Value chain analysis evaluates a diverse number of areas within a company. It measures firm-level analysis, which measures the business unit, it also looks at primary activities such as inbound logistics, operations, outbound logistics, marketing and sales. It also includes support activities such as procurement, human resources management and technological development. All of which confound the chain analysis itself. Apple is a technological emporium, currently competing with Microsoft on leading technology therefore, their value chain must be organized and should have a very developed logistics department in order to fulfill their goals. Tim Cook, Apple company’s CEO stated that having an organized inventory and logistics (both inbound and outbound) is extremely crucial in reaching all customers and attending their needs. Approximately three years ago, Tim Cook decided to alter apple’s supply chain affecting at the same time, all the logistics and inventory components within the value chain. During an interview regarding Apple’s success in their logistics and inventory department the CEO stated; “Inventory is fundamentally evil. You kind of want to manage it like you’re in the dairy business, if it gets past its freshness date, you have a problem”. Changing inventory logistics has been one of the primary enhancement tools used by Apple in order to enhance both their value chain and customer satisfaction. One of the steps Cook took in his role in managing supply and value chains was their renewed focus on the quality of their product and management of costs, this allowed Apple to both ship and make their products available to customers at a reasonable time. One very important aspect we must take in mind into how Apple has managed to positively enhance their value chain is the fact that they are known for working with a diverse number of suppliers from around the world including Asia, especially China, some parts of Europe, and the US. This helps them with the inbound logistics department of the value chain since they get their products from all these suppliers which are later assembled in China and transported to their warehouse facility in California and finally distributed to customers .The company’s operations are carried by approximately 93,000 employees around the world, specifically in the Asia scope where most of the major product operations take place. Another vital aspect of their value chain enhancement is Apple’s investment in marketing. Thanks to the diversity of channels they use for distribution, Apple has been able to advertise and market their products successfully which has added a lot to customer’s feedback. Above all things, Apple’s customer service has been key not only in enhancing their value chain but also attracting millions of customers around the globe. Apple has had exemplary service ever since they first began their innovative business, their sales assistants are well prepared and trained to serve people from all ages, not to mention the fact that Apple stores around the world are always populated with guests purchasing the newest items they have to offer. Needless to add, Apple is certainly a business that models an incredibly organized and enhanced value chain, leading them to continuous success in the business they are part of, and their incredible customer service makes them fall within the top of the list when it comes to retail and technology. A company’s value chain and service is what makes them stand out from all other businesses around the world. Throughout the years we have evidenced how Apple has surpassed expectations in retail and in keeping an organized and enhanced inventory not to mention all the measures Cook has taken along with his team to make Apple successful to this date, and let us not forget what a famous entrepreneur and tech innovator once said: ”Your most unhappy customers are your greatest source of learning”.
References:
http://panmore.com/apple-inc-operations-management-10-decisions-areas-productivity
https://prezi.com/a23yvk0pbhbc/apples-value-chain/
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