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2016-12-22 10:56
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The power of suppliers in the basic industry of Apple is moderate to high. This is due to the fact that on the one hand, Apple has is dependent on other organizations like Intel for the processor, AMD for component parts, and Samsung for the central processor of iPhone and iPod, however on the other hand as these different suppliers are also striving for market share and Apple's provide them the dominant share of the market, the interests of these suppliers and the organization are interdependent (Data Monitor, 2009). Apple has one of the most sophisticated and extensive supply chain management as its products are designed in USA while the assembly plant of the organization is located in China, while the organization relies on hundreds of suppliers for different products and component parts who are situated in Taiwan, Singapore, USA, and China (Hill, 2008). There are some switching costs that Apple encounters for changing its different suppliers as Apple's over the years have been changing different suppliers due to various ethical and environmental concerns that have been identified with the firm's suppliers (Enderle, 2010). In addition, the organization has been using multi-suppliers that have enabled the firm to control the power of suppliers in the market.
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