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Case Study on Supply Chain Management System of Apple

It’s not surprising that even the kids are aware about the brand image and popularity of the Apple. As in the current marketing situation each and every person know about the existence of Apple company and what they produce in the market. Apple is the brand which is highly recognisable because of its impactful services in the technology sector. Apple was founded in 1965 by Steve jobs.

apple

Figure 1. Apple logo 2021

The company designs and manufactures smartphones, personal computers, wearables, tablets with multi-purposes services as per their tag-line which states “Think Different”. Apple is providing its services in numerous countries and their pricing strategy is also varying among the nations. Australia is one of the country which provides cheapest Apple smartphones in the world.

apple company

Figure 2. Apple company 2021

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Management of Apple

It is the framework that binds people together on common platform with the aim of achieving goals. Having effective management in an organisation produces fruitful results and that effectiveness in management does not come with just adopting a management style. But it can be developed by the administration of the organisation through in-depth detailing of the organisation and their workforce. Apple company is supposed to be place where people are struggling to work for because they have very efficiently managed their organisation with adopting and executing great management approaches with capable leadership.

 apple organization

Figure 3. Apple organisation 2021

Apple is following democratic management style in the management of the company’s activities and tasks. The company is having functional organisational structure which indicates that Apple organised their activities around the areas of expertise. Earlier the owner of the Apple uses autocratic style in the management of the company structure but with the passing time the management structure shapes through contemporary approach of management.

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Supply Chain of Apple

There is an extensive network cycle that Apple is using in supplying their products with multiple suppliers. The products of the Apple company bring revolutionary change in the technology sector and no other brand reaches to the popularity and selling of the products of the Apple. The company is having diverse sales channels which delivers the product to the customers, enterprise, education and government customers in the 80 nations. The supply chain of the Apple is discussed below:

  • Sourcing- It involves the obtaining of the raw material for developing final products. Apple outsource effectively with the different suppliers from the Asian countries. They majorly source their components from the China through making contract with the suppliers.
  • Manufacturing- It is the process that transforms the products from raw material to finished goods. Apple does very little manufacturing of its own instead they have created contract with various companies of different countries. They components that they have generated go to the different locations such as China, the Czech Republic, Malaysia, Thailand and South Korea. In the countries there are multiple companies who does manufacturing such as Foxconn which is the largest and oldest suppliers of Apple.
  • Warehousing-It involves the storing of the physical inventory of the organisation in order to make sale and distribution. When all the products of the Apple cross the stages of assembling and packaging, they have shipped to the Apple warehouse. Apple is having more than 300 warehouses which also works as the distribution centres. Apple managed their inventory through forecasting demands of the products on the quarterly basis and by analysing products lifecycles.
  • Distribution-It is the process of making product available to the customers or delivering products and services from the company to the potential buyers. Apple is having very wide distribution cycle which includes different companies that make the Apple product available to the customers. Apart for providing their products from the Apple Stores, they have also provided the products at Walmart, target, Radio Shack, Best Buy and Sam’s.

 

Distribution 

 

Figure 4. apple supply chain 2021

Supply chain operations- It all starts from purchasing components and raw materials from different suppliers the company is having more than 800 suppliers for the different material. And then make them shipped to the China in order to assemble the parts of the products. From the nation it directly shipped to the customers and the different outlets.

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Supplying product to the customers

Their sales channels of the Apple to its customers includes physical merchandising and digital merchandising which are discussed below:

Fig5

Figure 5. Apple organisation 2021

  • Physical Merchandising-It is the system that comprises organisations, people and different activities involved in providing product or the services from a seller to a potential buyer. The company apple is having more than 500 physical stores across the globe. Apple believes that buying and selling products of the company physically affects the customers positively as it really helpful in developing brand image in the mind-sets of the customers. They have created physical stores in order to build connect with the people with the brand.
  • Digital merchandising- It involves the buying and selling of the products and services by using online platform to reach to the customers. With the implementation of different strategies and the techniques a company sells its products on online mode. Apple is offering commendable digital experiences through different offers and cashback. They have their own site through which they are selling their products to the customers. With that they have also partnered with different brands in respect to provides products to the range of customers.

From the above information it can be analysed that it Apple is master in the management tasks which can be easily seen it their success. This all information is very much helpful for the learners as it develops their knowledge about one of the biggest organisation in the world. Learners will get to know about the working structure of the Apple company and also about the product they use in their daily lives will get developed.

Most search FAQ by the learners:

  • Which management style Apple is adopting in their organisation?

Answer- Tim Cook the CEO of the Apple company replaces Steve Jobs in 2011 and the managerial style that company is implementing is democratic style which sharply focuses on teamwork and cooperation and encourages growth of the employees.

  • Which model is implemented in the Apple organisation?

Answer- The business model which Apple is applying in their organisation is based on innovation and customer centric approaches. The organisation has created their base designs in a way which outlines innovation and growth.

  • Why Apple supply chain is so impactful?

Answer- Apple have maintained great relationships with their partners in supply chain who provides flexibilities as per the demand of the products. Apple huge production capability allows them to provide product timely.

It’s not surprising that even the kids are aware about the brand image and popularity of the Apple. As in the current marketing situation each and every person know about the existence of Apple company and what they produce in the market. Apple is the brand which is highly recognisable because of its impactful services in the technology sector. Apple was founded in 1965 by S

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