The principles of the value chain are highly important for the cost-efficiency and success of the firm. In this instance, to understand the working mechanism of this concept, Porter (2008) identified that this process could be divided into main and supporting activities that ensure the delivery of exceptional value to the customers of the company. This flow of the processes and the ability to differentiate itself from competitors are critical drivers for high revenues and a distinct competitive advantage (Porter, 2008). In this case, I have selected Apple Inc. since it is one of the companies that are able not only to reach superior financial performance but also to create a unique brand image that is appealing to the clients of different ages. Another reason for selecting it is the fact that apart from operating in the emerging technology market with the intense competition, Apple survived and revolutionized the sphere of IT and management.
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To understand Apple’s success, it is critical to review each component separately and reveal the methods that the company uses to enlarge its customer base. In the first place, the company pays attention to both external and internal logistics. Its international network ensures in time delivery of the products. Nowadays, the firm has different direct and indirect distribution channels such as retailers and the company’s stores globally (Apple. Inc., 2015). Meanwhile, creating a competitive environment for suppliers helps the enterprise select only the best technology and design options (Apple. Inc., 2015). A combination of these stages ensures the sufficient flow of the operations while making Apple one of the successful examples of innovation-driven companies.
Other main activities are marketing and sales. For example, the company had $233,715 million in sales in 2015 (Apple. Inc., 2015). In this case, Apple links its financial performance to the increase in expenditure for the marketing campaigns. The company’s focus on the exceptionality, unique design and outstanding user-experience attracts more and more customers to these segments while differentiating the brand from the competitors.
Alternatively, Apple Inc. is also known for its exceptional service quality that guides the customers through the stages of selecting a product to its maintenance in the future (Apple. Inc., 2015). For example, AppleCare is one of the opportunities for the users of Apple gadgets, and it offers assistance with devices such as iPad and iPhones (Apple. Inc., 2015). In this case, to encourage sales growth and make service exceptional, the company pays vehement attention to human resource management. Apple believes that it is unreasonable to rely on selling “its innovative and differentiated products” solely, and the competent salespersons are the important tools that can deliver Apple’s values to retain its clients (Apple. Inc., 2015, para. 14). Consequently, critical attention is paid to hiring and training procedures.
Other elements include procurement and technological development. In this instance, the company was able to reach excellence by its constant research and development activities. As it was mentioned earlier, to encourage innovation, the enterprise considers competition between suppliers of high importance. In this case, Apple Inc. understands the need to continue R&D and pay substantial attention to the rapidly changing trends in the industry. For example, in 2015, it spent 8.1 billion dollars on the development of new products and the improvement of the old ones (Apple. Inc., 2015).
Overall, it could be said that this assessment reflects that the company was able to take into account different processes of the value chain as equally important. It remains apparent that the enterprise distributes its central values across the major components of the value chain successfully and understands their interdependence. The company’s excellence is reflected by Apple’s high revenues, global recognition, and positive customers’ feedback.
Apple. Inc: Form 10-K. (2015). Web.
Porter, M. (2008). Competitive advantage: Creating and sustaining superior performance. New York, NY: Simon & Schuster.