Preview

Operations Management Report

Powerful Essays
Open Document
Open Document
2575 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Operations Management Report
Operations Review
By I. A. D. (Uni Of Abdn)
Apple Inc. Retail Store

Executive Summary
This report examines an Apple Retail store from an operations management perspective while also exploring some of the company’s strategies. It points out that Apple retail stores are a special breed when compared to the competition, combining good service and retail practices, in an original way, in order to achieve success. Finally, it recommends Apple’s business model as an exemplary approach to retailing electronics, which should be used by more companies.

1. Introduction
Apple Inc. is an American multinational corporation established in 1976 with headquarters in Cupertino, California. It designs, develops and sells electronics, such as multimedia players (i.e. iPod), tablet PC’s (i.e. iPad), laptops, fixed computers and also software for all of these devices. It employs approximately 80000 people worldwide (Apple, 2014) and makes use of 423 retail stores (ifo Apple Store, 2014) to market its products. It is well known for the innovativeness and the unique, sleek design of its products. Its retail stores are no exception, being significantly different from those of its competitors, especially in terms of aesthetics and design.
This report will focus on describing and analysing aspects of one of Apple’s retail stores, based in Aberdeen, in the Union Square mall. This analysis will include the characteristics of the operation, the layout and flow, the performance objectives, the order winners and qualifiers and finally a few observations and opinions.

2. Characteristics of the operation
Operations can be conveniently distinguished by four characteristics: Volume, Variety, Variation and Visibility (Slack et al., 2010).
The volume of the Apple store retail operation is in some aspects high and in some aspects low. Given the premium priced products, and the highly customised customer experience, one would assume that the volume is low. However, when compared to other



References: A. Greasley (2009) Operations Management, 2nd edition, Wiley. N. Slack, S. Chambers and R. Johnston (2010) Operations Management, 6th edition, Prentice Hall. Apple (2014) Creating jobs through innovation. [Online] Available from: http://www.apple.com/about/job-creation/. [Accessed: 1st March 2014]. ifo Apple Store (2014) Apple store chronology 2013-2014. [Online] Available from: http://www.ifoapplestore.com/apple-store-chronology-2013-2014/. [Accessed: 1st March 2014].

You May Also Find These Documents Helpful

  • Powerful Essays

    “Marking mix is blending the four elements of marketing strategy-product, distribution, promotion, and pricing-to satisfy chosen customer segments.” (Boone & Kurtz 2013). Apple began their strategy like every company with products such as computers. Today Apple has diversified its product mix by introducing a new line of products, keeping up with the competitive consumer electronics market, by introducing the iPhone and iPad which are both handheld touch form of mini-computer and Apple TV. The second part of Apple’s strategy is price. Apple has never considered pricing as one of the competitive advantages. Apple has always tried to make a great product and worry about the price afterwards. The high price charge for its products also portrays the high quality of its products, for which consumers are willing to pay for. The third marketing strategy for Apple is promotion. According to Villing and Company (2011), promotion refers to the act of communicating the benefits and value of your company’s product to their consumers. Apple’s products are easy to identify with their simplistic approach of the layout of their products and their catchy music that plays in the background during commercials. All items in their advertisements are visual and not overpowering. The last P in their marketing strategy is place. “Place is related to the distribution, location and methods of getting the product to the customers.” (Villing.com). Apple has adopted a hybrid distribution channel involving an online store, physical outlets and the retail points of the exclusive mobile service provider and its online stores. Apple expanded its consumer reach by building numerous new retail outlets, owing and operating around the world in the last ten years. Apple already uses the differentiation strategy to be competitive by offering a unique and/or high quality product, by delivering products faster, and by marketing its…

    • 2447 Words
    • 10 Pages
    Powerful Essays
  • Satisfactory Essays

    A huge collection of computers and products of electronics used by consumers such as television adapters, music players, smart phones and tablets are offered by Apple. These products bring factors such as innovation, strength of the brand, strategies of premium pricing and management of supply chain which gives them an advantage of competition.…

    • 481 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Johnson developed a strategy to re-imagine the retail shopping experience yet again, with a bold, but perilous strategy to redesign the retail behemoth’s 1,100 stores (Kinicki & Williams, 2013). His plan requires stores to be divided into various specialty shopping areas and the normally highly trafficked center area of the store to be transformed into a Town Square, to loosely mimic the concept of Apple’s Genius Bar (Sacks, 2013). Thus, making JC Penney stores a destination by creating a completely unique and distinctly different shopping experience for customers and differentiating Penney’s from competitors like Kohl’s and Macy’s (Kinicki & Williams, 2013). In closing, Mr. Johnson intuitively took swift and decisive action to formulate a strategy to address the competitive forces impacting JC Penney’s (Sacks,…

    • 297 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Within the last 150 years, the retail industry has prospered as one the most profitable industries internationally (Tayan, 2003). Although technology may alter how a company conducts its business and consumer experience can significantly affect how well a company performs, the mature yet saturated retail industry continues to grow in line with the United States’ Gross Domestic…

    • 2669 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    Apple Computers was in need of a new retailing strategy and a more widespread adoption of its products. The 2005 annual report mentions that “One of the goals of the retail initiative is to bring new customers to the Company and expand its installed base through sales to computer users who currently do not own a Macintosh computer and first time personal computer buyers.” As a result, Apple has undertaken store based retailing with heavy emphasis on making the customer test the products first hand before purchasing a product. A visit to the Apple Store shows that they have a combination of a free flow layout and a loop layout. According to the company “this helps to guide a consumer’s emotional and intellectual experience through the store”. The design is flexible and fit to the space of the stores leaving enough room to walk around comfortably. It has also been said that 25% at the front of the store is devoted to products, 25% to music and photos, 25% for the Genius Bar and movies, and at the back of the store 25% devoted to accessories and other products. Responsive products or new products are placed at the entrance of the store where there is high visibility even to customers just walking past. For example, the new slim notebook, The Macbook Air with its catchy slogan “thinnovation” had a special display at the entrance of the store with a poster beside it. This can be said to be a technique used to catch the attention of shoppers and encourage them to walk into the store where they are able to actually try out the product first hand. The visual identity created through the strong brand image and effective product display technique used would definitely “pull” target consumers towards the store.…

    • 2193 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    One of the most popular stereotypes about Apple is that its fabulous retail store is a major reason for its success. Like other scholars, Stewart (2011) praised Apple for its dramatic retail store design. Apple retail stores, as Stewart commented, were nothing like traditional cheap and ugly retail stores. Instead, Apple makes great employment of glass in its design. The transplant material gives Apple store a luxurious and advanced look, which is an appearance that all Apple’s products share. Apple has now more than 300 retail stores all around the world. Many of them have even become local symbols, such as the transparent cube on Fifth Avenue in…

    • 2327 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Apple Inc, is an American multinational corporation with a focus on designing and manufacturing consumer electronics and closely-related software products. Headquartered in Cupertino, California, Apple develops, sells, and supports a series of personal computers, portable media players, computer software, and computer hardware accessories; Apple is also currently involved in the creation of new technology concepts, such as the iPhone, Apple TV, and many features of its new, upcoming operating system, Mac OS X “Leopard”. Apple also operates an online…

    • 688 Words
    • 3 Pages
    Good Essays
  • Best Essays

    Apple, Inc. was founded in 1976, formerly known as Apple Computer, Inc., the company changed its name to Apple Inc. in January 2007. The company is headquartered in Cupertino, California. Apple, Inc. and its subsidiaries participate in the design, manufacture, and marketing of personal computers and related software, services, peripherals, and networking solutions worldwide. Apple also provides a line of portable digital music players, as well as related accessories and services, including online sale of third-party audio and video products. The company's products and services make up the Macintosh line of desktop and laptop computers, the OS X operating system, the iPod line of portable digital music and video players, the iTunes Store, a collection of peripherals that support and enhance the Macintosh and iPod product lines, a suite of consumer and professional software applications, and the Xserve and Xserve RAID server and storage products. In addition, Apple, Inc. offers various third-party Macintosh and iPod compatible products, such as application software, printers, storage devices, speakers, headphones, and other accessories and supplies. The newest addition to the Apple product line is the iPhone. The company provides an online service to distribute third-party music, audio books, music videos, short films, television shows, movies, and iPod games. Further, Apple offers products and services for the educational industry, which include iMac and the MacBook, video creation and editing solutions, wireless networking, professional development solutions, and one-to-one learning solutions. Apple, Inc. markets its products to the educators, students, consumers, creative professionals, businesses, and government customers through its online and retail stores, as well as through its direct sales force, third-party wholesalers, resellers, and value-added resellers. As of March 9, 2007, the company had 173 retail stores in the United…

    • 3587 Words
    • 15 Pages
    Best Essays
  • Good Essays

    one of these three dimensions. If an element or activity goes wrong and starts to…

    • 4737 Words
    • 27 Pages
    Good Essays
  • Better Essays

    One of the interesting notes on the retail business of Apple is that basic rules for these retail stores remained the same all around the world: Steve Jobs emphasized the design of the store: the glass exterior, wood display tables, winding staircase and large promotional posters. Employees wear matching uniforms with their names on a lanyard, making it more personal. In addition, Apple’s policy is to employ as many staff as possible, so no customer would be left wandering alone in the store – somebody is always there to help the customer. Therefore Apple employees’ credo states that the number one goal for the store is to “enrich customers lives and experience”. This set of rules apply to every single Apple retail store around the world, which ensures customer gets the same satisfaction in any country. To measure customer’s satisfaction,…

    • 1230 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Apple's has emphasized its unique retail stores through design for several of its flagship locations as well as tailoring the retail experience to include product "test drives", classes and workshops geared teaching users about its products. With relatively light presence in lower-margin, higher-growth geographic areas, Apple will experience less of its halo effect and reduced product/brand recognition, lowering sales potential. With China and India estimated to make up about 66% of PC market growth through 2010, this could be a significant challenge for Apple.…

    • 715 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Sensory and Luxury

    • 442 Words
    • 2 Pages

    As described in the background, retailers are increasingly conscious of the importance of their store…

    • 442 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Apple MIS & TPS

    • 387 Words
    • 2 Pages

    Apple Inc, a formerly Apple Computer, it’s an American multinational corporation headquartered in Cupertino, California that designs, develops, and sells consumer electronics, computer software and personal computers. Its best-known as hardware products are the Mac line of computers, the iPod which is a music player, iPhone which is a famous Smart-Phone in world, and iPad which is a tablet.…

    • 387 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Distribution

    • 493 Words
    • 2 Pages

    The current topic is about distribution while the main article will explain about Apple’s distribution strategy to expand their international market through innovation of strategies of the retail stores. Previously, Apple was prefers to open their retail shops around the customers’ neighborhood or busy commute places such as Grand Central stations. However, recently Apple has stated its plan to open their retail in prestigious shopping centers such as Harrods, London (Gurman 2012). On 2012, Apple also planned to open more retail stores in historical building in several countries such as Canada, Germany, and Spain. The local government has been approved this plan (Kahn 2012). Apple even planned to expand in Brisbane’s historical building, the McArthur Chambers and Apple claimed that the store will be the Apple’s largest shops in the country (Macnn 2011). The company’s retail strategies have been dubbed as the most successful compared with its competitor these strategies are also attributed to Apple’s triumphs at branding strategy. In this case, Apple stores have been fame of its minimalist designs and clutter free zone. The management team of Apple nicknamed these stores as ‘Significant Stores’ and admit that this is also one of their distribution strategy (LaVallee 2009).…

    • 493 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Channel Conflict

    • 1906 Words
    • 8 Pages

    As part of its strategy, apple continued to open more retail stores and currently operates hundreads of stores around the world.…

    • 1906 Words
    • 8 Pages
    Powerful Essays

Related Topics