Beginning with an understanding of supply chain management, Hill et al. (2015) defines the task as managing the components from suppliers and the flow of inputs used in production to maximize inventory turnover, while minimizing inventory holding. Competing in the smart phone market requires Samsung to use innovation, a source of competitive advantage, possibly leading to high profit gains if production costs can be reduced and quality can be improved (Hill et al., 2015). Should Samsung succeed in producing high quality at a low fabrication cost, they could compete with Apple, for example, and possibly earn higher profits to match their large market share, which currently does not match their profits. Many components are required and involved in the assembly or in the making of a smartphone. Looking at Samsung competitor, Apple, in an effort to determine the high end of how much it costs to produce a product, renowned for its quality, the Apple 7, for example, costs $224.80 in bill of material costs to manufacture (Buetow, 2016). Presumably, each new product release and launch, including the new and higher price, would be based on the consumer anticipation of higher quality functions and inputs or capabilities. For example, the Apple 7 offers increased storage density, larger battery, waterproof microphone, water resistance, all with a new look (Buetow, 2016). Interestingly, according to Buetow (2016) Samsung makes a lower margin from hardware than Apple,
us all their manufacturing defects of existing L.L.Bean products at an agreed upon reduced rate,
Question #2-Define the supply chains for the following products from the first source of raw materials to the first customer. A) Big Mac, B) Gasoline, C) Automobile repair, D) A Text book.
Supply chain management is a practice that involves the planning, supervision, and implementation of strategies and controls to direct the movement of goods and services provided to customers. The intent of this essay is to incorporate a synopsis of existing literature and to provide the reader with a general understanding of how supply chain management correlates with the organizational design and structure of modern firms. The essay comprehensively reviews the components of supply chain management and their integration with functional areas within an organization. The information presented in this essay
Samsung is able to achieve and maintain its low cost position due to various factors. Samsung has always emphasized on process and production efficiency. The company places all its fab lines and R&D facility at a single site, so that engineers from various departments can come together to resolve any process or design issues as soon as possible. Benefiting from the collocation, Samsung achieved an average of 12% construction costs savings. Also, as seen in Exhibit 7a, Samsung is able to keep its fully loaded costs below that of competitors. The lower cost is mainly attributed to lower raw materials cost, perhaps due to better
Supply Chain Management (SCM) has been defined by Supply Chain Management Institute to be “the management of relationships in the network of organizations, from end customers through original suppliers, using key cross-functional business processes to create value for customers and other stakeholders”(SCM-Institute, 2016).
There are many competing brands of smart phones and Samsung has reported a decline of profits in 2014. Information from GSM arena shows than Samsung released 54 new phone models in 2014 , compared with 24 by HTC , 11 Motorola and 2 by Apple, leading to increased production costs and lack focus on a specific customer segments thereby losing some of its competitive advantage (GSM Arena , 2015).The lack of popularity of its own OS (Tizen ) and dependence on Google’s Android platform makes it vulnerable on google to develop an “ecosystem”. There are component integration issues as well as loss revenue from potential App sales (Strategic Mangement insight , 2015). Negative publicity from litigation due to patents are likely to continue as technology patents are vague and Samsung with is large portfolio is likely to infringe on some of the patents (Tibken, 2014).
Samsung products range from mobile devices, TV, audio and video, home appliances, cameras, PC and peripherals and print solutions (Samsung 2014). This essay will predominantly look closely at Samsung’s mobile phones market.
Currently a relationship exists between two cell phone models (Alpha and Beta) that will need some serious realignment. To decrease (Beta) and produce more of the (Alpha) model would involve sacrificing profits that could have been made on the more profitable model but also losing the contribution the Beta model made to cover the fixed costs at the factory. This reflects a key principle of opportunity costs.
Finally, there are those costs that are common to both global and domestic sourcing. Direct labor and materials costs, lead-time costs, transportation costs and inventory costs are a part of both domestic and offshore sourcing. Transportation costs, inventory costs, and lead-time costs tend to be higher when sourcing globally. On the
Taiwanese smart phone maker HTC Corporation is considering outsourcing manufacturing to other companies to improve its efficiency. Before building its own brand, HTC concentrated on manufacturing low-end smart phones for companies like Apple. However, in recent years, HTC has been under pressure from shareholders to reduce costs because of loss net operating income for the third quarter of 2013. Now, HTC wants to change its strategy; they want to concentrate on the research and development of high-end smart phones and outsource some of their low-end smart phone production to increase their sufficiency and lower the costs. In the smart phone industry, in order to improve efficiency, it is important for
As the sections we divided in Supply Chain Design paper, we have five different sections of a restaurant. They are Suppliers, Inputs, Processes, Outputs and Customers. Now we will find out two different measurements for each section.
This report investigates the suppliers of the components found on the logic board of the Apple iPhone 6. We find that while most of the product design and software development of this phone is carried out in Apple’s headquarters in California, USA, most of its components were indeed manufactured by companies scattered all over the world. The final assembly eventually takes place in China and Brazil before being shipped back to Apple’s USA offices for warehousing and marketing. A key finding is that Apple reaps quantum benefits from the global nature of the electronics industry and in so doing, increases the speed of its product development while lowering its overall cost of operations.
Apple does a fine-grained job in making the most of their profitability in just about every area. One way which Apple has expand their success is by providing the customers with more selections and possibilities. For example, Apple launched their iPhone 6 and their iPhone 6 Plus, which is a little bigger than the iPhone 6. If a customer buys an iPhone 6 Plus rather than the smaller iPhone 6, Apple makes an extra $84.50. The bigger screen and battery in the iPhone 6 Plus, plus a few other more marginal costs, put an additional $15.50 to the cost of manufacturing the iPhone 6 Plus, but Apple is charging upwards of $100 more for this phone. The two characteristics of the iPhone 6 Plus which rise the cost to produce it are the screen and
Samsung Corporation has experienced a big loss to the market for instance by introduction of cheap made Samsung Chinese phones and accessories across the market. The introduction has led to the failure of the market of products thereby reducing the amount of revenues. The process has decreased the sustainability across the market therefore a huge impact on the supply chain of the
The other day, one of my younger cousins came to see me and we had a long chat. At one point, he said that he was contemplating on a technology-based business idea in which he is keen to endow. I asked him to share the thoughts with me in detail. Then he explained, what he wanted to do, how to implement the thinking, approximate cost, budget, tentative loss-profit calculation, marketing procedure and supply chain management system etc. I found out that the proposal is new in Bangladesh and may be feasible if he can run it properly. Then I asked him to prepare a pitch deck for it. He replied, how about the pitch and how to do it. I informed that what you described me for the last half an hour, write it down. It will be a prototype. When you would make a slide with the gist of the prototype, it is generally named pitch. A pitch deck basically is a brief presentation, often created using PowerPoint, Keynote or Prezi used to provide your audience with a quick overview/short summary of your company, business venture and startup. You will usually use your pitch during face-to-face or online meetings with potential investor or clients. According to the famous evangelist and author, Guy Kawasaki, who is also an American marketing specialist and Silicon Valley venture capitalist, a pitch should have ten slides, last no more than twenty minutes and contain no font smaller than thirty points. This is applicable for any presentation to reach agreement: for example, raising capital,