Swot Analysis Of Apple Inc
1514 Words
7 Pages
Apple Inc. is one of the world’s most successful companies when it comes to supply chain management. In its early years, the company had difficulties estimating demand and managing inventory often leading to stock-outs. In mid 2000s Apple began working with suppliers, providing their upfront capital in return for volume commitment. This concept not only reduced the overall price per unit but was the turning point for Apple in better handling its supply chain. In conjunction with working closely with suppliers, Apple was able to keep tighter control of the supply chain by limiting the outsourcing of processes almost completely. Through its large investment in R&D, Apple was able to limit the types of configurations of products (unlike competitors)
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The second largest Apple market for apple phones and with that market on its way to saturation, the company has been eying emergency economies in Asia, and Africa. One of the biggest challenge in growing in those markets however is that fact that unlike in the US market, where Apple sells its phone full price to retailers, in markers such as India, carries virtually sell no phones. Apple has been enjoying high margins on their phones but in emerging economies where money is tight, Apple phones may seem too expensive to consider.
· Leadership: this is one of the biggest challenge for pretty much any company. In 1987, 2 years after Steve Jobs departure the company’s market capitalization was $11.6 billion. When he returned in 1996 as CEO that number had fallen $3.1 billion. During his tenure as CEO, Steve was able to propel the company to new levels. But after his death, there was some level of concern among investors who didn’t forget that during Steve’s absence the company went through multiple leadership that weren’t as …show more content…
Apple’s supply chain is ranked #1 by Gardner’s and this core competency gives the company a significant competitive advantage relative to industry peers. Apple already has a unique ability to modify production to meet fluctuating demand to prevent stock outs or excess inventory because they have the capability to coordinate its supply chain on a real time basis. Apple controls the entire supply chain that allows them to observe each process and make necessary adjustments to make the process more efficient. Additionally, Apple is investing another $10.5 Billion to further automate the supply chain with cutting edge technologies. These investments will make their operations more scalable and able to achieve more consistent performance, thus reducing manufacturing and logistics costs versus their competitors whom outsource the production of their phones. We believe the superior supply chain also enables them to be ready to introduce the next generation of successful products without materially disrupting existing segments. The uncertainty from new leadership has hurt the stock price, but we think it will rebound because of the focus and investments within the supply chain. Apple has also made strategic bolt-on acquisitions along with acquiring licenses for intellectual property to further strengthen their supply chain. The reduction in costs and thus increase in profit margins relative to peers positions the company for
The second largest Apple market for apple phones and with that market on its way to saturation, the company has been eying emergency economies in Asia, and Africa. One of the biggest challenge in growing in those markets however is that fact that unlike in the US market, where Apple sells its phone full price to retailers, in markers such as India, carries virtually sell no phones. Apple has been enjoying high margins on their phones but in emerging economies where money is tight, Apple phones may seem too expensive to consider.
· Leadership: this is one of the biggest challenge for pretty much any company. In 1987, 2 years after Steve Jobs departure the company’s market capitalization was $11.6 billion. When he returned in 1996 as CEO that number had fallen $3.1 billion. During his tenure as CEO, Steve was able to propel the company to new levels. But after his death, there was some level of concern among investors who didn’t forget that during Steve’s absence the company went through multiple leadership that weren’t as …show more content…
Apple’s supply chain is ranked #1 by Gardner’s and this core competency gives the company a significant competitive advantage relative to industry peers. Apple already has a unique ability to modify production to meet fluctuating demand to prevent stock outs or excess inventory because they have the capability to coordinate its supply chain on a real time basis. Apple controls the entire supply chain that allows them to observe each process and make necessary adjustments to make the process more efficient. Additionally, Apple is investing another $10.5 Billion to further automate the supply chain with cutting edge technologies. These investments will make their operations more scalable and able to achieve more consistent performance, thus reducing manufacturing and logistics costs versus their competitors whom outsource the production of their phones. We believe the superior supply chain also enables them to be ready to introduce the next generation of successful products without materially disrupting existing segments. The uncertainty from new leadership has hurt the stock price, but we think it will rebound because of the focus and investments within the supply chain. Apple has also made strategic bolt-on acquisitions along with acquiring licenses for intellectual property to further strengthen their supply chain. The reduction in costs and thus increase in profit margins relative to peers positions the company for