Apple Case - Successful in Growth and Innovation

2.0 Successful in Growth and Innovation

In the personal computer market, Dell is a classic process innovator. Its products are commodities that essentially meet the prevailing needs of most buyers. However, through the perpetual fine-tuning of its supply, assembly, and distribution operations, Dell has gained a cost advantage over its rivals that made it the as fastest-growing and most profitable company in the industry. Apple, on the other hand, is the model of an effective product innovator. It generates profit by offering distinctive and stylish products that are sizable which buyers are willing to pay more for (Carr, 2005).

Apple had resurgent in the late 1990s, attributable to innovation of breakthrough products like the iMac, iBook, and iPod (Carr, 2005). Soon after Steve Jobs returned to CEO position in 1996, he hired an operations ace, IBM and Compaq veteran Timothy Cook, to improve the company's supply chain. By copying the best practices like Dell, Cook dramatically reduced Apple's in-channel inventory, which leads to savings in working capital that provided immediate boost to profitability (Carr, 2005). On the distribution end, Apple has successfully introduced efficient direct-to-customer channels such as online sales and stores that are very approachable to the customers.

The Apple stores are mainly located in US, Canada, UK and Japan. Customers can find the latest products at a nearby Apple store. Experience the newest Apple hardware, applications and accessories, including digital cameras, camcorders, and the entire iPod family. Customers can meet Mac Specialists who demonstrate products and answer relative questions. For the Apple online sales, customer can easily sign in to the Apple stores to purchase the products. Apple uses the best carriers in the business to make sure all the orders arriving on customers' doorstep as soon as possible. Two-days and overnight express services are available for most of Apple products (Apple Computer homepage). Some products that are in stock at the warehouse can be shipped on the same-day. Moreover, if the customers need help to decide which new Mac to buy or they have questions about product compatibility. They can give a call to Apple expert sale representatives for advices (Apple Computer homepage).

Most of new products will often incorporate ideas and components filched from others. For example, the most popular products of Apple computer—iPod digital music and video player, Apple borrowed the major components from outside suppliers — the basic circuitry from PortalPlayer, the tiny hard drive from Toshiba, the battery from Sony, the digital-to-analog converter from Wolfson. It uses Japanese components and outsources its manufacturer to a Taiwanese company that assembles the products mainly in China (Kitazume, 2006). However, Apple concentrates innovation as its core strengths of engineering, design, marketing, partnering,