple incorporated.... The discussion seeks to answer the question: What are the strategies of apple incorporated?... ? apple incorporated made itself distinct by making its hardware and software work in synergy that enabled its products and services unequalled by its competitors.... This change was a result of a succesful implementation of its value chain activities that has significantly lowered its price....
4 Pages (1000 words) Essay

Is Apple a Sustainable Company

During the next five years the company took steps to enforce compliance with its supply chain responsibilities, it incorporated an internal control system and established worker empowerment training.... From the paper "Is apple a Sustainable Company" it is clear that apple Inc.... The article discusses the improvements that apple Corporation has made in terms of sustainability since 2007.... In 2007 the company addressed an issue with toxic materials found in apple products....
4 Pages (1000 words) Research Paper

Brand Management Apple

Having an apple brand would mean getting the right quality of product offering.... This essay "Brand Management Apple" discusses Apple's Brand value chain which specifically composed of value stages and filters.... There are three most important and distinct about marketing program investment of apple.... apple primarily tries to go for cutting-edge technology which is a strong marketing proposition that it tries to integrate into all of its product offerings....
7 Pages (1750 words) Essay

Apple Incorporated in the Global Business and Economy

The paper "apple incorporated in the Global Business and Economy" discusses corporate goals in the process.... The selected strategy of apple incorporated is a specific step for its competitive advantage.... External Analysis The business environment for apple incorporated has become so challenging considering that there are important components in it that need to be understood in detail.... n the case of apple incorporated, it is crucial with its business to maintain its identity and this is done through intellectual property management for the designs of its product offerings....
10 Pages (2500 words) Essay

Supply Chain Management

The essay "Supply chain Management" is about a basic element of the growth of the manufacturing period.... A basic collective definition of the supply chain is thrice some time more accordingly, these are the firm's dual equipped transitional informing, capital, assistance for providing goods, and commodity availability destination of consuming.... In simpler words, a supply chain is cooperation among companies or organizations in order to improve cumulative as well as individual performances....
8 Pages (2000 words) Essay

Strategic Management, Sector Matrix versus Value Chains in Apple Company

The three tools that the paper will investigate are; porter's value chain, commodities chain framework as proposed by Greffi and Korzeniewicz, and Sector Matrix as proposed by Froud and others.... ector matrix is an extension of porter's theory of value chain (Venkataraman and Pinto, 2008).... The paper "Strategic Management, Sector Matrix versus Value Chains in apple Company" highlights that the sector matrix is important in that it provides the respective users with adequate information for the modification of the products to suit the demand patterns....
8 Pages (2000 words) Essay

Apple Brand Value Chain

This means that when it comes to apple incorporated's brands, every person should buy it because everyone has the chance to be stimulated with the need to have and try it.... The case study "Apple Brand value chain" states that Shown in the above illustration is Apple's Brand value chain which specifically composed of value stages and filters.... There are three most important and distinct marketing program investments of apple....
7 Pages (1750 words) Case Study

Business Environment for Apple Incorporated

The paper begins with the statement that apple incorporated started to race with IBM in the field of personal computing which paved the way to its Mac (Macintosh) computer product line.... Today, apple incorporated is known not only for its computer product lines but iPods, iPhones, and iTunes.... According to the findings, it can, therefore, be said that apple incorporated has become renown in the world by its iPod together with its cutting-edge technology and design....
10 Pages (2500 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us