How Apple INC supply issues effect the demand of its products such as Iphone, IPAD - Essay Example

There are several types of supply theories abased on the nature of products. Generally we use the supply chain system based on following important components as given below. Factory: The factory is the basic component and the point of origination for any supply chain. If a factory has issues in the production, the whole supply chain will suffer due to lack of the goods or the quality of the supplied products depending upon the problem respectively. Distributor: The distributor has a supporting role for a company in a supply chain.

He advises the company about the magnitude of the product to be manufactured. If a distributor is having issues then the supply chain will suffer due to the mismanagement in terms of faulty distribution. Stockist: A stockist acts as a filter between the distributor and the whole sellers as well as show rooms. The basic difference between a distributor and a stockist is that the distributor purchases the items as a bulk directly from the company while the stockist purchases the items at a relatively smaller scale from the distributor depending upon the local requirements of the market.

Whole sale: A whole seller acts as another filter between the retailers and bulk dealers. . Retailers: They are the source of products for the end users by the help of company support & distributor’s good supply chain. They also play an effective role in satisfying the end user by giving product knowledge and guarantee and warranty as well. End users: End users are the main component of a business. Each and every company designs its marketing and production strategies to attract end users in the form of customers.

They do it by facilitating the end users in different ways. CONSEQUENCES OF BREAKING OF SUPPLY CHAIN Companies invest heavily on generating customer demand about their product through advertising. Especially in smart phones, notepad, laptop industry customers have variable choices therefore, once the customer demand have been established the manufacturer has to ensure the continuous supply of the product to maintain the customer loyalty. Companies which fails to do so may loose their customer loyalty.

Following are some key issues can be raised if supply line break at the time of demand: NEED OF A NEW MARKETING CAMPAIGN: Once the demand developed in the market by the advertising campaigns the supplier is supposed to fulfill the customer demand. Otherwise customer may turned to other vendors. In this competitive era each product has several rivals in the market. Therefore, once the customer would have turned aside towards other product line or manufactures then in such situations the company has to re design the old marketing strategies, because the customer mind may not have any effect from old marketing approaches.

This new advertisements and marketing may cause a huge expense over the company sales. Therefore, companies are very careful in maintaining the supply line un-broken. FRANCHISE/DISTRIBUTOR, FIELD FORCE WILL LOOSE TRUST ON