Apple inc.

Background of Apple Inc

Apple inc. is a based American company that manufactures and designs Smart electronic products which range from software applications, hardware to other consumer electronics. The company has a a superb Macintosh pc line, Mac Operating-system X, for its exceptional dependable customer base making them significantly stand out, the iTunes multimedia request and the iPod personal very good music player. The business has its bottom in Cupertino, Califonia, featuring its CEO and creator to be Steve Jobs, the business can conquer its chest to presenting 284 retail locations growing across 10 different countries.

On the1st, of April 1976 Apple was founded by Steve Careers, Steve Wozniak and Ronald Wayne to sell the Apple I pc kit. Steve Jobs was thought to own 45% of the company, Steve Wozniak with 45% and Wayne with the remaining 10%

Apple with time has brought in regards to a significant reputation in the buyer electric aspect. The users of Apple gadgets tend to be fascinated about and faithful to the products and on the other side those who have no experience with Apples product most times criticize them an being too expensive. On August 15, 1998 Apple released the iMac and was able to cover up its past failures which include the first Apple lightweight, that was to wrong looking and large and the Newton's, Apple in going into the PDA market. In 2001, after many years of rigorous developments, Apple came up with Mac Operating-system X a common operating system targeted at both consumers and experts. The Mac Operating-system X was a different re designs from its earlier the Mac OS 9 that could not constrain the energy of UNIX and will be offering a streamlined user experience with a simplified GUI (Graphical INTERFACE). The iMac line of professional computers combined with Mac Operating-system X regained Apples success coupled with the discharge of the iPod lightweight digital audio tracks player, later in the entire year which was just to crown its productions. The historical success of the iPod created a platform for future product, including the best mobile device ever sold, the iPhone and the Apple pc Book line of portable pcs and the latest release of the iPad on the 27th of January 2010.


This report is dependant on carrying out a strategic logistic examination of Apple Inc. with a view to growing opportunities to build up logistic functions of Apple Inc. in this cognizance to the swot research, five forces analysis and Porter's Common strategy, Apples framework work. Practically all these strategic models were done from the logistic perspective. This report attended to the main strategic methods to logistics that you can do by Apple Inc. This record also look into management problems with regards to the implementation of a new logistics strategy especially from the perspective existing capital, technical and recruiting. Finally, this research also helped to judge trend and the value of new technology especially with respect to the future logistics strategy of new companies, critically evaluative the tactical significance of new technology innovations and business tendencies on future logistic strategies for Apple Inc.

It's Business

Apple Inc. success in the IT world is as a result of the huge selection of products varieties portfolio and the effectiveness of the Mac Operating-system X technology.

  • Good brand loyalty.
  • Giving a face-lift to desktop and notebook lines.
  • Well known hardware and software products, the ipod touch, iPhone, Macintosh Computer, Apple pc operating-system, iTunes.
  • Apple Inc. sells a variety of third-party Macintosh (Apple pc), iPhone and iPod compatible products, including program software, printers, safe-keeping devices, loudspeakers, headphones, and different other accessories and peripherals via its online and retail stores, and digital content and applications through the iTunes Store.
  • Apple Inc. offers to consumer, small and midsized business, education, enterprise, authorities and creative customers.
Swot analysis

The Apple SWOT Analysis the source for the most notable level management and data information. The analysis puts because the organizations essential business framework and everything its activities and gives the upgrade of the income lines and strategy. (Data monitor Apr 2009, page 30)

  • Apple Inc. major in developing its software and hardware.
  • iTunes Music store generates more revenue and the ipod touch which includes easy convenience on the Glass windows platform.
  • Apple has an alcove audience that provides the business some deceleration from the immediate price competition.
  • Providing a complete new dimension to desktop and computer lines.
  • Its online gain access to technology can be used to promote product understanding and sales.
  • Has more maneuverable low arrears ability.
  • Excellent brand loyalty is associated with Apple Inc.
  • Affiliation with Intel computers in 2006 till time.
  • Powerful research and development section.
  • No strong connection between Intel and Microsoft.
  • Weak domination in business sector.
  • Most Apple product has a very short life circuit which causes profits to give attention to the discharge of new products and services.
  • Having to major its market in the education and posting not in other marketplaces.
  • Slow change on popular products.
  • Its market is missing way behind its Major rival Microsoft.
  • Past communication between the founder and staff which caused its lack of reputation.
  • Large market population which tend to be brand driven.
  • High rate of trojan on personal computers to give a constant market because of its anti pathogen software's.
  • The ties of apple others are weak, Apple can form good marriage for joint projects.
  • The high rate of music downloads and Mp3 are significantly marketable.
  • The sales of computer via the online program are on the increase.

The laptop market development is increasing so Apple Personal computers should focus on the improvement and development of new models to meet the needs of specific customer.

  • Incompatibility with other organizations software's.
  • Dell, HP, Sony and Toshiba are major opponents facing Apple in the laptop sector.
  • Free download of music and other software is normal with other sites which includes high impact on sales for online store sales of music and MP3 download.
  • High prices of its product compared to its competitors which make them loose their market.
  • The long lasting tough economy may impact the sales of the company due to raised prices of the products and services.
  • The starting of the new Microsoft vista home windows 7 which is getting market talk about.
  • Speedy change in technology is on the increase.

The SWOT analysis above provides us a view that Apple Inc. has talents that it can use to further develop the brand and invariably increasing its market and gaining an advantage over its major competition. Apple is a company with great success, the ipod device music player sales increased its second quarter profit to $320in June 2005 same using its Macintosh computers. The ipod touch allows the company to in viewing other segments to go into. Apples Mac word books also donate to the Apples high income. The brand name is one of the very most popular brands in the world, that provides good customer views of its products in the customer's satisfaction.

Early in 2005 Apple made an announcement on the putting a finish to its relationship with IBM the dealer of the micro chips and swap to Intel specialists commented on saying it may make them loose their customer's misunderstanding. There exists weight on the company to pump up the price tag on its Mp3 and music download from the music industry since almost every other company make their income from iTunes than selling their compact discs, |Apple has made sales of 22million on sales of its very good music player the iPod and additional sales of 500million on the downloading of tunes from its iTunes store. This shows a statistic of 82% of reliable downloaded music in the US.

The development of the iTunes music store to help ease users on tracking their music and downloading it, this was made available, and by the use of the USB cable television. Software was made in such a means it allows the pausing of music on incoming calls. There's a great deal of new technological strategies alliance chance of Apple. another new software is the Podcast which can be downloadable mass media which is done via the internet and plated again on later occasions that suits an individual. It has a free of charge membership which Apple can make it a paid registration to create more income

The biggest fear of Apple Inc is the high level of competition in the IT market segments. As a successful company the speed of competition is high therefore the company has to work rigorously on its market research in order to keep and preserve its position in the market The vast recognition of iPod and Apple Apple pc are on high demand, and you will be influenced if economies commence to falter and demand comes for their products. The level of close product substitution result in the impressive and fast paced IT market. There for the ipod touch and MP3 are in the development today, but only yesterday it was CD, DAT, and Vinyl. The future technology might be completely different and the music player could be displaced by the Cordless technologies.

Five forces analysis

The five pushes strategic analysis originated by Michael Porter. The Five causes framework is trusted as a kind of industry evaluation b (Johnson et al. , 2005). The knowledge of the way each one of the five causes allow organizations have the basic insight in allowing them model the best fit strategies to be successful in their market (Thurlby, 1998).

Apple works in two principal industries:

  • Computing - Hardware and Software
  • Delivery of Entertainment and Media

Apple is definitely under powerful competition within the computer, software, and entertainment market sectors.

Figure 1: Five causes analysis for Apple Inc


Apple Inc top rivals include Dell, Microsoft, Horsepower, Alien ware, Gateway, IBM.

Strategic positioning

Strategic position is targeted at achieving profitability and competitive benefits. Apple's tactical position is to offer users the best computing experience by innovating in hardware, software, and Internet offerings.

Environmental Evaluation of Apple Inc.

Apple, Inc manages as a multinational firm that designs and produces gadgets and software applications products. The exterior environment is the corporations and people outside a small business organization that have an effect on it; these include national and municipality, trade unions, opponents, customers, suppliers, etc. The exterior environment is one of the contingency factors that needs to be taken into account in designing a business. ( Ed. Jonathan Legislation. )

The exterior environment has three components: the remote macroeconomic environment, the industry environment, and the operating environment within the organization itself. There are fundamental macroeconomic parameters that influence Apple: inflation, unemployment, and competition.

The first key macroeconomic varying that impacts Apple is inflation. Inflation within an economy could possibly be the result of an increase in aggregate demand that is unaccompanied by an increase in aggregate source. A rise in any element of aggregate demand can result in inflation. One reason for a sudden, unanticipated climb in aggregate demand can be an unanticipated rise in the way to obtain money. Inflation can also derive from a reduction in aggregate supply occurring when businesses realize that creation inputs have increased in cost. Such occurs when labor costs and the price of recycleables such as plastics or metals. Lowers in output can likewise have a negative impact on aggregate resource and, therefore, result in a go up in prices. Apple has been around a situation where in fact the aggregate demand for the ipod itouch and the iPhone have been really high however the prices for the products it as an acceptable cost to the consumer.

Another key macroeconomic varying that affects Apple Inc is unemployment. The unemployment rate is the ratio of men and women who are not working but who are actively seeking job. Shifts in labor market that can create unemployment. At any moment the unemployment rates varies greatly among countries. Two reasons for the difference are

  1. Different natural rates of unemployment and
  2. Nations may be in different stages of business routine.

McConnell C. R. and Brue S. L. (2004, p. 140). Between 2001 and 2006 the United States unemployment rate was considerably less than that of Canada. If the unemployment rate is high then which means Apple may have had to place off a couple of employees due to economy. If there aren't many employees working at Apple then efficiency will decrease. Wages are a business variable that depends upon the unemployment rate. If the market is bad and Apple had to place off employees then your wages of the prevailing employees may not go up for an extended time period or may even go down.

The last key macroeconomic varying that influences Apple is gross domestic product (GDP). The gross home product (GDP) is a simple measure of a country's economical performance and is the market value of most final goods and services made within the edges of a nation in a time. It is a fundamental measurement of development and is frequently positively correlated with the typical of living. If there is an announcement in the news that there has been an increase in the GDP this will be an indication that the economy is, in all likelihood, in a rise phase. If the GDP quantity is comparatively weakened or declining, this demonstrates a negative economical environment for the united states, indicating a stressed out economy. The planet economy is depressed and facing a great recession. These facts will lead consumers finding themselves with less throw-away income that will eventually cause them not to spend much usage on luxury products. Apple will be essentially influenced by the hesitant use needs. However, Apple has better placed itself in the market. The advantages of new iPhone with a relatively cheap price is reflecting a good sales technique to accelerate consumption. Apple has successfully sustained a much better profit rate within the last 3 years despite global economy slow down. However, there is absolutely no company that can always increase its profit while the countrywide GDP is reducing.

There are many opportunities and challenges which exist for Apple, Inc. A huge opportunity that Apple has is they start their stores in a sluggish, even-handed way to make sure each is profitable. Others that over prolonged themselves in the increase may have to pull again significantly as their customers are hesitant to spend. That opens opportunities for Apple to negotiate more favorable lease terms in attempting shopping malls. Another opportunity would be that as Apple starts more and more international stores, that sector of Apple's business will be less and less damaged by financial troubles in the U. S. A continuing concern that Apple encounters is keeping the price of their products affordable. Apple's business plan includes prices their products so the consumer can afford them. Despite having the current recession Apple is still making a high benefit from their computers and consumer electronics. Another challenge matching to( www. macobserver. com), "Apple's Mac growth is 3 x the average Computer sales growth, and they've sold 120 million iPods, burying your competition. Apple has branched out in to the mobile phone market getting even more consumer consciousness. As a result, Apple has already established to invest greatly in customer service. Some wonder if they can keep up the pace.

Implementing a fresh logistics strategy within an organization

Apple has historically used a significantly different way than the original Windows and Intel blend. Microsoft provides the Windows operating system to split up downstream hardware providers such as Dell. Apple vertically included both the operating system software and hardware completely under Apple. A consumer working Microsoft Glass windows can choose from a myriad of systems based on the Intel processor chip, while a consumer operating Apple's Operating-system X must purchase Apple hardware.

Apple is adjusting this plan by migrating their microprocessors from IBM and Motorola PowerPC to Intel. Analysts think that the Intel-based Macintosh may be able to run Microsoft House windows applications by the finish of 2006. (Burrows)

In addition to transitioning processors, Apple placed their computer systems as an immediate option for the traditional Microsoft Windows customer. With Apple TRAINING, users may now use Macintosh personal computer Operating-system X or Glass windows on an Apple computer. (Sutherland). By allowing users to perform Windows by using an Intel Macintosh, Apple reduced the turning costs for traditional Computer users. Apple may steal away customers that are willing to pay a premium for something that operates both Glass windows and Mac OS X.

Apple continues to retain a strategic option to certificate its technology to clone designers such as Dell. Former attempts at licensing Apple technology (to IBM, Gateway, while others) failed on accord of Apple's rigid requirements. Many technology market leaders (like a 1985 letter by Invoice Gates to Apple CEO John Sculley) criticized Apple for keeping a shut down structures. Apple cofounder Steve Wozniak criticizes this strategy, "We'd the most amazing operating-system, but to obtain it you had to buy our hardware at twice the price. That was a mistake. "Whether Apple would be inclined to pursue this reversal of vertical integration is unclear. Although such a move would cannibalize some of Apple's own hardware sales, it would provide royalty-based revenue that can address $1 billion each year. (Burrows) Jobs usually sided against licensing Apple technology. He referred to Mac clone manufacturers as "leeches" and he in my opinion killed Power Processing by terminating their permit in 1997.

Increasing inventry

Despite a weakening overall economy and a need to meet customer demand, Apple has had the opportunity to maintain a fast inventory turnover rate. The Apple pc and iPhone manufacturer is relaxing at five days and nights worthy of of inventory on any given day, defeating Dell's a week value of inventory, corresponding to data from UBS.

Other PC producers are having even more trouble complementing Apple's inventory efficiency. Lenovo, for example, is averaging 15 times of inventory, and HP is seated at 32 times. Intel, however, is exhibiting a much slower inventory turnover rate at 89 times, and D-Link is relaxing on a staggering 131 days well worth of inventory.

Apple's quick turnover rate may have been due in part to preparing for its just announced iMac, Mac little and Mac Pro updates. The business released new desktop computer. Models on March 3, and keeping inventory low helped assure that there would be fewer of the prior model machines sitting on store cabinets. While maintaining a higher inventory level can help a company cope with abrupt increases popular, it can also show a company's incapability to adequately measure market affinity for their products. For the present time, it looks like Apple is controlling inventory much better than its competition. (Jeff Gamet)

Future logistic approaches for Apple Inc

The development of Apples coverage device as soon as developed the Apple convergence device will provide an array of functions and powerful handling capability that may be put on the field of health care to enhance efficiency and modernize the industry. Apple should work with medical device companies and caution providers to build up a set of standards for necessary functions for factor in producing the platform.

The device will work as an integral part of an overhauled recordkeeping, attention presenting, and medical administrative system modernized for the twenty-first century. The device and software it runs will make use of appropriate equipment to evaluate, document, and data file measurements, symptoms, and analysis in an easy to get at and fully-portable medical files system. The system will streamline care supplying, administration, and says filing, through the elimination of mountains of paperwork and cumbersome processing systems.


This research gives the reader an overview of the logistics execution strategy followed by Apple Inc and how the organisation can help improve its supply string network now and in the nearest future.


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