As a company that plays a key role in the Information Technology (IT) industry, Apple continues to define the market as a market leader in invention and innovation, cost control, and strategy. The company’s business model is reflective of its business model which requires for the organization to partake in Research and Development (R&D) before manufacturing and launching their product. This ensures that the company meets all the criteria needed to sell the product when launched in the market (O’Grady, 2009).
Secondly, Apple ensures that it invests a considerable amount of funding on marketing and advertising. This ensures that the company remains a household name despite the competitive nature of the industry. In terms of the companies supply chain, management takes the initiative to make Apple products available to customers in various market niches. For example, Apple uses both traditional and modern methods of logistics when supplying their products. This can be seen in the incorporation of social media marketing tools in all its campaigns (Esslinger, 2009).
Global Challenges that they face in their Supply Chain
Firstly, the company experiences a high rate of competition from its competitors such as Samsung, IBM, Google, Yahoo, and Nokia. They thus have a responsibility to manufacture products that are accepted by different markets in the global business market. Another challenge can be seen in the company’s choice of logistics. The company experiences challenges when trying to appeal to different markets which in most cases have different purchasing cultures. Some products are supplied through various liaisons which affects their costs. In turn, Apple may lose clientele to companies like Samsung which have better distributing agents (O’Grady, 2009).
Importance of Aggregate Planning to their Supply Chain and their Partners
Aggregate planning to their supply chain and their partners is important because it prepares the company for difficulties which are experienced by companies when supplying their product. Challenges in this case can be economic, social, financial, legal, environmental, and political. As such, aggregate planning assists the company to practice risk management in areas that may serve as a liability to the company’s overall performance and output (Hamel, 2011).
What role does demand forecasting play in their supply chain strategy?
Demand forecasting is a vital aspect during the supply process. The strategy demands that a company researches the state of each market niche. This looks at the consumers, knowledge of the product, disposable income, preferences, and need for technology enhanced products. The rate of demand guides the company on the features, apps, latest technologies that the market needs. As a result, Apples management is able to create a supply strategy that is based on the patterns (Hamel, 2011).
Explain how Pricing Promotions are used to Change Demand
Pricing promotions are some of the key strategies that companies in the IT industry use to generate a wide market base. This involves establishing prices that appeal to various market demographics while considering the cost of production, packaging, and manufacturing. Promotions are used to change demand patterns by offering competitive prices which reflect on the lifestyle of the consumer. As such, the company comes up with different products which are priced to meet luxury, affordability, and functionality (Esslinger, 2009).
These are some of the key factors that customers consider when purchasing products. Moreover, Apple has to take into consideration the number of companies manufacturing the same products. Providing pricing promotions is one of the ways that the company has managed to maintain its clientele. Hence, Apple remains a market leader as opposed to a market follower.
- Esslinger, H. (2009). A fine line: How design strategies are shaping the future of business. San Francisco, CA: Jossey-Bass.
- Hamel, G. (2011). What matters now: How to win in a world of relentless change, ferocious competition, and unstoppable innovation. San Francisco, CA: Jossey-Bass.
- O’Grady, J. D. (2009). Apple Inc. Westport, Conn: Greenwood Press.
