The paper "Supply Chain Management - Apple IPad" is an outstanding example of a management case study. Determining the issues facing the global market and defining the risks involved is one method used by companies in managing risks in the supply chain. Apple has a major challenge of maintaining iPad production and component supply once the key suppliers are out. The company has, therefore, to figure out how to effectively deliver into new territories and in dealing with incredible demand especially in online orders in the US. These challenges are to complicate Apple’ s iPad and future launches.
It will also baffle the efforts of another company wanting to match Apple’ s offering price. The importance of supply chain management for any company is indeed valued to the extent of proper attention as the wrong predictions may lead to less profitability. Characteristics of the product The iPad is a line of tablet computers that is designed as a platform for audiovisual media which include books, games, movies and web contents. Steve (2010) shows the weight and size falls between that of a modern Smartphone and a laptop and runs an operating system similar to the iPad or iPhone.
The device is controlled by a multitouch display that uses a pressure- triggered stylus and an onscreen keyboard. The first iPad was released in April 2010 where about 14.8 million iPads have been sold worldwide. In March 2011, iPad 2 was introduced and currently, about 15 million have been sold and it is expected to take about 83 percent of the tablet computing market share in the U. S. (Donald 2011). Changes in the market According to Donald (2011) initially, the device was available only at the Apple store and the company’ s retail stores but currently, it can be purchased through many retailers such as Amazon, Wal-Mart, Verizon, etc.
The first channel of distribution is the online store where it was launched in various countries and pre-orders can also be made online. Apple uses four different types of new and improved distribution channels which include an online store, retail stores and third-party distributors. The product strategy cultivates an emotional connection to its consumers through content. Murph (2010) puts it that the device has about 65,000 applications through to consumers this is not more important than the price, battery life and 3G service flexibility.
The other factor is the channel of distribution where most people prefer to buy from the Apple stores to have some knowledge from sales staff on how to use. The service matters, for example, a study conducted showed that consumers are willing to pay more for Apple products since they perceive that the services offered are built according to the price of the device. 3. Importance of innovation Apple iPad 2 becomes the tablet to be beaten in 2011 due to its various applications such as thinnest construction, longer battery life and it has a competitive price.
Murph (2010) shows the device also has an existing pool of thousands satisfied and it is evangelizing to its customers. Other features include a multi touch screen, headset control, and a digital compass and ambience light sensors. The storage of the device ranges from 16GB to 64 GB flash memory and has a front-facing and a 720p rear-facing camera. However, pioneering in the technology market is very risky as late movers and competitors copy some features and add new features, therefore, redefining the market.
The competitors also copy the marketing efforts used to create demand for a product in the market.