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 largest traded corporation by market capitalization, which has been over $700 billion. Moreover, Apple is recognized as the most valuable brand in the world. Apple has been able to achieve dramatic growth based on various factors. Corporate philosophy, business portfolio, technology, quality, and markets are the factors that have enabled the growth of Apple. In terms of technology, Apple’s Mac Operating System X has been considered one of the most advanced operating systems in the world. With its foundation is based on UNIX, Mac has a good reputation for being highly compatible, secure, innovative and user-friendly. Market operation has also led to the growth of Apple Inc. Being a multinational company, it sells its products and services to over fifty countries globally. The primary markets that the business operates include USA, France, Germany, Japan, UK and Canada. The company also operates in countries like Austria, Netherlands, Mexico, Belgium, Switzerland, Denmark, China, New Zealand and Finland among others. Overall, the company performs best in the USA and Europe. In terms of business and product portfolio, Apple’s portfolio is aimed to provide the best products that satisfy all customer needs. The product portfolio ensures the company’s success since it captures the needs of clients, according to trends and markets. The corporate philosophy and employee social welfare have been significant factors in ensuring the growth and success of the company. After the return of Steve Jobs as the Company’s chief executive officer, he tackled his responsibilities with passion and understanding to ensure the success of Apple Inc. Jobs streamlined the company’s product philosophy by simplifying design and removing various products from the company such as scanners and printers. Furthermore, Apple’s employees are provided with various benefits and facilities including paid holidays, staff discounts and maternity leaves. The company also provides a friendly working environment and annual bonuses to its employees. These employee services were aimed at promoting their morale and productivity in order to realize Apple’s active growth and improve working conditions. The company has ensured consumer goods and services are upgraded through production of new product versions every year. This strategy of producing frequently improved products ensures the company realizes high profit margins and market stability. With the corporate philosophy of mind, the company has
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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