In the quarter ending March 2022, Apple Inc. (Apple)’s share in the Chinese smartphone market fell to 17.9 per cent from 21.7 per cent in the previous quarter. Business analysts attributed the falling share to weak consumer sentiments; a lack of innovations; and major supply-side headwinds, including frequent COVID-related lockdowns in China, power shortages, Russia's invasion of Ukraine, and the trade and technology war between the United States and China. Apple needed to identify strategies to gain a leading share in the Chinese market. In the face of demand- and supply-side adversities in China, it also needed to reconsider its supply chain and manufacturing base. Should Apple keep its supply chain concentrated in China, to reap the benefits arising from the economies of scale in the production process? Or should it pursue geographic diversification for its supply chain, to protect itself from the major problems hovering on the horizon?
苹果公司：是否应该在中国以外的地区实现供应链多元化？Apple Inc.: Should It Diversify Its Supply Chain Outside Of China? (Simplified Chinese version)
Veena Keshav Pailwar
Product #:W36489
Supplier:Ivey
Discipline:Economics & Public Policy, Strategy
Setting:India, Taiwan, Vietnam, China, 2022
Industries:
Your Price:$10.54
Purchase this material with a free Educator Account and enjoy more benefits:
- Free Educator Copy
- Free Teaching Notes
- Build your coursepack
- Discounted academic price
Learning Objectives
完成案例和作业问题后，学生将能够做到以下几点:
- 了解需求和供给因素对公司业绩和市场份额的影响。
- 根据定量和定性数据确定公司的市场结构。
- 将短期和长期成本分析与管理决策联系起来。
- 了解商业环境在地理迁移和多元化战略决策中的重要性。
This case was developed for discussion in an undergraduate- or postgraduate-level management program. It is suitable for managerial economics courses comprising demand–supply analysis, market structure analysis, and exit decisions. The case can also be taken up in a business environment and strategy course to discuss strategic geographic expansion and contraction decisions in a dynamically changing business environment.
After working through the case and assignment questions, students will be able to do the following:
- Understand the influence of demand and supply factors on a firm’s performance and market share.
- Ascertain the market structure of a firm from quantitative and qualitative data.
- Relate short-run and long-run cost analysis with managerial decisions.
- Understand the importance of the business environment in strategic decisions of geographic relocation and diversification.