The Competitive Priorities of Apple Company - Case Study Example

Apple Company- Аnаlysis Rероrt Name Institution Course Tutor Date Table of Contents Table of Contents 2 1.Introduction 4 2. Company’s Competitive Priorities 4 2.1 Multiple products 4 2.2 Ecosystem 5 2.3 The pricing strategy and product differentiation 6 2.4. Involving customers 6 3. Operations Management and the Company 7 3.1 Why Operations Management Is Important To Company? 7 3.1.1 Availability of the company’s products to consumers 7 3.1.2 Makes it easier for Apple to explore the global market 7 3.1 How Operations Management Supports the Company in Achieving its Priorities 7 3.2.1 Product development 7 3.2.1 Enhances Apple’s marketing, and research and development 8 4. Company’s Common Operations Management Practices 9 4.1 Customer satisfaction 9 4.2 Model of reaching the market 9 5. Company’s Issues and Resolution 9 5.1 Issues Experienced by Apple Company 9 5.1.1 Competition 10 5.1.2 Economy and technology challenges 10 5.2 How Operations/Supply Chain Management Can Help Resolve Issues 10 5.2.1 Marketing 10 5.2.2 Innovation of the market 11 6. Company’s Process Map 12 7. Conclusion 13 8. References 14 1. Introduction Apple Company is a technology institution and an American multinational corporation that is headquartered in Cupertino in California. This corporation engages in designing, developing, and selling of electronics, personal computers, online services, and computer softwares (Hands, 2014, 79). The company operates in designing, creating and selling iPod, iTunes, Apple TV, Apple Watch, iOS 8 desktop computers, OS X, Mac notebooks, iPad, and iPhone among other electronics. Apple is a competitive company in the electronic industry because of its products and its services to the consumers. This report seeks to explore the competitive priorities of Apple Company and its operational management. The report also explores how the operations management of Apple Company supports the achievement of its priorities. In addition, the report identifies Apple’s operations management practices, the issues it faces, and their solutions. The report continues in looking at how the operations or supply chain management of Apple Company helps it to resolve the issues. The report ends up with a process map of Apple’s store and its head office operations. 2. Company’s Competitive Priorities 2.1 Multiple products Apple Company designs, creates, and sells a variety of products to consumers and they include; iPod, iTunes, Apple TV, Apple Watch, iOS 8 desktop computers, OS X, Mac notebooks, iPad, and iPhone. According to the argument put forth by Murphy, Phillips and Pollock (2014, 249), Apple’s products are all popular because of their features and quality, which makes consumers go for them. The company produces and sells computers and iPhones, accessories, caps, and T-shirts with Apple’s logo. It is clear that all these products are of high quality and appealing to the consumers, thus making it more competitive in the industry. However, Apple Company competes with BalckBerry Ltd, Android, Google Inc, and Hewlett-packard Company. These companies provide online services, and sells electronic accessories like computers and phones in the same industry with Apple Company. Apple Company produces and sells laptop computers, and mac desktops having different features, such as the OS X operation systems, the mac and probook, digital music system, games, and internet among other features. The products of Apple Company are simple to operate and they have touch screen to enhance enjoyment when operating the iphones (Chan, Pun, & Selden, 2013, 109). The production of classic smartphones makes Apple Company more competitive and the sales are considerate of the consumers’ interest. The tablet space makes the Apple Ipad lead in the market, the tablet is small, laptops are portable, and smartphones are smaller and manageable. 2.2 Ecosystem Apple is different from its competitors because of its vertical integration where it highly innovates in the market. The manufacture of Apple products is according to software standard where the retail stores have a closed ecosystem. The designing of the Apple’s software and devices enhances easy working with a number of devices whereby it is possible to share the devices. The applications introduced by Apple Company serves many devices together because of the same user interface. Myers (2014, 7) state that, Apple has a horizontal integration that includes iCloud to fit all the channels and devices in a chip design, thus enhancing sharing of the devices at the workspaces. The horizontal and vertical integration strategies make the company be more competitive in the market. 2.3 The pricing strategy and product differentiation Apple sells its products at a considerate price with prioritization of profit, and satisfaction of consumers. The demand for Apple products increases because of product differentiation making them attractive and unique to its customers. The company engages in brand loyalty and innovative advertising. Vergara (2012, 12) states that, once a product is good, customers will always be ready to pay more for increased volume, and this is the case in Apple’s products. Apple Company provides wholesale discount to the retailers for attraction of many customers. The retailers of Apple products enjoy the discount from the pricing model set by the company. Basanes, (2014, 7) identifies that, the prices of Apple products are premium. Marketing of Apple products is done globally whereby all its products have its logo. 2.4. Involving customers Apple Company involves the opinions of its customers when it intends to introduce a product in the market in order to satisfy the interests of the consumers. Apple Company respects the needs of its customers, thus corralling them to always purchase the company’s products regardless the competitors. According to Finkle and Mallin, (2010, 34) once a consumer buys product from Apple Company, such as iPhone, one naturally purchases other products like iPad, and laptop computers without any influence. Once customers like a product, the company distributes it in the market to meet the needs of the customers. 3. Operations Management and the Company 3.1 Why Operations Management Is Important To Company? 3.1.1 Availability of the company’s products to consumers As articulated by Chang, Kim and Joo (2013, 28), Apple Company works through a supply chain in order to reach all customers at their diverse locations. This enhances monitoring of the products’ demand and it predicts its forecasts. The Apple suppliers make it possible for the customers to have access to its products. The Apple supply chain enhances software ecosystem, branding, and innovation in the market and this enables the company to face the challenging issues, operations, and the processes accordingly. 3.1.2 Makes it easier for Apple to explore the global market Through Apple’s supply chain management, it becomes possible for the company to understand the nature of the market. 3.1 How Operations Management Supports the Company in Achieving its Priorities 3.2.1 Product development The planning of Apple Company supply chain involves; development of some new technologies, which enhances the company to have access to third party format of doing business, and license of the intellectual property. It also becomes possible for Apple to do effective market research, test the product in the market, realize the potential defects, and bring together the data cost. He (2014, 2) argue that, through the operation management, Apple manages to identify the effective launch quantity, offer software to the emerging products, pre-pay the suppliers, and raise orders, deal effectively with the material purchase dedication, and cope with the issues related to production ramp. The Apple Company operation management enhances forecasting of demand for many days, and enables resolution of the backlogs. The supply chain also helps Apple Company to review its inventory level, evaluate the trends of the component cost, monitor the sales level of the company, make it up-to-date the growth status of the new product, monitor the lifecycle status of its products, and make changes to the demand forecast of Apple products. As postulated by Burke (2013, 164) Apple prioritizes at producing products that are of high quality and products that meets the interests of many consumers. Through the operations management, Apple manages to understand the best design to apply in its devices and accessories because the suppliers and the management experts manage to reach even to the small market. Tsay (2014, 83) states that, operation management enhances launching of the Apple products and enables customers to have access to the company’s green light. 3.2.1 Enhances Apple’s marketing, and research and development Through the supply chain, Apple Company manages to market its emerging products, acquire its legal licensing, and be able to do the third party business. Flores, Musgrove, Renner, Hinton, Strozier, Franklin and Hil (2012, 78) identify that, Apple’s operation management allows the company to do effective research to enhance development of the company. This is through sourcing of services and materials from agencies, manufacturing of the products, warehousing of the Apple products, and distribution through the online store, retail stores, direct sales forces, the wholesalers, retailers, and the network carriers. There is also ability to return there the products are re-used to allow environmental conservation. Through the suppliers, wholesalers, retailers and network sellers, the company manages to market the new products introduced by Apple Company in the market. The warehouse of Apple Company, over 246 stores, and its customers makes it possible for the company to understand the market and the needs of the potential consumers. 4. Company’s Common Operations Management Practices 4.1 Customer satisfaction Apple Company produces and sells its products with the aim of offering satisfactory to all its consumers through cost cutting and quality products. The products of Apple Company are sold in reduced costs. The company ensures that, manufacturing, warehousing, and distribution of its products allows customer satisfaction. 4.2 Model of reaching the market Apple Company engages in a number of processes to make its operations management a success and to enhance effectiveness of sale of the products. Kumar, Teichman and Timpernagel (2012, 1282) identify that, Apple Company engage in research and development practices, testing of the company concept, pre-launching through determination of the product quantity and dedication to product quality manufacturing, launching of the products, and review of the market status. 5. Company’s Issues and Resolution 5.1 Issues Experienced by Apple Company 5.1.1 Competition Apple Company is faced with a tight competition in the industry from other companies like Blackberry, Android google, and Nokia among others. The products of Apple Company face competition from the market, for instance the iPad, iPod, and smartphones and this is a serious issue faced by Apple Company. Sometimes sale of Apple products becomes a problem because of high competition and increased number of similar devices having poor qualities in the market. The leadership of Apple Company is an issue because of Steve jobs where charisma is needed in production of quality products for their competitiveness. 5.1.2 Economy and technology challenges The sale of Apple products is very sensitive when the demand for its products becomes inelastic, for example in Europe market (Roh, Hong, & Min, 2014, 203). The features of Apple products require demonstrating technological capabilities of the company. When the company runs out of innovations, it becomes a challenge to produce improved products and products with different and diverse physical attributes. 5.2 How Operations/Supply Chain Management Can Help Resolve Issues 5.2.1 Marketing The Apple Company operations management enhances marketing of its new and existing products. This is because from the warehouse to the retailers, different customers are likely to know the existence of the product and how they are likely to benefit from purchase and use of the product. According to the argument put forth by Kraemer, Linden and Dedrick (2011, 15), through effective supply chain, it becomes possible for a company reach the global market and to advertise its products and this is the case in Apple Company. 5.2.2 Innovation of the market Hassini, Surti and Searcy (2012, 72) state that, through the supply chain, it becomes possible to conduct an effective research in the market. This enables Apple Company to know the product it is supposed to introduce in the market and the interests of the customers. It also becomes possible for Apple Company to understand the nature and status of the electronic devices. Through the operations management, Apple Company manages to make sales to the diverse market whereby it meets the consumers and the investors. 6. Company’s Process Map 7. Conclusion It is apparent that, Apple Company is a very competitive company in the electronic market whereby it produces products of very high quality. The company produces products; such as iPod, iTunes, Apple TV, Apple Watch, iOS 8 desktop computers, OS X, Mac notebooks, iPad, and iPhone and it competes with Android Google, Nokia, and BlackBerry electronic companies. Apple Company is very competitive because of its variety products, ecosystem, and pricing and differentiation of its products. The operations management of Apple Company enhances product development and distribution of the products to global customers. Apple Company faces issues, such as economic and technology, and competition in the market, and through the supply chain, it becomes possible to solve the respective issues. However, Apple Company is among the leading electronic companies because of its products and service to customers globally. 8. References Basanes, M. (2014). Apple (INC.)’s Logo: The Face & Downfall of the Millennial Generation. Ka Hue Anahā, 7. Burke, S. (2013). The Usefulness of the International Trade Commission as a patent Forum in the Wake of Certain Personal Data and Mobile Communications Devices and Related Software (Apple V. HTC). Syracuse Sci. & Tech. L. Rep., 29, 143-219. Chan, J., Pun, N., & Selden, M. (2013). The politics of global production: Apple, Foxconn and China's new working class. New Technology, Work and Employment, 28(2), 100-115. Chang, Y., Kim, J., & Joo, J. (2013). An Exploratory Study on the Evolution of Design Thinking: Comparison of Apple and Samsung. Design Management Journal, 8(1), 22-34. Finkle, T. A., & Mallin, M. L. (2010). Steve Jobs and Apple, Inc. Journal of the International Academy for Case Studies, 16(7), 31-40. Flores, M., Musgrove, K., Renner, S., Hinton, V., Strozier, S., Franklin, S., & Hil, D. (2012). A comparison of communication using the Apple iPad and a picture-based system. Augmentative and Alternative Communication, 28(2), 74-84. Hands, A. (2014). Tech Services on the Web: Apps for the IPHONE (Part One) http://www. apple. com/iphone. Technical Services Quarterly, 31(1), 79-80. Hassini, E., Surti, C., & Searcy, C. (2012). A literature review and a case study of sustainable supply chains with a focus on metrics. International Journal of Production Economics, 140(1), 69-82. He, X. J. (2014). The Effect of Supply Chain Strategy on Quality and US Competitiveness. Communications of the IIMA, 13(2), 2. Kraemer, K., Linden, G., & Dedrick, J. (2011). Capturing value in Global Networks: Apple’s iPad and iPhone. University of California, Irvine, University of California, Berkeley, y Syracuse University, NY. http://pcic. merage. uci. edu/papers/2011/value_iPad_iPhone. pdf. Consultado el, 15. Kumar, S., Teichman, S., & Timpernagel, T. (2012). A green supply chain is a requirement for profitability. International Journal of Production Research, 50(5), 1278-1296. Murphy, M., Phillips, D., & Pollock, K. (2014). 18 Doing It in the Cloud: Google, Apple, and the Shaping of DIY Culture. DIY Citizenship: Critical Making and Social Media, 249. Myers, C. (2014). Corporate Social Responsibility in the Consumer Electronics Industry: A Case Study of Apple Inc Roh, J., Hong, P., & Min, H. (2014). Implementation of a responsive supply chain strategy in global complexity: The case of manufacturing firms. International Journal of Production Economics, 147, 198-210. Tsay, A. A. (2014). Designing and Controlling the Outsourced Supply Chain. Foundations and Trends (R) in Technology, Information and Operations Management, 7(1-2), 1-160. Vergara, R. A. G. (2012). Samsung Electronics and Apple, Inc.: A Study in Contrast in Vertical Integration in the 21st Century. De La Salle University, Available at: http://www.aijcrnet.com/journalsVol2No9September2012/9.pdf Read More