Outsourcing Apple IPad Production Research Paper

Outsourcing Apple IPad Production - Research Paper Example Apple’s IPad is one of the products, which was originally produced in the United State, but its production has currently been outsourced to oversea industries based in North Korea and China. In order to understand the basics of outsourcing strategies, this paper provides a cost break-down of processes involved in the production of Apple IPad, both in the United States and contracting oversea countries. It also discusses the advantages and disadvantages of outsourcing IPad production to oversea firms. As part of this paper, some legal and ethical issues that arise as a result of outsourcing Apple IPad are also discussed. Key words: outsourcing, Apple IPad, and economy Introduction Apple iPad is a modern piece of electronic that performs most of the functions just like a personal computer. Because of its light weight and efficiency, it is highly fantasized by people who need to walk around with their computers, while performing certain tasks (OGrady, 2009). The high demand for t his product, both inside and outside the United States, has forced the Apple Inc. to incur large transportation costs so as to reach its local and international customers, something that has significantly increased the cost of production. In order to limit cost of production resulting from importation of material, shipping of the products and labor costs, Apple Inc. realized that outsourcing of IPad production to overseas firms, especially with a large number of customers, will significantly reduce its cost of production and maximize profit (Hill & Jones, 2009). Samsung Company based in North Korea, and some other electronic firms based in China are some of firms that are currently producing Apple IPad. These firms produce Apple IPad and distribute them to both local and international customers. This means that less cost of transportation is incurred when this product is sold to the local customers more than if it was produced in the United States, and sold in either North Korea or China (Schniederjans, 2005). Cost Break-down for the Production of Apple IPad Material, transportation and labor costs are the key determinant of Apple IPad production cost. Apple iPad 2 was the most talked about consumer electronic that was released into the market in 2011 (Sparks, 2011). The price break-down cost for manufacturing 32GB GSM/HSPA version (From iSuppli) in the United States and oversea

Corporate Strategies Assignment Example | Topics and Well Written Essays - 2000 words

Corporate Strategies - Assignment Example With its vision of enabling its customers to make the most of their world and possibilities though the services it offers, O2 plc (O2) accomplishes its commitment of providing mobile communication services in Europe. The business organisation also profits from its leading mobile internet portal business. Armed with its values of being bold, trusted, open, and clear, O2 continues its quest to become the telecommunication industry's market leader. The creation of O2 in the 1990s can be traced backed to the decision of British Telecommunication to "demerge its mobile phone business" in order to strengthen the financial position of the latter. From its beginning, the firm is currently a major player in the various nations where it operates including the United Kingdom, Republic of Ireland, Germany, the Isle of Man, and Asia. As the business organisation is focused on satisfying consumer needs, O2 strategic business units are classified according to their geographic locations. It should be noted that the products being offered varies in each region (O2 Plc 2006). The major products of O2 are mobile telecommunication equipments which are either paid through installment plans or pre-paid. With its thrust to provide the market with higher quality products, the company offers complementary services like third generation telephony (3G), O2 Active, I Mode, and O2 Online. O2 also ensures the satisfaction of customers by offering product features like entertainment through its sponsorship of the England Rugby Team and Arsenal FC and partnership with Anschutz Entertainment Group (O2 Plc 2006). III. Competitive Position in the Industry Environment As stated above, O2 Plc operates in different geographic locations, battling head-on with various competitors. Table 1 shows the geographical locations of firm's business activities alongside with its competitors in each region. It can be deduced that O2's direct competitors are Orange SA (Orange), T-Mobile, 3, Vodafone Group Plc (Vodafone), Virgin Mobile Ltd. (Virgin Mobile), Meteor Mobile Communications Limited (Meteor), and e-plus. Table 1. Geographical Location of O2 and its Main Competitors Geographical Region Major Competitors United Kingdom Orange, T-Mobile, 3, Vodafone Ireland Vodafone, Meteor, 3 Germany T-Mobile, Vodafone, e-plus Czech Republic T-Mobile, Vodafone Slovakia T-Mobile, Orange In order to look at the relative position of O2 Plc relative to its competitors in the United Kingdom, this report will look each business organisation in terms of market scope, number of customers, financial performance, market growth, products and services sold, and factors affecting business well-being. The main findings including the data for O2 are tabulated in Table 2. Among all the players in the global mobile communication industry, Vodafone holds the largest market share at 26.8%. The business organization is recognized as the largest mobile telecommunication company in the world with a market value of 65 billion (Vodafone 2006). It is estimated that the market leader approximately has 186.8 million subscribers in the 27 countries where it conducts its