Logistics and operations management Apple Inc Case Study

Question: Describe about logistics and operations management in Apple Inc. Answer: Introduction: Apple Inc. is one of the prominent brands in the domain of electronics and communication. Apple, since its inception had taken the world by storm. It had created an indelible impression in the minds of its consumers and target audience by and large. The founder of Apple was particularly clear about the companys products, services and solutions. Innovation is the keyword s far as the firm is concerned. Similarly, the organization boasts of competent and proficient workforce who is responsible for creation of marvelous products which are hard to imitate by the rest of the industry. Apple Inc. which was previously known as Apple Computer, Inc. is a conglomerate which creates and consumer electronic items, software, consumer servers and also functions as digital dispenser of media content. The company owns retail stores termed as Apple Stores. Apples products and items rake up figures that are not only hard to surpass but also create new records that set the tone for the market and indus try. Apple Inc. indulges in laying out a robust design for its products and solutions which empower the firm to form an extensive structure for the performance of the items and solutions. Discussion/ Analysis: Importance of process design: For any product, solution or item to succeed or prosper it is crucial for the firm to devise a design of process of the concerned product or solution and make it available in the business domain. At the outset, it is important to note that Apple Inc. engages in building of quality design of the process based on the product. Here, the product considered is Apple iPhone which is one of the best products of the company. Apple functions in a complex environment which is filled with esteemed competitors and players (Akter et al. 2016). With over countless mobile phone companies operating in the domain, the competition is obviously fierce and cutthroat. Apples products exude a level of precision which makes the item standout in the crowd offering similar things. The management of the company believes that the craftsmanship involved in manufacturing of its products could be well compared to that of a finely crafted watch. In order to avoid being slow and low in the competition, Apple had up ped the ante in the area of build quality which had been its area of expertise since a long period of time (Almeida et al. 2015). The manufacturing brilliance and exceptional skills that goes in making of a product is enough for any gadget enthusiast to pause before Apples products and solutions. The process design encompasses nitty-gritty of manufacturing of design of a particular product which in this case, is iPhone (Balsalobre-Fernndez et al. 2015). Apple had constantly been on an innovation drive as far its products, services and solutions are concerned. In order to build a product of Apple, which comes with a certain proportion of fit and finishing, and also manufacturing erudition Apple had to build up production processes which the management terms as most complex and also ambitious. The process design is laid in such a manner that not only captivates the target audience but also creates further avenues of expansion and enlargement of its territory (Chiang and Che 2015). Pro cess design of any product and solution should be trouble-free and uncomplicated, thats what the demand of the market says. Further the design should have intuitive features and also easy to navigate amongst its various applications and features. Nowadays, firms have adopted the policy of Less is More while creation or formation of design of its products and solutions. The same also would facilitate Apple to stay ahead in the race with regard to its players (FernNdez-LPez et al. 2013). Aims and objectives: To begin with, Apple offers premium products at premium prices. The highlight is the fact that the firm in spite of such premium proposition maintains large market share including high profits. 1) The first and foremost objective is continuation of creating products, solutions which would create landmark in the industry. Hence, the objective would be to create and sustain such performance, the firm will need to have a strong research and development team who will ensure no complacency in their end sustain with existing growth rate (Balsalobre-Fernndez et al. 2015). 2) Secondly, Apple aims to innovate and dictate the genre of future technology. Technology is a concept which is ever changing and not static. The strategy in this case, should be to pursue success of having best products and services. Apple inc. must study the entire market and take the feedback of consumers in consideration while improving upon their products (Akter et al. 2016). 3) Thirdly, the firm may seek to go on an expansion drive. Apple stores or outlets are visible in nook and corner of the world. The objective would be to have stores to increase sells substantially. The company may contemplate of commencing of introduction of units or outlets in various large markets and spread out externally wherein, population and product demand are the basis (Wang and Nien 2016). 4) Further, the firm may place its items in various retail stores, e-commerce websites and ensure that mobile devices are featured in different mobile carrier. Building a brand is deemed to be toughest challenge in the industry. Apple aims to create hype for upcoming products. The strategy to be formulated could be that of usage of annual symposium and proceedings to publicize release and necessary information of each latest product or solution prior to its initiation in the market. 5) Apple Inc. has changed the perception of phones, tablets and so on. There is no superior name in the technological arena than Apple and it is expected to go bigger and better with time. The company should aim to assume itself as a trendsetter, penetrate new merchandise markets previous to competition and convey existing items and solutions at an unmatched quality standard (Frow et al. 2015). 6) The firm should aim to increase the profit margin. In spite of high and low share of markets, it is the concerned firms margins that make or break for the organization. The strategy in this regard could be to persist with drive to lesser cost thereby making products and in keeping with sustenance of the unchanged retail price in the market (Wolfe et al. 2016). Product stages of Apple: Amongst the different stages of an entire product stage of any organization, which comprises of introduction, growth, maturity and decline, Apples product of iPhone is in the growth stage. The reasons and manifestation of this statement is laid below. Fast growth in demand: Since inception, Apples iPhone have generated huge interest and attracted imagination of the masses. Apple iPhone will continue its growth ride amongst both individual as well as enterprise customers. As a matter of fact, the Apple iPhone created a record worth 20.2 million unit consignment in a year and in next year the figures amounted to 141.7% which is in excess of 12 times than the global average level (Medhi and Mondal 2015). In conclusion, it may be commented that the demand for the iPhone series products is growing and expanding significantly indicating that the products could be likely to be in the growth stage as far as product cycle is concerned. High profit margin: Apples iPhone recorded figure worth 57.8% in 2010 and with the projected reduction in cost of manufacturing alongside increasing scale of production, the sale price of iPhone do not descend as per the anticipation, and, therefore, it may be deduced that the turnover margin does not reduce with time but in distinction, it is maintained or increased (Monden 2015). Uncertainty: The iPhone is experiencing growth stage wherein the consumers would gradually accept the product, and hence there would be a growth in the demand for the same. Having said that, demand could also be somewhat uncertain owing to incapability of predictions in future demand of the item and also in its stage of maturity. Also the very nature of the market and also the nature of product is fast changing along with high innovation rate which contributes to uncertainty in demand. By this the firm may amass more margin of profit and estimate the future demand (Gaubinger et al. 2015). Pricing: The margin of profit of Apple iPhone is on a high in keeping with other brands with more than a halfs profit margin. Hence, the consumers are willing to bear the pricing of the product since a majority of them believe it to be appropriate (Wonglimpiyarat 2015). Selection of Supplier: Regarding supplier selection, the firm has zeroed onto the finest and best in business OEM manufacturers and suppliers thereby keeping the focus on quality and flexibility. The largest touch screen provider of iPhone is Samsung, which has itsown reputation. The stages of the product of iPhone state the firm is likely to maintain this ongoing growth rate, and the same should remain intact in spite of consumer uncertainty and other paraphernalia existing in the industry (Wang and Nien 2016). Analysis of performance objectives: Apples performance and concentrated growth tactic is in direct relation to that of the companys approach with regard to marketing, pricing and various avenues of business. Apple Inc. being a prominent company worldwide illustrates that the performance policy is a major indicator of lead against other organizations, namely, Samsung, Microsoft and others. Also, Apples thorough strategies for augmentation bear the companys capacity to uphold its solid state of affairs in the international market (Kumar et al. 2015). With a towering rate of modernization or innovation, and prominence on distinction in design of merchandise and products, Apple thrives even with the element of high value. This unbeaten situation specify about Apples efficacy in usage of its standard strategy and important growth plans and policies. Apples basic strategy of extensive differentiation enables the business to stand out amongst its players. Segregation in utilities and design offers support to the firms goal th at of being a leader through innovative services, solution and products (Frow et al. 2015). Innovation is in the very genre of Apples operations. However, to develop its purpose of this broad stratagem, the establishment must assertively penetrate markets, principally in developing nations where Apples marketability aspects are however limited. Apples strategy of growth is that of product development (Kim et al. 2015). Penetration of market and market development falls in second and third places, respectively. These exhaustive growth initiatives are in concurrence and support Apples basic strategy. The firm assumes importance in development of product by virtue of innovation. However, for improvement of performance, the company should accentuate more market, penetration followed with development (Wolfe et al. 2016). Laying stress over these important growth strategies can improve Apples buoyancy against insistent players like Samsung and others. Product improvement demands that the company is ought to provide striking products and solutions for augmentation of its market sh are and performance. Apple implements thie exhaustive growth tactic by virtue of innovation in its research and development or RD functions (Grace et al. 2015).The firms missions a well as vision statements cite this very aspect. Through this aspect, Apple envisages innovation as game changer. For instance, the firm persists with innovation of products like iPhone. In this approach, the organization also forms new products, solutions for the market wherein it operates. The growth of Apple Inc may be attributed to new products and items which boost the firm to accomplish more revenues. This policy is in total conformity with the companys overall strategy by maintaining focus over exclusive Apple products which may boost profits (Al-Debei et al. 2015). Conclusion: Apple Inc. as a firm that excels in its products, services and solutions. All its products and services bear merit of the firm. It is very clear from the above discourse that innovation is the factor that drives the firm to reach and accomplish new heights and thereby creates a yardstick in the industry. Apple Inc. engages in a robust design process which instigate the firm to be in a separate league altogether. Apples iPhone is yet another brainchild of the exceptional think-tank of the organization which never fails to catch the imagination of its loyal consumers and public by and large. Apple Inc. operates through an innovative process design which is clinical in the firms performance and also its products, services and solution. Decades and years have witnessed the brilliance of the firms ability which reached its pinnacle during the tenure of the firms former CEO Steve Jobs. The product cycle that of iPhone experiences a steady growth at present. Though there are uncertainties i n the market and industry by and large the firm never fell off the orbit that of growth and development. 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