Presentation on Apple Supply Chain Management

Presented By: Vishal Kalia (PTM1001016)

Presented To: Prof. Sapna Bhandari (Supervisor)

INTRODUCTION
Founder - Steve Jobs and Steve Wozniak founded apple computer inc. in 1976. Incorporated in 1977 In 2007 named changed to Apple inc. Vision and Mission

LOGO HISTORY

The original

The Rainbow logo

The logo reinvented

Objectives and Goals

Over the next 3-4 years Apple would like to increase their product accessibility (new stores). Increase their market share by 30%. Eliminate the need for new products in order to raise sales.

WHY APPLE ?
MARKETING

FINANCE

OPERATIONS

From Financial point of view

Net sales has been increased almost near to 300% within 4 years. Net income has been increased by almost 429% within 4 years. EPS has been raised almost 4 times.

From Operations point of view

Apple as the company with best supply chain practices in the world for the third year running.

From Marketing point of view

HUMAN RESOURCE

ORGANIZATIONAL STRUCTURE

Recruitment policy Compensation policy( individual reward) Training

APPLE MARKETING STRATEGIES

Apples Design Process

When you first start off trying to solve a problem, the first solutions you come up with are very complex, and most people stop there. But if you keep going, you can often times arrive at some very elegant and simple solutions. -Steve Jobs

VISION: Apple identifies needs and use cases to make decisions about function and technologies.

FOCUS: Drops 20 % of non-required functionalities to perfectly design 80 % of key user needs.

STRATEGIES
Promotional Technique:
Surprise element in each product launch. heavy speculation and curiosity regarding the product .

Positioning:
hype surrounding Apple product was created due to its unique advertising, word of mouth publicity by the users and the look and design of the product.

 SELL AT PREMIUM:

 THINK DIFFERENT: Fostering new Apple environment.

COMPETITIVE ADVANTAGE
SIMPLICITY: Technical complexity hidden behind slick and user interface gives seamless experience. QUALITY: Thanks to hardware and software tight integration Apples product offers great quality. INNOVATION: Apple does not depend on its suppliers technical breakthroughs. It can innovate on hardware and software at its own pace.

PERFORMANCE OF THE COMPANY

How did Apple beat Google & Microsoft?

Apple s Retail Stores Stand Out And Have Been Highly Successful

160+ retail stores Revenue per square foot: $2,489

Compared with $971 per square foot at Best Buy.

External Audit
Opportunities

Threats
Companies not seeing Apple as compatible with their software. Dell and HP are major competitors. Increasing competition with music downloads. Dell does not invent but provides computers at a more cost effective rate for customers. Strict product control and vertical diversification.

Increase in worms and viruses on PCs. Large population (Gen X&Y) which are extremely individualistic and name brand conscious. Downloadable music and MP3 players are highly marketable. Increase sales of computers online by 25 percent. Increase sales of laptops by 20 percent.

Internal Audit
Strengths
y iTunes Music Store is a good source of revenue, especially with the iPod and the availability on Windows platform. Developing own software and hardware. Apple s niche audience provides the company with some insulation from the direct price competition. Revamping desktop and notebook lines. Web technology can be used to improve product awareness and sales. Low debt more maneuverable. Good brand loyalty.

Weaknesses
y Weak relationship with Intel and Microsoft. y Weak presence in business arena. y Dependency on new product launches. y Weak presence in markets other than education and publishing. y Slow turn around on high demand products.

y y y y y y

SWOT MATRIX
S-O Strategies Increase awareness through the web of the immunity of Mac products to worms and viruses. Advertise using individuals that will link Generation X & Y to the iTunes and other related products. Using movies and music groups that are geared towards Gen X and Y to promote computers and laptops. S-T Strategies Increase and promote the compatibility to Window operating system. Promote the originality of Apple computers and the different style and stable system that is slightly more but worth the price difference in style, stability and speed. W-O Strategies Increase ties with Microsoft and Intel and their products. Promote to business the safety of having a worm and virus free computer by using Mac. W-T Strategies Improve relationship with Microsoft and Intel so that companies will see them as compatible. Increase productivity and turn around of high demand products to compete with Dell and HP.

SWOT Matrix

APPLEs LOGISTICS AND SUPPLY CHAIN

SUPPLY CHAIN MANAGEMENT - MAIN COMPONENTS

Apple's supply chain judged best in world again

A report by AMR Research has named Apple as the company with best supply chain practices in the world for the third year running.


In a feature exploring the secret behind Apples success, it was found that companys ability to bring together two sides of the supply chain (digital and physical) efficiently and at increasingly low cost.

Digital supply chain is a new media term that encompasses the process of the delivery of digital media, be it music or video, by electronic means from the point of origin (content provider) to destination (consumer). The main processes of a digital supply chain are as follows: 1.) True on-demand product availability 2.) Ease of use and speed for content search and activation. 3.)Pricing and subscriptions 4.) Quality management built on licensing and refunds

APPLE iPHONE SUPPLY CHAIN

From a high-level, we speculate that the following are the material suppliers of the Apple iPhone:
 Samsung: The Singapore facility manufactures CPU and Video processing chips.  Infineon: The Singapore facility manufactures Baseband Communications hardware.  Primax Electronics: The Taiwan facility manufactures Digital Camera Modules.  Foxconn International: The Taiwan facility manufactures internal circuitry. Entery Industrial: The Taiwan facility manufactures connectors. Cambridge Silicon: The Taiwan facility manufactures bluetooth chipsets. Umicron Technology: The Taiwan facility manufactures printed circuit boards.

Catcher Technology: The Taiwan facility manufactures stainless metal casings. Broadcomm: The U.S. based facility builds touch screen controllers. Marvell: The U.S. based facility builds 802.11 specific parts. China facility assembles the hardware, holds inventory, and handles the pick, pack, and ship steps of the fulfillment process.

BENEFITS APPLE GOT FROM ITS SUPPLY CHAIN:CHAIN: Cost

  

Reduced inventories Reduced waste Reduced total manufacturing costs Establishment of a collaborative framework Near real time information flow

 Service
 

CHINA -THE ASSEMBLY HUB OF APPLE

Income statement
2007 2008 2009

Net sales: Domestic International Total net sales Costs and expenses: Cost of sales Research and development (R&D) Selling, general and administrative (SG&A) Total Operating Expenses Operating income Other income and expense income before provision for income taxes Provision for income taxes Net income

$14,683 9,895 24,578

$20,893 16,598 37,491

$22,325 20,580 42,905

16,426 782 2,963 3,745 4,407 599 5,006 1,511 1,511

24,294 1,109 3,761 4,870 8,327 620 8,947 2,828 $6,119

25,683 1,333 4,149 5,482 11,740 326 12,066 3,831 $8,235

And start thinking different from today..