Apple Value Chain Analysis Essays - 893 Words

Value Chain Analysis Before making a strategic decision, it is important for Apple to understand how its activities or products create values for customers. One way to do this is to conduct a value chain analysis (VCA). VCA â€Å"refers to the idea that a company is a chain of activities for transforming inputs into outputs that customers value. The process of transforming inputs into outputs compromises a number of primary and support activities† (Hill and Jones, 2001, p.133). Each value is considered to be a source of competitive advantage. In the analysis, the company is being examined exclusively. SUPPORT ACTIVITIES Infrastructure Apple has an unprecedented cash position; in fact, the most cash held by any technological company†¦show more content†¦Apple as well protects its invention and innovation worldwide by filling patent. Procurement Since Apple is a member of the Electronic Industry Citizenship Coalition (EICC), it works to guarantee fair treatment for its workers. In addition, Apple developed an ecosystem of suppliers to benefits from its strong relationships by keeping them close (Masi B., 2009, p.13). By doing that, it enables Apple to obtain its products and services within limited timeframe (Apple Inc., 2012). Apple, occasionally, evaluates its relationships and enhances its suppliers’ ecosystem if needed. Moreover, Apple introduced a Supplier Diversity Program which is mainly for supporting any potential suppliers. This facilitates the visibility of these suppliers and develops the future relationships (Apple Inc., 2012) PRIMARY ACTIVITIES Inbound Logistics Apple has a partnership with OEM in order to reduce development time, production, material and manufacturing costs. However, Apple supervises the entire process to control its quality (Francisco T., 2011). Operations Apple outsourced to various Chinese manufacturers in order to employ its economy of scale; as a result eliminate the burden of production management. Apple, also, cooperate with other companies including HP and Samsung (Sherman E., 2012). Furthermore, Apple designs its products in-house to eliminate production cost (Masi B., 2009, p.14). Outbound Logistics Apple’s productsShow MoreRelatedThe Value Chain Analysis : Apple Inc.1398 Words   |  6 Pages According to the wiki dictionary, â€Å"a value chain is a set of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market† (Michael E, 1985). Having a value chain is very important for companies nowadays because value chain analysis can assist companies in becoming more competitive in the intense market. Globalization decreases the time and cost between companies in different countries. It also provides convenience for companiesRead MoreSmartphone Industry and Apples Iphone Analysis1350 Words   |  6 Pages Outline Industry Analysis Why? 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