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Apple Value Chain AnalysisPosted on March 9, 2017by John DudovskiyApple value chain analysis is an analytical framework thatassists in identifying business activities that can create valueand competitive advantage to the business. Figure 1 belowillustrates the essence of apple value chain analysis.Figure 1 Apple Value Chain AnalysisApple Primary ActivitiesApple Inc. Inbound logisticsApple works with hundreds of suppliers around the globe andmaintains a highly sophisticated supply-chain management asillustrated in Figure 2 below. Apple’s purchase commitmentstypically cover its requirements for periods up to 150 days.CEO Tim Cook is known for his strategy of getting suppliers tocompete with each-other and he has reduced the numbers ofsuppliers considerably after becoming CEO in 2011.
Figure 2 Apple operations roadmapThe main sources of value in Apple inbound logistics relate tothe economies of scale due to the massive scope and scale ofbusiness operations as discussed below and the developmentof strategic relationships with suppliers. Moreover, Apple Inc.exercises an immense bargaining power in dealing with itssuppliers and as a result, the company is able to secure costadvantage in the purchase of resources.