Question

Identify the most important resources and capabilities represented in a=Apple's global supply chain (considered my many to be the best in the world), using the VRIO approach. Additionally, What do you think are some of the key global issues and options Apple faces going forward (from 2020)?

Answer 1

Answer :

Apple Inc., given the difficulties in the growing global business climate, has a history of success in the information technology and consumer electronics industry. This success record shows the use of the company's core competencies, as described in this VRIO review. The model for analyzing the VRIO evaluates the business value, rarity, irritability, and organization. The ultimate purpose of this internal analysis is to determine the company's core competencies and competitive advantages, based on the VRIO variables. Focusing on creativity at the business is a leading source of competitive advantage. The other fields where Apple has gained a significant competitive edge include marketing and the price of its products. Given the strength of competition in the technology industry, however, one can not depend on one single source of competitive advantage.

Core Competency	Does it have Value?	Is it Rare?	Is it Inimitable?	Is the company organized
Research & Innovation	yes	yes	yes	yes	Sustainable competitive advantage
Product Line	yes	yes	yes	yes	Sustainable competitive advantage
The Brand	yes	yes	yes	yes	Sustainable competitive advantage
Supply Chain Management	yes	yes	yes	yes	Sustainable competitive advantage
Global supply	yes	No	No	yes	Temporary competitive advantage
Global Recognition	yes	No	yes	yes	Competitive Parity
Bargaining Strength	yes	yes	No	yes	Competitive Parity
Global sales and Distribution	yes	yes	No	yes	Competitive Parity

It has been argued that in its supply chain, Apple has gained such flexibility that the business acts as a monopsony (one buyer, several sellers), so that it can dictate terms to its suppliers. Apple has a global sales and distribution network which includes physical and online distribution networks, this partnership is a huge advantage. Apple uses various sales and distribution outlets to distribute its goods including registered resellers, e-commerce, and physical stores. Apple has developed its branded retail stores in several of its leading markets which function for the company as both sales and marketing channels. Managing supply chains in the twenty-first century have become crucial to commercial success. Since competition in the tech industry has increased, it has become necessary to ensure the availability of quality raw materials in order to manufacture high-quality goods and achieve faster growth in the market. Innovative supply chain management guarantees both low operational and timely output expenses. Apple's supply chain is wide and global. It emerges from different parts of the globe. Nevertheless, the bulk of its supply chain is located in Asia, and primarily China, due to the availability of quality raw material and labor.

Apple is a well-recognized company internationally. The company is known for its creative products, price, and marketing. Clear awareness of the brand translates into quick brand recall and improved sales. The business has gained greater consumer loyalty and confidence through a strong emphasis on quality and customer service. Its strong recognition is also one of the key factors which drive the brand's faster development.Let's discuss apple key global issues of furure:

1. Trade Uncertainty:

While Apple enjoys a strong consumer brand that makes the demand for its products inelastic, its sales are sensitive to an impedimental turn, particularly in Europe.

2.The decline of smartphone sales:

Apple investors have reaped great rewards as phones have become the center of the universe for customers. But, taking a longer look, smartphones could not always play such a dominant position in consumers ' lives. Currently, for the most part, the smartphone remains the predominant medium for consumers to communicate with the Internet. We see the potential for a future where the smartphone plays a diminished role as consumers engage increasingly with connected devices without their smartphone's control.

3.Can apple make its phone exciting and innovative again:

Amid all the media and pundit hysteria surrounding new iPhone releases, the impression I get from average people – you know, the folks who purchase these things – is that the latest iPhones are largely being treated as pedestrian updates. It seems customers don't purchase them for the latest apps, but rather simply to update an older, tired iPhone.

4.The leadership challenge:
The company is in the midst of a transition of leadership that casts a shadow of doubt over its future. Without Steve Jobs, it would be difficult for Apple to survive, because he was a visionary with a clear vision, a man who understood the technology, the business, and the art and was able to mix in blockbuster goods altogether

5. Selling Investors on the Services Story:
Apple said they will no longer announce sales of iPhone units because they're just not important anymore. Many analysts agree but it might take time for large investors to adjust to the new reporting regime. Many observers have been seizing evidence of slower iPhone demand, and it will take more work for Apple to convince investors that services — not unit sales — are indeed the future.

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