Operations Management Apple Inc. Case Study Solution
Introduction:
Apple was the first successful personal computer and popularize of the graphical user interface. Headquarters are located in California. Apple incorporation engages in the design, manufacture, and marketing of the mobile phones, media devices, personal computers and portal digital musical player. The firm offers products and services for the iPhone, iPad, Mac, iPod, Apple Watch, and Apple TV brands. Apple software includes the Mac OS X operating system, iTunes media browser, the iLife suite of multimedia and creativity software.
Apple has extended into a very intricate Company that specializes not only in computers but more than computers. Apple offers two other major products (iTunes Store and Apple TV).
Apple Inc. committed to bringing the best personal computing and music experience to students, inventive, proficient, businesses, government agencies, and consumers through its innovative hardware, software, services and Internet offering. Company's products are sold online, through third party Wholesalers and also its chain of stores. Apple own almost 125 retail stores in the United States, and as well as in Canada, Japan, and the United Kingdom.
Apple is a consumer goods company and analyzing its value that requires understanding its products and services and this may be tough because Apple competes with different companies (IBM and Compaq) throughout the industry.
Company and Industry Background:
Apple Company was co-founded by Steve Jobs in 1976 under the name of Apple computers Inc. (Young & Simon, 2005). But as per the (Apple Website, FAQ), Apple was incorporated in 1977 in California. The Company was founded in Cupertino, California, United States and Headquarters in Infinite Loop, Cupertino, USA. In 2001, Apple broke the obstruction with the iPod and becoming the dominant market leader in music players. Apple also joined the phone industry in 2007 with the iPhone, which has also been very successful. Apple was moving to the Apple 1 to the Apple II, the launch of the Macintosh and the revolution in the DTP industry. Apple I Computer, without keyboard or power supply, for a computer hobbyist club. Wozniak began work on Apple II designed to ask to a greater market than computer hobbyist. In 1979 Apple introduced the Apple II+ with more memory and more feature than the Apple II and easier startup system and the Silentype, the company's first printer. Apple has been the initiate of the computer industry, producing everything from hardware such as the iBook (in the early 2000s), iPod and iPhone to innovative concepts like the App Store.
Apple is considered as one of the most trustworthy companies in the PC and digital industry all over the world. It has received many awards and appreciation in many different categories and is ranked as the world's most admired company repeatedly for last three years. There is great effort behind Apple's success in the market. Apple has brought a significant change in our day-to-day life, simplest being buying music to contributing in the area around us. (Christine Thompson). As BMW CEO Norbert Reithofer puts it, "The whole globe apprehended its breath prior to the iPad was announced. That's brand management at its very best."(Fortune Magazine, March 4, 2010). Apple started as "Apple Computer," major industry Apple was and still is operating in the Computer Industry. Apple Computer released its first computer in 1978 and quickly become a market leader in PC industry (Yoffie & Kim, 2010). Apple lost its position as a market leader because of other vendors like IBM and Compaq gained market share by providing cheaper products. In the 3rd quarter of 2010, the PC industry characterized an oligopoly where the four big companies have the market share of 53.2% with HP as the market leader with 17.5% share of the market (Gartner Dataquest). From onwards Company's growth has been started growing (Revenues were 170.9 billion in 2010), and as per the data of 3rd quarter of 2016, Apple Company has reported as the decrease in revenues compare to competitors, despite revenue increase by its most of the competitors by 3.54% recorded in the same quarter. (Increase in revenue growth of Apple in Quarter/Quarter).
Operations Management Apple Inc. Harvard Case Solution & Analysis
How Company Use SCM and TQM:
Apple is famous for innovation and design, the primary factor behind the success is inventory management (Supply Chain), and ranked as no: 1 in the world each year. Apple purchases components and materials from different suppliers, then shipped those parts to assembled part in China, from their products, directly shifted towards consumers (who bought from Apple online store). For using different distribution channels like retail stores and many other distributors,
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