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The iPhone Story...
Transcript of The iPhone Story...
Shervin Azadpour Strategy.. The Role of Strategy in Business is to
Generate and Sustain Value via
the Linkages Between Position,
Organization, and Resources Core Competency:
Leveraging industrial design to integrate
software and hardware in innovative
and category-defining mobile devices that
take the user's experience to a new level. Better Expectations of Future Values
Path Dependence Apple has filed more than 200 patent applications related to the technology behind the iPhone. Best designed phone in the market
Excellent branding and marketing
Lots of apps and feature
Economies of Scale in Producing iPhones Strength Very expensive
No Expandable memory
Expensive accessories No Bluetooth
only in one form factor Weakness Limited distribution channels Fixed Similar devices Highly developed market Migrate people to Apple Port existing apps New social device Opportunity Threat intense competition Statistics.. What about Environment..? Where iPhone comes from!? Rare Earth Environmental Impacts of an iPhone E-waste: E-waste: Any broken or unwanted electrical or electronic device.
Hazardous Waste: Waste made up of toxic chemicals, radioactive materials, biological or infectious materials.
Leaching: The removal of materials by dissolving them away from solids.
Lead Poisoning: A medical condition caused by increased levels of lead in the blood. Apple Strategy about Environment: ‘all e-waste collected by Apple voluntary programs worldwide is processed in the region in which it was collected. Nothing is shipped overseas for disposal (Apple, 2010)’ Why China? Labor is cheap in China. For instance, minimum wage at China's Hongkai Electronics in 2010 was $138 a month. In the U.S., minimum wage is $7.25 an hour, or $1160 a month based on a 40-hour work week, with higher numbers in some states.
According to the Asian Development Bank, the assembly accounts for $6.50 of the final $178.96 wholesale cost of an iPhone The Materials Cost :
Rare earths Environmental Restrictions: The bottom line is that manufacturing the iPhone in the U.S. or any other western country with modern environmental legislation and labor rules would cut the profitability of the device precipitously. And slashed profits is not why companies like Apple make products like the iPhone. How to Protect a Competitive Advantage? Communication Strategy & Plan Strategic Management
Prof. Kausch Thanks For Your Attention