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CASE STUDY ON

SUPPLY CHAIN MANAGEMENT OF


APPLE INC.
PRESENTED BY:
PRATISTHA THAPA; FARIYAD ANSARI;
NASIR ANSARI; HITEN KR. SHAH
MBA 2ND SEMESTER

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INTRODUCTION

• Apple is a technological corporation which focus on designs & manufacture


products to service customers.
• Located in California, America
• Founder of Apple Inc.: Steve Job on April 1st, 1976
• Present CEO is Cook Tim
• Products: Macintosh; iPod; iPhone; MacBook; iPad

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Contd..
• Innovative company from 2006 to 2008
• Apple total revenue in US $229.23 billion 2017
• Apple sales 40 million unit per year, in which 110,000 iPhone
per day.
• One of the largest company in the world by market capitalization
and most valuable technology.

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SUPPLY CHAIN NETWORK

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CORE COMPETENCIES OF APPLE INC.
• Think different :Today, the iPhone challenges the definition of a phone and
the iPad challenges the definition of a netbook or even laptop.
• Buy different : Visit an Apple store, and you’d almost think that it was
designed more to create a clubhouse for Apple enthusiasts than to actually
sell the company’s product.
• Apple greatest core competency is knowing how to implement elegant but
functional design.
• Other companies have been trying to intimate , but not quite successfully.

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STRATEGY ADOPTED BY APPLE INC.

• Differentiation Strategy: Unique features and characteristics; Superior quality; Innovation

• Branding Strategy: loyalty; good reputation; luxurious; warranty and guarantee and trade in
program(3R’S)

• Pricing Strategy: Premium Pricing which helps to maintain the high end image of the
company and its product.

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CONTROVERSIES & CRITICISM

• The iPad — Women rejoiced when Apple announced the release of a seemingly
futuristic sanitary napkin, the iPad, in 2010.
• Working conditions —Accusations of severe working conditions and instances
of child labor recently has since prompted Apple to allow inspectors from the
Fair Labor Association to access and report on the factories.
• One of the biggest recent criticisms of Apple, and one of the reasons its stock
price is down more than 30% from a year ago, is that it can't innovate anymore.

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CHALLENGES

• Global economy could affect the Company


• Inventories can become obsolete or exceed the anticipated demand
• Some components are currently obtained from the single or limited sources
• Some custom components are not common to the rest of the industries for eg slow
motion
• Company also relies on its partners to adhere to supplier code of conduct

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RECOMMENDATION

• As Apple Inc. has grown relentlessly(Harsh way) but in competitive market it


should be in smooth way.
• As Apple must be highly concern with quality as well as social values .
• Apple should concern with premium pricing as well as reasonable pricing

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CONCLUSION

• As of August 2011, Apple is the largest company in the world.


• supplying products that are not seasonal and have a life cycle of more than 12 months.
• They are very innovative and early adapters.
• synchronizing data between the central warehouse and its own stores and customers, making
operations more efficient and cost-effective
• outsourcing manufacturing and as a result reducing the manufacturing cycle time
• reducing the number of key suppliers involved in manufacturing, shipping and storing

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THANK YOU!

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