Value Chain Analysis Primary Activities Inbound Logistics Most components are generally available from multiple sources;

s; a number of components are currently obtained from single or limited sources. Hardware products are manufactured by outsourcing partner primary in Asia e.g. Foxconn. Delegate raw materials acquisition Apple works with its OEM partners to delegate the raw materials acquisition process but provides some supervision for quality control purpose. Automated receiving systems Apple has implemented sophisticated automated receiving systems to speed up the receiving process and reduce facility footprint and storage space requirement.

Operation Elimination of toxic substances in Apple products. Every product is free of BFRs and other harmful toxins, Apple have also qualified thousands of components to be free of elemental bromine and chlorine. Products are designed highly recyclable aluminum enclosure. Utilize original equipment manufacturers (OEM)s economies of scale Apple outsources production to third party OEM partners to utilize their economies of scale while removing the burden of production management from the firm.

Outbound logistics Apple used variety of direct and indirect distribution channel, such as retail stores, online stores and direct sales force, 3rd party cellular network carriers, wholesalers, retailers and value added resellers. Apple continue to expand and improve its distribution capacities by expanding the number of its own retail stores worldwide in order to ensure a high quality buying experience for its product. Economical packing - Apple employed teams of design and engineering experts who develop product packaging thats slim and light yet protective. Efficient packaging design not only reduces materials and waste, it also helps reduce the emissions produced during transportation.

Marketing and sales Since the introduction of the Macintosh in 1984 with the 1984 Super Bowl Commercial to the more modern Get a Mac adverts, Apple has been recognized in the past for its efforts towards effective advertising and marketing for its products. Wide-range advertising online, on TV, print ads (newspapers and magazine) . The company name logo Apple was so named because Jobs was coming back from an apple farm, and he was on a fruitarian diet. He thought the name was "fun, spirited and not intimidating, the logo was designed with a bite so that it easy to recognized.

Product support and services AppleCare offers a range of support for the company customers. These options include online support including comprehensive product information as well as technical assistance, and the Applecare Protection Plan (APP). APP is a fee based service that typically includes two to three years of phone support and hardware repairs and dedicated web based support resources. Consumers may purchase the APP, which extends service coverage on many of the companys hardware products in most its major markets. Apple Genius- Apple stores house the Apple Genius Bar where customers can talk with an Apple specialist known as a genius about the problems with their device. This human interaction with a first party service provider builds a rapoort with customers and offers a stark contrast to endless phone service calls. Updates of software are regularly released.

Supporting activities Research and development Industries competes are characterized by rapid technological advances, Apple have to continues to develop new technologies to enhance existing products and to expand the range of its product offerings through research and development in order to keep ahead of competition. Total research and development expense was $2.4 billion, $ 1.8 billion and $1.3 billion in 2011, 2010, 2009, respectively. Patent Apple holds a portfolio of several thousand patents as the company believes the ownership of such patents, copyright, trademark is an important factor in its business.

Human resources management Apple engage directly with workers to teach them new skills and managers are trained on their responsibilities under the Supplier Code of Conduct. Selective hiring process Apple follows selective hiring practices to recruit and hire talented individuals.

Procurement Positive relationship with suppliers, Apple supplier code of ethics Requires suppliers to provide safe and healthy working conditions, to use fair hiring practices, to treat their workers with dignity and respect & etc. These beneficial steps foster positive relationship with its suppliers.

General Administration A greener Apple Products packaging redesigned to be more lightweight and take up less space in shipment. Reduce number of harmful chemicals in the production of its products. Strong cash position Apple maintain a large cash reserves and carriers a comparatively small amount of long term debt. This enables Apple to finance expansion, capital purchases, and development internally with little reliance on third party creditors.