Apple Value Chain Analysis
Value Chain Analysis
Before making a strategic decision, it is important for Apple to understand how its activities or products create values for customers. One way to do this is to conduct a value chain analysis (VCA). VCA “refers to the idea that a company is a chain of activities for transforming inputs into outputs that customers value. The process of transforming inputs into outputs compromises a number of primary and support activities” (Hill and Jones, 2001, p.133). Each value is considered to be a source of competitive advantage. In the analysis, the company is being examined exclusively.
SUPPORT ACTIVITIES
Infrastructure
Apple has an unprecedented cash position; in fact, the most cash held by any technological company (Schubarth C., 2011). It has 97.6 billion US dollar in cash (Schonfeld E., 2012) and this allows the company to internally finance any development and expansion without cost of capital. Furthermore, Apple is working on reducing its greenhouse gas emissions that is used in production and transportation by redesigning its packaging relying on renewable energy (O’Reilly J., 2009). Apple has a multi-functional structure that is flat to allow more flexibility (Apple Inc., 2012). As well as casual dress codes to allow effectiveness and to promote quick decision making and innovation.
Human Resource Management
Apple is following a lean management style and the philosophy of “having less is more”. That is Apply intentionally understaffing in order to be more productive and innovative (Sullivan, J., 2011). Apple, also, has a selective hiring process to attract talented employees. Moreover, Apple offer a generous employee benefit program; as a result, pulling and retaining the industry leading those talented employees to promote the company (Masi B., 2009, p.13).
Technological Development
Apple spend enormous amount of money on its Research and Development in order to push innovation further; thus stay ahead of competition. According to
Before making a strategic decision, it is important for Apple to understand how its activities or products create values for customers. One way to do this is to conduct a value chain analysis (VCA). VCA “refers to the idea that a company is a chain of activities for transforming inputs into outputs that customers value. The process of transforming inputs into outputs compromises a number of primary and support activities” (Hill and Jones, 2001, p.133). Each value is considered to be a source of competitive advantage. In the analysis, the company is being examined exclusively.
SUPPORT ACTIVITIES
Infrastructure
Apple has an unprecedented cash position; in fact, the most cash held by any technological company (Schubarth C., 2011). It has 97.6 billion US dollar in cash (Schonfeld E., 2012) and this allows the company to internally finance any development and expansion without cost of capital. Furthermore, Apple is working on reducing its greenhouse gas emissions that is used in production and transportation by redesigning its packaging relying on renewable energy (O’Reilly J., 2009). Apple has a multi-functional structure that is flat to allow more flexibility (Apple Inc., 2012). As well as casual dress codes to allow effectiveness and to promote quick decision making and innovation.
Human Resource Management
Apple is following a lean management style and the philosophy of “having less is more”. That is Apply intentionally understaffing in order to be more productive and innovative (Sullivan, J., 2011). Apple, also, has a selective hiring process to attract talented employees. Moreover, Apple offer a generous employee benefit program; as a result, pulling and retaining the industry leading those talented employees to promote the company (Masi B., 2009, p.13).
Technological Development
Apple spend enormous amount of money on its Research and Development in order to push innovation further; thus stay ahead of competition. According to