Value Chain Activity Discussion complete assignment # 3 use the powerpoint for help cant use outside sources such as websites Apple Inc.: Taking a Bite Out

Value Chain Activity Discussion complete assignment # 3 use the powerpoint for help cant use outside sources such as websites Apple Inc.: Taking a Bite Out of the Competition
Case 16 – Apple Inc.: Taking a Bite Out of the Competition
Reference Chapter 3: Analyzing the Internal Environment
When one firm outperforms others by a wide margin over a long period of time, it’s
important to figure out how this could be. The answer may lie in how that firm arranges
its activities and creates unique bundles of resources that allow it to sustain a
competitive advantage. Below are the elements in Apple’s value chain. Every activity
should add value. Take a look at Exhibit 3.1 to see the value chain activities. Based on
the relationships between these elements, Apple can make a choice of how to proceed to
craft a competitive advantage.
Directions: 1. Identify the different elements of the value chain. You want to determine
which ones are strengths vs. weaknesses.
Value chain activity
How does Apple create value for the customer?
What challenges does Apple have in its value chain?
Primary:
Inbound logistics (distribution
facilities, material control
systems, warehouse layouts)
Operations (efficient work flow
design, quality control systems)
Outbound logistics
(consolidation of goods, efficient
scheduling, finished goods
processing)
Marketing and Sales (motivated
sales people, innovative
advertising & promotion,
effective pricing, proper ID of
customer segments &
distribution channels)
Service (ability to solicit
customer feedback & respond)
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Apple Inc.: Taking a Bite Out of the Competition
Secondary (or support):
Procurement (win-win
relationships with suppliers,
reduced dependence on single
supplier)
Technology development (state
of the art hardware & software,
innovative culture & qualified
personnel)
Human resource management
(effective recruitment, incentive
& retention mechanisms)
General Administration
(effective planning systems to
establish goals & strategies,
access to capital, effective top
management communication,
relationships with diverse
stakeholders)
2. Write a brief statement at the conclusion of your analysis summarizing Apple’s
competitive advantage as a result of their primary and support activities in the value
chain.
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Apple Inc.: Taking a Bite Out of the Competition
In addition, see the concept of the resource-based view of the firm, and the three key
types of resources: tangible resources, intangible resources, and organizational
capabilities. Determining whether the internal resources are valuable, rare, difficult to
imitate, or difficult to substitute (VRIN) can help a firm sustain a competitive advantage.
See Exhibit 3.6. in text
Directions:
3. Identify each resource for Apple below and perform a VRIN for each resource
per the chart below.
Tangible Resources:
Financial:
Physical:
Technological:
Organizational:
Intangible Resources:
Human:
Innovation and creativity:
Reputation:
RESOURCE
VALUABLE
(Y/N)
RARE
(Y/N
INIMIITABLE
( Y/N)
Tangible Resources
Financial
Physical
Technological
Organizational
Intangible Resources
Human
Innovation &
Creativity
Reputation
3
NONSUBSTITUTA
BLE
(Y/N)
IMPLICATIONS FOR
COMPETITIVENESS
Apple Inc.: Taking a Bite Out of the Competition
4.
Applying the VRIN concept to the resources……………………………………
(in your answer # 3……..please complete this sentence)
5.
Do any of the following concepts apply to Apple? If so, please describe how?
Path dependency
Causal ambiguity
Social complexity
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Apple Inc.: Taking a Bite Out of the Competition
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