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GB570 Gnadt_Unit_6_Final_Project_1
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Executive Summary …………………………………………………………………………………………...  3

Introduction  ……………………………………………………………………………………………..………  4

Supply Chain Issues at Apple  …………...……………………………………………………………..….  5

Problem Statement  ……………………………………………………………………………………………  7

Causes and Effects  …………………………………………………………………………………………….  8

Cost Benefits  ………………………………………...……………………………………………………..….  10

Conclusion  ………………………………………………………………………………………………...……  12

References  …………………………………………………………………………………………………...…. 14

 

 

 

 

Executive Summary

            Apple Inc. has built an expansive empire from its humble beginnings.  Today, it is hard to believe competitors in the personal computer market once nearly forced the company to extension.  One of the reasons it is so hard to imagine that is because it is hardly just a computer company any more.  The iPod revolutionized Apple and portable electronic devices now account for a significant portion of Apple’s revenue.

            Today the company is facing many supply issues related to its portable electronic devices.  To remain profitable and continue gaining market share these issues need to be over come.  Some of the issues Apple is currently facing include: stock-outs of its most popular products for long periods after their release that allow customer excitement and demand to dissolve; a rapid and significant expansion to its customer base by allowing its iPhones to be sold on the Verizon network and a supply chain that will be stressed by it; and finally a bitter dispute with third party subscription content suppliers for its portable devices over the company’s commission policy. 

            The last issue is the one that will be the focus of this paper.  Apple’s policy will be critiqued and found to not be in the best interests of the long-term prospects for the company.  The case will be made for a graduated commission structure that will both provide Apple with revenue generation form its App store and also allow third party content suppliers to prosper from both the quality of their content and the popularity of Apple’s devices.

Introduction

            Apple computer has been in business since 1976 when Steve Jobs started making and selling computers out of his parent’s Los Altos, California garage (Yoffie & Slind, 2008).  The company enjoyed extreme success in the beginning dominating the personal computer market but rivals Microsoft and IBM eventually overtook it.  It was almost forced to extinction except for a very devout following and, in 2001, it introduced the iPod, which revolutionized the company and the entire music industry. 

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GB570 Gnadt_Unit_6_Final_Project_1
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  • Submitted On 29 Jun, 2015 05:57:46
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Executive Summary …………………………………………………………………………………………... 3 Introduction ……………………………………………………………………………………………..……… 4 Supply Chain Issues at Apple …………...……………………………………………………………..…. 5 Problem Statement …………………………………………………………………………………………… 7 Causes and Effects ……………………………………………………………………………………………. 8 Cost Benefits ………………………………………...……………………………………………………..…. 10 Conclu...
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