Apple Computer, Inc - Essay Example

Apple Computer, Inc In the mid 90's there was a shortage in the production of computer parts. Almost all the computer manufacturing companies were effected and Apple was the worst effected, since Apple received all of its parts from one supplier and they were custom designed. Although there was demand, the customers were not satisfied since the company lacked the major parts in the system. The sales team was blamed for this disaster but it was the lack of a good supply chain practice that led to this.

The company then realized this and adopted a better supply chain management (SCM) policy.One of the most widespread SCM definitions explains this kind of management as a crucial business process integration starting from commercial user and including all goods, services and information suppliers, who can add value for any customer or other person concerned.SCM becomes more and more popular among the western managers. It is a synonym of organizational excellence. Apple managers try to use it too.

2005 is going to be a big year for Apple. Soon, we're going to see updated iPods (probably with wifi), updated G5 (possibly with dual core processors and faster speeds), cheaper iMac G5s (where'd the computer go now), wireless media accessories for your home (AirportExpress on steroids) and the operating system that will be leaving most people asking the question - why Microsoft Windows - Apple's OS X 10.4 Tiger expected out next month. Apple is working with its supply chain to find alternatives that are environmentally friendly and provide functionality equal to that of conventional backlight lamps.

So let's try to analyze Apple's predatory supply chain with an iPod example. Steve Jobs had made the smart moves, including the small footprint, the iTunes jukebox ease of use, pricing, and the ability to support music, pod casts, and digital photos. This was all before the launch of the new iPod, capable of storing 150 hours of video. But the smartest move was buying most of the world's supply of flash memory. Several news articles had been reporting that Samsung's South Korean competitors were alleging that the chipmaker was supplying flash memory chips to Apple at half the market price.

It has been widely reported that the two had planned an investment partnership, worth $3.8B, in which the companies would have set up a NAND flash memory line in South Korea to supply Apple's line of iPod audio players. Apple pulled out of this deal earlier in the week, but its interest in this strategy is still high. Another article reported that one company had taken apart the 2 GB iPod nano and determined that the cost of parts and assembly totaled about $100, leaving Apple with nearly $100 in gross margin.

Speaking about logistics, we have to emphasize that Apple Computer has embarked upon a new distribution strategy that will allow more computer resellers to buy computers directly from the company, thereby cutting out the markup added by distributors.In fact, Apple develops foreign markets with *the hands* of IMC (Independent Marketing Company) - independent companies, who are empowered to use "Apple" name, its trade marks etc. The effectiveness of IMC organizations was called in a question many times.

Such a works organization of trade delegates is good for little upcoming markets. The weaknesses of such company become apparent on difficult but perspective markets.For example, after C.I.S failure (Apple distributor in East Europe and Asia), Apple assigned an agreement with Distribution Company DPI.Also Apple located the notebook computers manufacture in Taiwan. Quanta and Compal has contracts of business-systems making, Elitegroup Computer Systems (ECS) produces mobile computers for consumers segment of iBook series.

Citigroup analyst Richard Gardner informed of an interesting fact about the presentation of new personal computers on basis of Intel processors. According to his words, Apple will present its Intel-notebooks in January 2006. This event will take place on annual Macworld San Francisco conference from 9 till 13 of January.Bibliography1. http://whitepaper.intelligententerprise.com/shared/write/collateral/CST/50828_70402_35646_!QVM6MA007ZQKApple_0404.pdfksi=1146822&ksc=12330003592. http://www.parshift.

com/Essays/essay018.htm3. http://www.gsb.stanford.edu/news/bmag/sbsm0511/feature_supplychain.shtml 4. http://news.com.com/Apple+revisiting+failed+strategy/2100-1001_3-203662.html