Question

For eight straight years, Apple has been recognized as having the best worldwide supply chains in the "Gartner Global Supply Chain Top 25" ranking. In the most recent ranking, Apple was actually classified above the ranking as a "Master (Amazon.com was the listed the number one company). The Master status recognizes the accomplishments and capabilities of long-term global supply chain leaders in the Gartner Global Supply Chain Top 25. Companies qualify for the Masters category if their score places them in the top five rankings for at least seven out of the past 10 years. Numerous accolades have also been made about Apple's supply chain strategy, operations, and results. For example, Apple's supply chains "best demonstrate leadership in applying demand- driven principles to drive business results."Apple dominates because it consistently brings both operational and innovation excellence to bear in some of the most competitive markets in the world.* Basically, Apple gets a lot of credit in the supply chain profession for being able to ramp up volumes both in hardware and software while also uniquely helping redefine the consumer electronics market (e.g., iPhone, iPad, MacBook) Apple is the world's second-largest information technology company by revenue after Samsung and the second-largest mobile phone producer also after Samsung. In Interbrand's Best Global Brands report, Apple is now also the most valuable brand in the world. It overtook Coca-Cola in 2013 for the number one position after Coca-Cola's 13-year run at the top and has stayed at the top every year since that time. Apple has an estimated brand value of more than $170 billion. Few brands have enabled so many people to do so much so easily, which is why Apple has legions of adoring fans. These fans" or customers have downloaded apps for Apple's electronic gadgets more than 60 billion times The company's general supply chain model follows the path of most large multinational corporations' supply chains. They do research and development to cultivate new technologies and/or to acquire intellectual property needed for future products. They test the product concepts via marketing research, product testing, and total cost analysis. After that, Apple typically does a prelaunch of new products, where global production, sourcing commitments, inventory management, and so on are evaluated. The product launch involves doing demand forecasts resolving potential backlogs, and ensuring that the products are in the hands of its customers in as fast a cycle time as possible. After the launch, monitoring starts with periodic reviews of inventory, demand, life cycle status, and component cost forecasts. A number of factors make Apple's global supply chains world leading. First, early on, Apple took steps to manage the total value created in its global supply chains by managing its suppliers and all other providers within the chains. Predetermined expectations of suppliers, exclusivity in supplier arrangements, and volume guarantees ensured a supply chain infrastructure that could support Apple's aggressive market leadership. Apple's relationship building with its network partners is also a strength that has helped with increased scaling of production and resulted in improved quality in the manufacturing processes. Plus, and not to be underestimated, Apple has amassed lots of cash! The available cash funds have partially been used to place high-volume orders, which strengthen supplier relationships, and in other ways maintain global supply chain leadership.

here are some questions concerning apple's case study:

1.According to Interbrand’s analysis, Apple’s brand is valued at more than $170 billion, while Google in second place is valued at $120 billion and Coca-Cola in third is at $78 billion (2015). Do you agree that Apple should be so far ahead of its nearest brand competition? What about Samsung, which is larger in size (Samsung is valued at $45 billion)?

2. With Steve Jobs, Apple’s legendary founder and CEO, passing away in 2011, what can we expect from Apple in the future? Will they be as innovative? Will they remain brand value leadership? Will they run the top global supply chains in the world?

3. Apple products have usually been priced above their competition and sold for their value, intrigue, and market leadership. Some would say Samsung is catching up on many of these fronts and even passing Apple perhaps. Do you think Apple can charge a price premium for their products much longer?

4. Apple’s global supply chains make their business thrive. There is secrecy among suppliers, superior quality standards by every party involved in Apple’s supply chains, and a total value focus that ultimately makes the customers happy. Is this a sustainable business model for their global supply chains?

Answer 1

1. Yes, I agree that Apple should be so far ahead of its nearest brand competition when compared to some valuable brands like Google, Coca-Cola, and Samsung as Apple keeps on surprising its fans worldwide with their new product launch every year. Apple offers a wide range of elite class products that are performance oriented with great designs and Apple’s current mission is to develop their new software versions for the iPhone, I-watch, Imac (i.e iOS, mac os, Watch os) and to make their products more sleek in design. The company also focuses on providing the customers great after sales service support and when compared to Samsung, Apple offers a very limited range of products in the area of personal computing whereas Samsung offers a wide range of products in every area from home entertainment appliances such as(Tv, Washing machine, Air conditioners, Dvd players and many more) to electronic gadgets such as Mobile, laptops, Tablets and much more but somewhere it lacks in delivering the quality in their products and after sales service support that they offer which may also hamper the brand name of the company and when compared to Apple, Apple products are easily synonymous with the word quality. Their offering is premium product over what they call the “junk-market”. Therefore, their product strategy can be called the “great product strategy”. Leveraging the fact that they produce hardware, software, OS and other implantation.Apple's vision is to give the customers the best possible experience in terms of personal computing in its class. The company is apparently working on the new technology that is the Infinity display that they have recently introduced in the new iPhone X that's why Apple is considered worth $170 Billion whereas Samsung is valued at only $45 Billion despite being a larger company than Apple.

2. Apple is still doing great when it comes to innovation and technology and the new CEO of the company Tim Cook surprised the Apple fans by introducing the touch id in the iPhone 5s in 2013, being the first smartphone in the world to have a real "fingerprint sensor" and whereas in 2015 Apple launched the 3d touch system with hands-free Siri control and the latest invention such as the iWatch, Airpods and the iPhone x with its revolutionary infinity display design is very appealing and the after-sales service support is as amazing as it was earlier. So, I think that Apple is still maintaining its brand value.

3. Apple values are the quality that they ensure to give in every segment of their products that they offer, and the principle of the company to encourage their employees and to provide the customers with the best in class after sales service support in order to achieve their organisation’s goal. Apple started with creating hardware for computer and landed into the mobile phone market becoming one of the most recognizable brands in their respect. Their “great product” strategy involves providing the customer with a premium offering of a product that essentially defines quality. They create fewer variations of products due to the reason that they have found their niche in the sense that they know which products perform more and redesign the scope of its implementation over the current design. Their packaging, offering, plans and updates are what make their brand a favourite for people and provide for the competition aspect for the other companies and I think that Apple can charge a price premium for their products much longer based on the company's track record whereas Samsung is trying its level best to beat Apple in terms of technology but the quality that Apple ensures in every product that they manufacture with the eye-catching design is unmatched and this is where Samsung hangs back.

4. Apple’s distribution strategy involves selling the product through closely controlled channels. They sell their products online on the Apple store website, through Apple stores and then create a distributor network through large electronic sellers. They offer premium products and the strategy they follow is that they never discount their products no matter which channel it is sold through. They maintain the price through the use of minimal dealer margin and set pricing with no holiday sales cut offer. This allows them to maintain a reasonable stability in their pricing range and distribution network.
Apple endorses their product through various streams like the media, the internet, big advertising in prime time channels and advertising through sports sponsorships. They spent a fortune on this part of the product’s lifecycle, to a point where pre-sales booking starts a month or so prior to the date of the release and is really hard to buy during that initial phase due to the massive demand in the consumption. Apple's vision is to give the customers the best possible experience in terms of personal computing in its class and yes it is a sustainable business strategy.