Apple Case Study
a) Draw Apple’s Value Chain (2 points).
b) What is Apple’s Business Level Strategy (1 point)?
Apple has a Differentiation business level strategy
c) Explain how Apple manages its value chain activities in a way that they support the successful execution of its business level strategy; identify problems in the value-chain activities and offer solutions (please use the grid below to answer your question)—12points.
Value chain activity
Primary How is this value chain activity done in Apple?
Write N/A if this doesn’t apply to a specific activity How does the activity help Apple to save money? (Cost Leadership)
Write N/A if this doesn’t apply to a specific activity How does the activity help Apple to differentiate itself from competitors? (Differentiation)
Write N/A if this doesn’t apply to a specific activity
Inbound logistics Apple has implemented an automated receiving system. It also works with its partners to delegate the raw materials acquisition process This speeds up the receiving process while reducing the facility footprint and storage space requirement Apple has found a way to minimize inventory cost, and be as efficient as …show more content…
a) What is Apple’s Corporate Level Strategy? Why—explain? (2 points)
Corporate level strategy addresses two issues: what businesses should a corporation compete in and how can these businesses be managed so they create synergy which would result in a better output desired and achieved by working together versus working independently. Apple's corporate level strategy includes diversification that creates synergy. Diversification requires Apple in this case to acquire new skills, new techniques, and new facilities. Apple prides itself on innovation and now offers home computers, personal computers, phones, music devices, software and applications
b) By using the tree analogy, demonstrate Apple’s core competencies, core products, core businesses, and end products (3 points).
Apple's core competencies are innovative design and technology.
Apple's core products include graphical user interface, software, and operating systems
Apple's core businesses are Apple Inc., Next Computer, PowerMac, NextStep, Itune Music store, Apple Store, Genius Bar, and Apple Retail …show more content…
This holds true for Apple while Jobs gave Bill Gates at Microsoft some Macintosh prototypes to use to develop software. In addition, relationships with third party software developers were strengthened while they also created Mac versions of popular Microsoft Office software as well as Adobe. The CEO Spindler wanted to allow other companies to produce manufactured Mac clones which ultimately led to 20% of Mac unit sales. Supplier agreement partners Hynix, semiconductor, Intel Corporations, Micron Technology, Samsung Electronics, and Toshiba Corporation.
d) What do you see in Apple’s future in terms of diversification/growth? (2 points)
Apple's future in terms of diversification/growth can be viewed as very promising or very brim. Although Apple is presently the largest company in the world with a huge success story and continually beating prior earnings and amazing growth, future expectations are hard to forecast, especially without the visionary. Investors presently remain faithful but there appears to be no clear succession plan nor is there evidence of any nurturing o development of top performers to increase or broaden their skills to prepare for future innovation. This may affect investor loyalty in the long