Gateway and Apple final - Gateway and Apple: Two...

Gateway and Apple: Two Different Journeys into Retailing
Abrugar, Coleen
Apusa, Kristelle
Buenbrazo, Kezia
Calar, Paula
Claud, Joshua
Perez, Queenie
Sabado, Michelle
BSMgt 3 – A

Statement of the Problem:
How can the Apple Company provide an efficient Supply Chain Management
plan to avoid the fate of Gateway and also increase sales?

Alternative Courses of Action
ACA #1
Increase budget on research and development on fields of science and
technology to continually provide creative and innovative products to the market.
Pros Cons
-Gives the company a step ahead over
competitors on providing new and quality
products to the customers
-Improves the overall quality not only to
the existing products but future products to
be manufactured by the company
-Gives the company the ability to adapt to
the latest technological advancements and
develop better products through it.
-Budgeting will be costly which funds could
have been designated to better
investments.
-It may not produce the expected outcome
on time when needed (or not produce any
outcome at all).
-Advantage from innovative designs would
only bring short term benefits since it can
be easily copied and reproduced by
competitors.
ACA #2
Reduce price closer to competitors’ prices while maintaining product quality to
make products more attractive to market.
Pros Cons
- Improves sales and inventory
turnover since more products will be
sold due to the decrease in price
- Allows the company to gain greater
market shares as customers
choose apple over other products.
- Attracts price-conscious customers
to the company.
-Decrease in price may be perceived by
customers as decrease in quality.
-Decreases per-unit profit.
-May cause loss to the company in the
long run.

ACA #3
Allow customization and storage expansions design on current and future
products.
Pros Cons
-Adds quality to product.
-Makes high pricing of products more
worth-it to customers.
-Accommodate customers who prefer
greater storage or third party applications.
- It will make the product prone to
malfunction and external issues that could
have been avoided.
- Decreases product differentiation with
competitors.
-Safety and security issues may weaken
the company’s image.

RECOMMENDATION
As the group had carefully deliberated, we have arrive in a conclusion that the
best probable alternative course action is no. 3, which is to allow customization and
storage expansion design on current and future products. This action or strategic