Apple Inc. Global Supply Chain Management By P.
Fraser Johnson
Discussion Questions:
1. What is Apple’s strategy? How important is the iPhone to Apple, and what challenges are the
company facing?
2. Analyze the iPhone supply chain. Do Apple’s supply chain capabilities represent a source of
competitive advantage? Why or why not? Support your analysis with data from the case.
3. Given the challenges facing Apple, what are the implications for its supply chain strategy?
4. As Tim Cook, what steps would you take to improve Apple’s supply chain? Why?
When used in back-to-back classes with either the Walmart Inc. (Walmart) or Amazon.com Inc.
(Amazon) cases, the following assignment questions can be added:
• How does Apple’s supply chain compare to Walmart’s supply chain? How are they different? How
are they similar?
• How does Apple’s supply chain compare to Amazon’s supply chain? How are they different? How
are they similar?
POTENTIAL QUESTIONS FOR CLASS DISCUSSION
1. How is the iPhone related to Apple’s strategy to expand its services and wearables offerings? How
are the product and services segments intertwined?
2. How profitable is the iPhone? How have the margins changed since 2007?
3. Are you concerned that Apple has not released a blockbuster product since the iPad in 2010?
4. What are the unique characteristics of Apple’s supply chain?
5. How does the supply chain for the iPhone need to change as the smartphone market matures?
6. What is the significance of Apple’s agreement with Amazon to make it an authorized dealer?
7. Would you rather be a supplier to Apple or to Walmart?
8. Would you invest in Apple stock? Why or why not?
, W20473
Teaching Note
APPLE INC.: GLOBAL SUPPLY CHAIN MANAGEMENT
CASE SYNOPSIS
This case focuses on the supply chain strategy of Apple Inc. (Apple). Set in early 2020, it provides a detailed
description of the company’s supply chain network and capabilities. Data in the case allows students to
develop an understanding of Apple’s source of competitiveness and to gain insights into the management
of a large, complex, global supply chain network that focused on the intersection of services, hardware, and
software. Students will obtain an understanding of the supply chain challenges faced by Apple in the context
of supporting its corporate strategy and growth objectives.
LEARNING OBJECTIVES
This case can be used in undergraduate- or graduate-level courses on operations management, supply chain
management, logistics, strategy, or marketing. It provides an opportunity to appreciate the complexities of
managing a complex global supply chain. Combining this case with the cases Walmart: Supply Chain
Management (Ivey case 9B19D013) and/or Amazon.com: Supply Chain Management (Ivey case 9B18D017)
in back-to-back classes provides a powerful illustration of the differences between leading companies and
demonstrates the importance of aligning supply chain competencies with organizational strategy.
After completing the case and assignment questions, students will be able to:
• assess Apple’s supply chain and identify its key competitive advantages;
• quantify Apple’s ability to generate value from its supply chain;
• identify potential opportunities and challenges for Apple in improving its supply chain; and
• analyze the effects of the opportunities and challenges Apple faces in its growth and evolution.