Operation: Apple products are free from toxins such as BFR. The products are enclosed in highly recyclable aluminium. The firm also outsources production to the third party OEM partners so as to eliminate the burden of production management. By manufacturing components inside the Company, this eliminates the transaction cost of purchasing them in the market thus optimizing the plant’s utilization. As a result, it results to greater economies of scale. The firm also needs to locate its production units near a cluster of suppliers so as to reduce the costs of purchasing and distribution (Apple Inc., 2013).
Outbound logistics: Apple needs to use a variety of direct and indirect distribution channels. The electronic Company is improving its capacities for distribution by increasing the number of its own retail stores globally. Lastly, Apple Inc. has developed economical packaging. This reduces material waste and emissions produced on transit (Apple, 2014).
Sales and marketing: sales and are very crucial in ensuring that a firm sells its products. Apple makes use of both print and electronic media to advertise their products. Apple can make use of radio, television, and newspapers, as well as online marketing tools such as Facebook and Twitter to increase its scope of customer reach. This saves the cost of rent or salespeople at the stores.
As part of its marketing strategy, the firm has entered into patent cross-licensing and also technology agreements with Microsoft. This was after years of unimpressive growth in market share. So as to maintain its market share, Apple has their own branded stores internationally that assist sell their products (Apple, 2014).
Procurements: Recently, the firm realised that outsourcing the raw materials. core ingredients in the manufacture of a product that already exists in the market may be considered as a step towards gaining competitive advantage by Apple Inc (Apple, 2014).