Supply Chain Management Case Studies

This assignment examines the supply chain management strategies of three leading companies: Apple, Coca-Cola, and Zara. Students will analyze each company's supply chain, identifying key features, strengths, weaknesses, and challenges. The analysis should consider factors such as global sourcing, logistics networks, technology integration, sustainability, and ethical considerations. Students are required to compare and contrast the approaches of these companies, drawing on relevant academic literature and industry case studies.

Running Head: Competitive Strategy
Competitive Strategy

Competitive Strategy 1
Contents
Coca –cola- Globalising the supply chain.......................................................................................1
Definition of Globalization supply chain....................................................................................1
Coca-Cola globalized supply chain.............................................................................................1
Impact of globalizing supply chain on Coca-Cola......................................................................1
Apple - Globalising the supply chain..............................................................................................3
Definition of Globalization supply chain....................................................................................3
Apple globalized supply chain.....................................................................................................3
Impact of globalizing supply chain on Apple..............................................................................3
Zara- Target market and modes of entry.........................................................................................4
Target market and modes of entry...............................................................................................4
Zara target market and modes of entry........................................................................................5
Impact of target market and modes of entry................................................................................5
Ford- Target market and modes of entry.........................................................................................6
Target market and modes of entry...............................................................................................6
Ford target market and modes of entry........................................................................................6
Impact of target market and modes of entry................................................................................7
References........................................................................................................................................9

Competitive Strategy 2
Coca –cola- Globalising the supply chain
Definition of Globalization supply chain
Globalization and across the board Internet network are offering to ascend to broadened and
interconnected supply chains that mismatch the globe. As organizations wander into new
markets and manage providers and clients crosswise over fringes, their supply chains turn out to
be more unpredictable and are a higher hazard to business progression (Christopher, 2016).
Companies are going global with a supply chain. For instance- coco-cola; the company follows
the globalized supply chain.
Coca-Cola globalized supply chain
Coca-Cola is adopting globalizing supply chain because a company wants to meet the dynamic
need of the growing market and the new consumer segments. It helps the company in managing
the balance between the risk caused by economic and political uncertainties (Coca-Cola, 2017).
The organization is globalized in 2 Dimensions. Vertically, a company is globalized along with
the supply chain and of a relevance of the franchising system. The supply chain of the company
contains 300 bottling partners across the world. Horizontally, the company is globalized in
different regions that include 6 operating groups such as Eurasia, Europe, Africa, Latin America,
North America, and Pacific.
Impact of globalizing supply chain on Coca-Cola
This globalizing supply chain helps the company in connecting the operations of the company
with advanced cost. For managing the Ford and logistics charges company has to pay a tariff,
transportation, tax, duty. But with the help of globalized supply company reduce the production
cost by adopting new technology, by adopting new qualified employees, etc. Though, for

Competitive Strategy 3
adopting new technologies company need to perform investment. The company needs to bear the
risk while adopting new technology (Marshall, McCarthy, McGrath, and Harrigan, 2016).
Globalising supply chain enables the opportunity for the companies for expanding the business
in the new market. The coca cola company is following horizontal supply chain which helps in
dealing with multiple companies (Mangan, and Lalwani, 2016). This leads to the success of the
company. Though, on the other hand, a company might face large-scale management issues
related to the inventory and distribution issues. The company should manage the issues with the
help of the globalized supply chain. Global quality shows a rise in relation to the high level of
quality among the competitive products or services across the world. The globalized supply
chain can help companies in enhancing the quality with the use of the advanced technologies and
by adopting different types of raw materials. Though, operating the logistics across the border
may lead to the legal issues for the company. The company needs to take care of the legal laws
and policy that can create an impact on the working of the company.
The implementation of the globalized supply chain will lead to the success of the Coca-Cola
Company. Though there are some of the issues that the company has to face still, a globalized
supply chain is beneficial for the company. This enhances the quality of the products and
services; this will lead to the opportunity for the company to grab the attention of the new
customers and will also motivate the companies to adopt new technologies. Ultimately, the
working of the company will become effective and this leads to the success.

Competitive Strategy 4
Apple - Globalising the supply chain
Definition of Globalization supply chain
The companies can enter into the new markets to deal with the customers and the vendors across
the border. Globalization and across the board Internet network are offering to ascend to
broadened and interconnected supply chains that mismatch the globe. Though, the globalized
supply chain consists of risk and complexity of a business.
Apple globalized supply chain
Apple Company has adopted globalizing supply chain that results in the growth and success of
the company. Apple is one of the leading companies in the market across the world. According
to the Gartner research, Apple's supply chain has ranked#1 across the world in the year 2012 and
2013. Apple supply chain consists of 785 suppliers in approximately 31 countries. Out of these
349 suppliers are based in China. The supply chain of the company includes new manufacturing
partners in Taiwan and China (Gartner, 2015).
Impact of globalizing supply chain on Apple
Globalising supply chain brings a positive as well as negative impact on the operations of the
company. The company started focusing on the manufacturing of innovative products for the use
of the advanced technology. The adoption of the advanced technology is possible because of
globalizing the supply chain. Though, a company had taken a risk while bringing innovative
products to the market. A company is trying to bring diversification in the customized
manufacturing equipment and milling technology. For this apple company is strategizing to do
tie up with multiple suppliers for the single product (Banker, 2012). This will help the company
in enhancing the competitive advantage on competitors. Though, managing suppliers at the same

Competitive Strategy 5
is a challenge for the company. The company should reduce the key suppliers of the single
products that are involved in manufacturing, storing and shipping. Due to the globalized supply
chain; the warehouses of the products are increasing in numbers. This leads to a challenge of
synchronizing data of the stock with the central warehouses. To reduce the challenged company
should try to centralized warehouses at one location this will help in making the operations more
cost-effective and more efficient. This efficiency will lead to the success of the company (Clarke,
and Boersma, 2017).
"An incredible measure of Apple's supply chain achievement can be credited to them proceeding
to outline their items in California while utilizing the lower cost of outsourcing assembling to
China." – Original quote from Jonathan Hamilton (IT Consultant) (Black, 2015). This supply
chain helps in enhancing the outsourcing partners of the company. These outsourcing partners
help in enhancing the business activities and lead to the success. Though, a company is totally
depended on the services provided by the outsourcing partners. Along with this company relies
on the partner to follow the supplier code of conduct. Keeping the challenges aside the company
is gaining reputation and a good brand image in the market.
Zara- Target market and modes of entry
Target market and modes of entry
Target market defines as a market where company wants to sell the products and services. This
market consists of the set of customers to whom company directs its marketing efforts. Zara is a
Spanish clothing accessories retailer that is based in Arteixo, Galicia. The company was
established by Amancio Ortega and Rosalia Mera. Currently, the company operates
approximately 2,100 Zara stores located in 88 countries. Whenever a business decides to

Competitive Strategy 6
establish the operations in foreign countries they use different modes of entry such as licensing,
franchising, wholly owned subsidiaries, joint venture etc. similarly Zara also uses different
modes of entry to expand the business.
Zara target market and modes of entry
Zara market consists of both men and women, age group of 18-40 years with the middle range of
incomes. The target client is extremely designed forward and drifts cognizant, living in an urban
zone. They are either looking for themselves or for their kids. Zara's clients are certainly delicate
towards having the most up to date and in vogue garments and adornments however at a
moderate cost (Zara retailer, 2017). The most common mode of entry used by the company
includes own subsidiaries, joint ventures, and franchising. A wholly owned subsidiary is a
company that is fully owned by the other company. To enter the Indian market, Zara used the
strategy of a joint a venture with Trent limited, a Tata group company. Joint venture is
undertaken by 2 or more companies. Franchising is one of the modes of entry that is used by the
company to enter into the market. It is a practice of the right to use firm business model and
brand for a prescribed period of time (Ang, Benischke, and Doh, 2015).
Impact of target market and modes of entry
Zara has maintained a reputation and a brand value for targeting the teenagers. The company has
established a space in the market. The target customers of the company include youth who
believes in wearing a brand according to the trend. Youth believe that it adds value to their social
status. The change in the trends and fashion result in the change in the customer behavior and
purchasing power of the customer. Though, this creates a problem for the company as company
has to produce according to the demand of the customer. Sometimes company produces some

Competitive Strategy 7
fashionable or designers stuff. The stuff changes the demand of the customers and gradually this
became a trend for the customers (Viardot, and Nylund, 2017).
Zara is one of the leading and popular brands in the market across the world. The company
entered into the foreign market by using different modes of entry. After the selection of the place
or country, a company decides the mode of entry into the country. For instance, for Chinese
Market Company decided that franchising will be the best option. On the other hand to enter into
the Indian market company decided joint venture as a mode. Though, the selection of the mode
of entry needs proper analysis on the country where the company is willing to expand the
business.
Ford- Target market and modes of entry
Target market and modes of entry
The target market of the Ford includes the set of customers to whom the company wants to sell
its end products. The target market of the companies varies according to the products and
services that they are providing to their customers. The company is American multinational
automaker. The company was founded by Henry Ford. The company uses a different mode of
entry to make the space in the competitive market. Modes of entry into the foreign market
consist of franchising, joint venture, own subsidiaries, etc.
Ford target market and modes of entry
The company uses differentiated strategy in the business to target customers. The company
believes in satisfying the needs of the customers by providing a different form of economy cars
such as sports car, luxury car, sedan and hatchback cars (Boone, and Ozcan, 2016). The new

Competitive Strategy 8
model of the company Ford Fiesta is designed to target the youth including both men and
women. Targeted youth consist of the age group of 18-25 years old with the average income
slabs. The car is best in the segment and suitable for the unmarried or for the nuclear family.
According to this ford target the customer who can actually buy the product.
The mode of the entry that is used by the company includes exporting, licensing, and joint
venture. Most common mode of entry used by the company includes licensing in which company
takes permit to enter into the market (Waller, Bradley, Hosking, and Clarkson, 2015). Apart from
licensing company also uses exporting in which company exports its product directly to the other
country. In the automobile industry, it is, quite normal to get the car from the foreign countries.
Impact of target market and modes of entry
The target market of the company depends on the product that the company is offering to
customers along with the demands of the customers. According to the requirement, the
automobile company brings updated version and keep adding a new model in the product. This
enhances the scope for the company in terms of the target market. The company tries to fulfill
the requirement of the target segment by adopting advance technologies (Zhou, et.al. 2015). This
will ultimately lead to increase in the demand for the product. Higher demand of product
enhances the sales and profitability of the company. This will lead to the success of the Ford
Company.
The company decides the mode of entry seeing the target market of the company along with the
economic condition of the company. The major mode of entry that is used by the company is
exporting; most of the customers across the world try to export the product. For instance, ford
manufactures a car in the UK but they sell or export the cars in Germany, in spite of having a

Competitive Strategy 9
manufacturing unit in Germany. This shows how exporting of cars take place and how its
benefits the company in tapping the business in the international markets. This help in enhancing
the brand value of the company (Hennart, 2014).

Competitive Strategy 10
References
Ang, S.H., Benischke, M.H. and Doh, J.P., 2015. The interactions of institutions on foreign
market entry mode. Strategic Management Journal, 36(10), pp.1536-1553.
Banker, S., 2012, The Apple Supply Chain: The Best in the World?, viewed on 13th September
2017, https://logisticsviewpoints.com/2012/07/02/the-apple-supply-chain-the-best-in-the-world/
Black, K., 2015, Apple: A Global Leader in Supply Chain Management, viewed on 13th
September 2017, https://smbp.uwaterloo.ca/2015/06/apple-a-global-leader-in-supply-chain-
management/
Boone, C. and Özcan, S., 2016. Strategic Choices at Entry and Relative Survival Advantage of
Cooperatives versus Corporations in the US Bio‐Ethanol Industry, 1978‐2015. Journal of
Management Studies, 53(7), pp.1113-1140.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Clarke, T. and Boersma, M., 2017. The governance of global value chains: unresolved human
rights, environmental and ethical dilemmas in the apple supply chain. Journal of Business Ethics,
143(1), pp.111-131.
Coca-cola, 2017, The Coca-Cola System, viewed on 13th September 2017, http://www.coca-
colacompany.com/our-company/the-coca-cola-system
Eryuruk, S.H., Aydin, S. and Kalaoglu, F., 2014. Determining performance attributes using
SCOR model to compare apparel retailares. RMUTP Research Journal, pp.337-351.

Competitive Strategy 11
Gartner, 2015, A case study of Apple's supply chain, viewed on 13th September 2017,
http://aicd.companydirectors.com.au/advocacy/governance-leadership-centre/governance-
driving-performance/a-case-study-of-apples-supply-chain
Hennart, J.F., 2014. The accidental internationalists: a theory of born globals. Entrepreneurship
Theory and Practice, 38(1), pp.117-135.
Mangan, J. and Lalwani, C., 2016. Global logistics and supply chain management. John Wiley &
Sons.
Marshall, D., McCarthy, L., McGrath, P. and Harrigan, F., 2016. What's Your Strategy for
Supply Chain Disclosure?. MIT Sloan Management Review, 57(2), p.37.
Viardot, E. and Nylund, P.A., 2017. Conquering the Digital Customer: How Zara Is Confronting
the. Socio-Economic Perspectives on Consumer Engagement and Buying Behavior, p.334.
Waller, S., Bradley, M., Hosking, I. and Clarkson, P.J., 2015. Making the case for inclusive
design. Applied ergonomics, 46, pp.297-303.
Zara retailer, 2017, Fashion Target Market, viewed on 13th September 2017,
https://sites.google.com/site/zararetailer/fashion-target-market
Zhou, Y., Wang, M., Hao, H., Johnson, L. and Wang, H., 2015. Plug-in electric vehicle market
penetration and incentives: a global review. Mitigation and Adaptation Strategies for Global
Change, 20(5), pp.777-795.