Home' MHD Supply Chain Solutions : MHD Mar-Apl 2016 Contents F
ounded on 1 April 1976, Apple Inc. is
an American multinational technology
company headquartered in Cupertino,
California that is concerned with the design,
development and sales of consumer electronic
products, computer software and online services.
Its best-known hardware/software and
services products are:
• Mac PC.
• iPod portable media player.
• iPhone smartphone.
• iPad tablet PC.
• Apple Watch (the SmartWatch).
• Apple's consumer software, including OS-X
and iOS operating system.
• iTunes media player.
• Safari web browser.
• iLife and iWork creativity.
• Productivity suite.
• Its online services, including iTunes Store, iOS
App Store and the Mac App Store.
On 25 November 2014, Apple was the largest
publicly traded company, exceeding US$700bn.
It employs 115,000 employees, its annual
revenue in 2014 exceeded US$182bn, and has
been voted the most valuable brand in the Best
Global Brands report.
Steve Jobs’ strategy in
Steve Jobs was ousted from Apple Computer
and he set up NeXT computer. In 1997, Gil
Amelio, the head of Apple at that time, decided
to buy NeXT and, consequently, bring Jobs back
to his company.
Steve Jobs appointed Tim Cook to improve
the company's distribution and supply system
and launched an online store. Steve Jobs reor-
ganised the product mix of the company and
restored the system.
Previously it had 15 products, but Mr Jobs
subsequently developed only three product
lines. These included:
a. A new line of iMacs.
b. A new product, the iPod.
c. A new iTunes platform.
Steve Jobs' innovation strategy
Strategic alliance with Microsoft
Steve Jobs and Bill Gates agreed to have
powerful strategic alliances, whereby the iMacs
can also use Microsoft Windows software, and
that Mircrosoft would invest $150 million in
the ‘new’ Apple Computer company. This is an
important and potent alliance.
Steve Jobs needed to build an ‘economy’
around the Apple products, and he realised the
power of ‘cloud computing’ - using the ‘cloud’ to
create an economy for all Apple products.
The cloud platforms would provide the vehicle
for success in innovation.
Supply chain effectiveness
The key advantage of Apple is its supply chain
effectiveness, and it is clear that this strategy
• Savings in time and resources through
synchronisation of its design and
• Savings in cost structure over the product
lifecycle of its products.
• Ability to execute speed to market in a
fast-moving consumer product company.
• The ease of implementation of strategies
through the alignment of business strategy
that can ensure high business performance.
Apple is able to utilise an efficient supply
chain, whereby the market that has intense
competition is unable to compete with Apple.
Hence, the other competitors will need to
compete with Apple on price; however, Apple
will be able to charge a premium over its price,
because of the efficiency of its supply chain.
It is well known that businesses that compete
solely on price will not be able to survive in the
Jim Cook’s strategy in
What follows is an analysis of Tim Cook's strategy
in the transformation of Apple Computers.
Disruptive acquisition technology strategy
by Tim Cook
Jim Cook is constantly reminded of Steve Jobs
as an innovator. However, Jim Cook realised that
the mobile phone is mature and he will need a
new paradigm shift to keep the company’s inno-
The financial results have proven that Jim
Cook is able to set record revenues after Steve
Jobs had passed away, and Jim is constantly
looking into the aura of innovation, as Jim will
need to establish whether the company will still
be the best designer globally.
Jim Cook’s relentless strategy to ensure inno-
vation through acquisitions is reflected in the
following after Jim Cook’s taking over from Steve
Jobs: as of 3 May 2014, Apple had completed
24 acquisitions in various technologies.
Left: Apple's headquarters at Infinite Loop in
Cupertino, California, USA. Joe Ravi photo,
CC BY-SA 3.0, https://commons.wikimedia.
DAVID ROGERS AND ROGER LEE
A CASE STUDY OF APPLE COMPUTERS
MHD SUPPLY CHAIN SOLUTIONS — MARCH / APRIL 2016
Links Archive MHD Jan-Feb 2016 MHD May-Jun 2016 Navigation Previous Page Next Page