How Is Apple's Ipod Global Supply Chain Achieving Value Through Utilization of Local Competences?

Topics: IPod, IPhone, Apple Inc. Pages: 2 (839 words) Published: November 21, 2010
How is Apple’s IPod global supply chain achieving value through utilization of local competences? Using theories regarding industrial clusters, flexibility, hierarchy, regional development and globalization helps reveal the value Apple’s IPod supply chain is creating by sourcing high value critical components from countries like Taiwan, Japan and Korea. Those countries are world leaders in manufacturing high tech equipment, and because of the local knowledge and skills in those areas they can be considered high tech clusters. Who captures value in a global innovation? The case of Apple’s iPod, it takes on the debate whether or not, nationality of companies selling innovative products that are produced all over the world really matters. The case provides a framework to divide the value between different countries in the supply chain, and from it concludes that nationality does matter. My problem statement from the article is: In what way does the Apple iPod supply chain create the greatest value and how could Apple change this? My research question will be: How is Apple’s iPod achieving value through utilization of local competences? The Apple’s iPod supply chain is a virtual supply chain, and the lead company, Apple, only takes care of the design and marketing of the product for end customers. The company is a brand owner; they outsource all parts of the production, both manufacturing of components and the assembly. By sourcing high value critical components from countries like Taiwan, Japan and Korea the Apple’s IPod supply chain is exploiting the local skills and competences of these countries. These countries are leading in manufacturing high tech equipment and thus contribute greatly to the value creation of the whole supply chain. These countries also have a number of producers gathered in the same regions and can be defined as high tech clusters. If I apply the theories of Michel Storper and Bennet Harrison about different types of input output systems...
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