Supply Chain Strategy and Performance: Apple vs. Samsung

This presentation provides a comprehensive analysis of Apple's supply chain strategy and processes. It begins with an introduction to supply chain concepts, then focuses on Apple's distribution channels, detailing both direct and indirect methods. The sourcing strategy adopted by Apple, including local versus global approaches and the use of multiple suppliers, is examined. A comparison between Apple and Samsung is presented, highlighting differences in product design, promotion, operations, public relations, and market reach. The presentation concludes that the distribution network plays a significant role in delivering goods and services to consumers, and companies should adopt sourcing strategies based on marketing objectives and market reach. References to relevant academic sources are included.

Supply Chain Strategy
And
Process

Covered content
• Introduction
• Distribution Channel
• Sourcing Strategy adopted by Apple
• Comparison Between Apple and Samsung
• Conclusion
• References

Introduction
Supply chain refer to the network that helps in movement of
product from supplier to ultimate consumer. It include suppliers
of raw material, producers of finished good, warehouse that store
finished or semi finished product as well as intermediaries who
finally delivers the good to user. For better understanding of this
presentation, Apple has been selected which is a multinational
technology company of America and serve product like mobile,
laptop, smartwatches, TV and so on.

Distribution Channel
Distribution channel refer to the chain of intermediaries that
passes the good or services from manufacturer to customer.
These intermediaries can be wholesaler, distributor or
retailer that directly or indirectly makes the good available
to its ultimate user. Apple being global brand has invested
on multiple distribution channel to gain global dominance
in its field and cover strong customer base.

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 Two level or Indirect distribution channel: To reach the
product from producer to consumer, two level of
distribution channel include indulgence of two
intermediaries (that is wholesaler as well as retailer).
 Zero level or Direct distribution channel: In relation to
Apple, deals with large number of prospectus for its various
product like iPod, iPhone, Mac etc. by its website. Along
with that respective company has also presence in
recognized electronic firm such as Amazon.

Sourcing Strategy Adopted By Apple:
Local vs Global, Single Or Multiple
 Risk Diversification - Currently, the supply chain of
Apple is stable, due to which multiple supplier help
respective company to reach faster to its ultimate user.
 Capacity Management - With high brand equity of
Apple, the demand for its product keeps on increasing
especially for market like China and India

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 Margin sustenance - With multiple supplier opportunity
and low bargaining power of vendor, Apple can increase
the profitability of its business by giving low margin to
supplier.
 Supplier Innovation - Apple even gets benefit from
growth of new supplier by improving its operation
efficiency. As new supplier are willing to work with such
reputed brand.

Comparison Between Apple and Samsung
Basis of difference Apple Samsung
Product design Apple is more
profitable company
than Samsung in term
of innovative product
and design. For
instance, it generate
most of the profit from
this iPhone due to its
unique design.
Though Samsung earn good
revenue but it lack in terms of
innovative product and design in
comparison to Samsung.
Promotion Apple promote its
brand through
celebrity
endorsement, website
of company, print
media and so on. But
does not uses social
media like facebook
and twitter to promote
its operations or
quality.
Samsung on other side makes the
use of social media, celebrity
endorsement to increase its reach
and perform its operations
significantly.

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Operation Apple has positioned its
brand as innovative brand
with premium quality. Due
to which respective
brand perform its
operations smoothly.
On contrary, even Samsung perform
its operations effectively but still their
operation capacity is less in
comparison to its competitor.
Public relation Apple makes the use of
its publicity or word of
mouth promotional tool
for its prestigious brand
to make public relation
which further leads to
customer engagement.
Samsung comparatively uses costly
digital tool to gain the positive
publicity and make public relation .
Market reach Apple has diversified its
brand in more
international and national
market due to which the
market reach of Apple is
far way better than
Samsung
Even Samsung has huge customer
base but still its market reach is less
in comparison to Apple as it operate
in comparatively low regions.

Conclusion
From the above presentation it has been concluded that
distribution network plays a significant role in making the goods
or services available to its ultimate user. Company can adopt
various sourcing strategy like global, local, multi supplier or
single supplier based upon the marketing objective and reach of
company. Moreover, multinational brand uses multiple
distribution channel to cover various geographical regions or
untapped market. Thus, this strategy helps company to gain
global dominance and overpower their competitors.

References
Chen, C. C., et.al. 2012. A business strategy selection of
green supply chain management via an analytic network
process. Computers & Mathematics with Applications.
64(8). pp.2544-2557.
Droge, C., Vickery, S. K. and Jacobs, M. A., 2012. Does
supply chain integration mediate the relationships
between product/process strategy and service
performance? An empirical study. International Journal
of Production Economics. 137(2). pp.250-262.

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