Apple the Consumer Electronics Industry Assessment

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The result of the innovation chain at Apple is that the company has delivered products that are not innovative, but are used and designed in innovative ways. The vertical integration is unique, the design is unique, and Apple's vision for how its products are used is also unique. Put together, the company is one of the most innovative in consumer electronics, and many firms follow Apple's lead. This has enhanced the company's reputation by positioning it as the innovator. With groundbreaking products, Apple also has a strong employer brand. The company therefore is able to attract top talent, on the idea that this talent will be put to good use in developing leading edge products.

The company's supply chain is typical of the industry. Apple sources finished products primarily from China, from OEMs that manufacture consumer electronics for a number of different companies.

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The key benefit of Apple's supply chain is that it is able to continue delivering products even through the massive growth in Apple over the past decade. Apple likes to get products to market at the front end of the life cycle. This allows the company to not only enjoy first mover advantages (iPad) but to ride the growth of the entire segment as a first mover (iPod, iPhone). The company has been much less successful in segments where it did enter early (computers) so it is focused on creating and fostering the growth of the categories in which it competes. Apple does this by supporting its products with massive marketing expenditures. The company spends billions to create product awareness and to support its brands, and tries to ensure that its corporate culture is locked into the advertising as well......

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