Apple Inc. is a multinational corporation founded in 1976 by Steve Wozniak, Ronald Wayne and Steve Jobs that specializes in the development and manufacture of computer software, online services, and general consumer electronics. The company is headquartered in Cupertino, California and its main products include Macintosh computers, smartphones, tablets and portable media players. The company’s online services include iCloud, iTunes Store, and App Store. The computer softwares include OS X and IOS operating system and Safari web browser. The company’s current CEO is Tim Cook, who joined the company in 1998. As of 2014, Apple’s worldwide total revenue and gross profit have estimated $182 billion and $ 70 billion. Apple Inc. becomes the world
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Due to this operational leverage, the company is able to sell massive quantities of their products, even during busy retail seasons. Apple’s ability to completely dominate supply channels not only shows how they are able to “flex” their muscles, but, also clogs up the process of their competition. This logistics strategy is known to some as Apple’s “competitive weapon”. As described in one account, shippers had to explain to a specific manufacturer that they were unable to meet deadlines because they were booked up servicing another “very important …show more content…
Apple can improve profitability by improving the logistics of their supply chain network. The main problem with Apple’s Supply chain is uncertainty in demand for its products. For example, when referring back to Exhibit 2, if the United States experiences demand that is greater than its capacity, then the U.S will face a shortage and lose out on potential profits. Since the plants only specialize in creating certain parts, the other plants cannot help produce that product if another plant faces a capacity shortage problem. What if the U.S plant experiences demand that is less than its operating capacity? The plant will once again lose profits because it is only specialized in producing one part. It cannot lend some of its capacity to help produce another item in one of the other
Due to this operational leverage, the company is able to sell massive quantities of their products, even during busy retail seasons. Apple’s ability to completely dominate supply channels not only shows how they are able to “flex” their muscles, but, also clogs up the process of their competition. This logistics strategy is known to some as Apple’s “competitive weapon”. As described in one account, shippers had to explain to a specific manufacturer that they were unable to meet deadlines because they were booked up servicing another “very important …show more content…
Apple can improve profitability by improving the logistics of their supply chain network. The main problem with Apple’s Supply chain is uncertainty in demand for its products. For example, when referring back to Exhibit 2, if the United States experiences demand that is greater than its capacity, then the U.S will face a shortage and lose out on potential profits. Since the plants only specialize in creating certain parts, the other plants cannot help produce that product if another plant faces a capacity shortage problem. What if the U.S plant experiences demand that is less than its operating capacity? The plant will once again lose profits because it is only specialized in producing one part. It cannot lend some of its capacity to help produce another item in one of the other