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Apple outbound logistics apple outbound logistics

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Apple Outbound LogisticsApple outbound logistics involves warehousing and distribution of ready iPhones, iPads, Mac computersand other products produced by the company. The company ships finished products to Apple Stores thatare typically located at high-traffic locations in quality shopping malls and urban shopping districts.Apple outbound logistics also facilitates deliveries to the warehouses of wholesalers and retailers.E-commerce sales are rightly acknowledged by the company as a massive source of value in terms ofinbound logistics, because e-commerce is more cost effective compared to sales via Apple Store.Due tothe efforts of the company in this direction, Apple Inc. has become the third largest retailer in the US interms of size of e-commerce business, only behind Amazon.com and Wal-Mart Stores Inc. Specifically,Apple Inc. has e-commerce sales of USD 12 billion and this figure accounts to about 5.1 per cent ofcompany’s total sales.Moreover, a greater level of market penetration into Asia in general and China in particular can bespecified as an additional source of value for Apple Inc. from outbound logistics point of view. This isbecause selling in this particular geographical market would not involve massive outbound logisticsexpenses and this cost advantage can be passed to customers to increase the overall appeal of offers.Business StrategyAs already noted, Apple Inc has recorded a commendable performance over the past. An effectivebusiness strategy which the company has applied has to a greater extent contributed to its success. Mostof the successful companies have managed to develop and execute effective business strategy. This canclearly be described through the strategic positioning model.It has been revealed that the main problem which Apple faces is competition. In order to overcome thisproblem, there is need for the company to have an effective strategic positioning. Through this strategy,Apple has managed to position itself among other organizations in such a way that it has managed tostand out from many.Apple’s strategic target is in broad industry and characterized by broad differentiation. Apple hasmanaged to differentiate its product through innovation. This has been the main factor which haspromoted the company’s success over the past. A good example is when Apple dominated PDA marketwhen they introduced Newton in 1993.Later, the company introduced into the market iMac, which was a device that was easy to use. Thesewere just some of the innovations which the company has developed. Through the strategy of theproduct differentiation, Apple has managed to reduce threats which are posed by a high level ofcompetition. Although differentiation comes along with a cost, this cost acts as entry barrier to othercompanies.
Corporate StrategyIn its effort to maximize its performance and profitability, Apple has applied a diversified strategy in itsproduction operation. Apple Inc is involved in production of both hardware and software. The company

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