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Apple Inc. essay

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Apple Inc. essay

Steve Wozniak and Steve Jobs founded Apple Inc. to change and revolutionize the way people viewed computers. The goal was to make computers that were both user-friendly and portable for individuals to have them in their offices and homes as well. Initially, Jobs and Wozniak began building Apple computers in a garage and sold them without the keyboard, casing, or monitor. However, these parts were added in 1977 as Apple II changed the computer market due to the invention of premier color graphics. The company went public in 1980 when the sales had increased to $117 million from $7.8 million in 1978. Over the years, Apple has diversified its operations by expanding into one that is focused on more than just computers. For instance, iPod and iTunes, which is media player software was launched, becoming a successful market boost in music players. In 2007, Apple introduced the iPhone, which has since been successful in the phone industry.

Products and Services

Apple has ventured into several areas within the market to use technology to improve the lives of other people. According to Johnson, Li, Phan, Singer & Trinh (2012), Jobs and Apple have consistently introduced and developed products that have made significant contributions to the industry. The services and products include iPad, iPhone, Mac computers and laptops, iPods, Apple Watch, and TV as well as a portfolio of both professional and customer software applications. Additionally, the organization has developed iPhone OS (Ios), watch OS and OS X operating system, Apple Pay, iCloud, and a variety of services, accessories as well as support aspects.

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Market Strategies

Currently, Apple Inc. has implemented strategies focused on marketing and innovative products. The goal is based on its ability to remain relevant and still compete effectively in the technology market. According to Zhang (2017), the marketing strategy embraced by Apple is determined to continue building a global brand via all the available markets. The launch of new products and expanding on the emerging platforms is a strategy that is aimed at attracting new consumers, growing the customer base, and reinforcing the relationship with their loyal clients. For instance, the organization has ventured into the emerging markets in China, which has the highest number of smartphone users, as highlighted by the massive sales in the 2015 financial data. This strategy also entails making their products and services unique as they meet the consumers’ demand. Based on the differentiation focus strategy of porter’s competitive strategy, Apple has created an entry obstacle to other competitors. This is because the company has captured the customers’ willingness to spend more for quality products hence retaining a constant price.

Supply Chain Strategies

Conversely, creating a balance between the market and supply chain strategy goals is vital in achieving the stipulated goals. Apple Inc. has a robust supply chain model, which has ensured the former has maintained its top position in the Gartner Supply Chain Leaders from 2013 (Hettiarachchi, 2016). The success of the organization is more than just the production of unique and innovative products. Its success also depends on a strategy that enforces its competitive advantage within the market (Park, 2014). As a company that is popular for its innovative features, the supply chain structure should be responsive rather than just efficient.

In this case, Apple has implemented the agile supply chain method that is keen on flexibility and responsiveness to consumer requirements. Moreover, the risk of supply scarcity or disruption is managed by combining inventory as well as capacity assets. Based on Hettiarachchi (2016), the strength and success of Apple’s supply chain are due to the combination of responsive and controlled supply methods. Further, the agile approach allows the company to adapt to the different changing and unpredictable needs of the consumer on the front end as the later minimizes the supply interruption back-end risks.

In addition, Apple has achieved end-to-end control of the physical supply chain structure as it seeks to minimize the costs from the source to the stores. The former purchases raw materials from different sources and ships them to an assembly station in China. The products are then distributed around the globe to American and European distribution locations where the stock is kept until requested by retailers (Montgomerie & Roscoe, 2013). This approach allows the organization to manage large product launch without the task of maintaining costly and massive inventories. Furthermore, Apple joins the low-cost assembly and manufacturing of a majority of electronics firms with luxury product marketing and pricing methods (Nath, Saha & Salehi-Sangari, 2008). Despite that, the agile supply chain has several advantages; it also has weaknesses that affect the company. These challenges include supply chain disruptions like human-made and natural disasters, relying on logistical figures provided by the outsourcing groups, depending on the partners to abide by the supplier code of conduct, and the inventories can become obsolete or surpass the expected demand.

The current freight flow is characterized by outsourcing suppliers, which has affected the company’s products and plan. As a renowned firm, the goal is to maintain their expertise, create innovative features as well as have an agile supply chain. Therefore, the future of freight flows in Apple will rely on having their manufacturing plant in the United States. The next technology innovation should be built within the USA to ensure Apple Inc. regains its input in process manufacturing and engineering. Further, freight flow should adopt the agile method whereby long ocean movements are eliminated via the presence of warehouses in the designated stations to handle the market.

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