Supply Chain Security

Apple’s Business Network Conundrum Has Apple learnt the lesson that Dell never learnt? Apple has grappled with this conundrum for a while now – when, if at all, to dump Samsung? There comes a point in every business network when the erstwhile suppliers become more powerful than the ‘customer’.

Apple’s Business Network Conundrum
Has Apple learnt the lesson that Dell never learnt?

Apple has grappled with this conundrum for a while now – when, if at all, to dump Samsung? There comes a point in every business network when the erstwhile suppliers become more powerful than the ‘customer’.

Dell continued to rely on its suppliers in far east while they were eating his lunch. Look where it landed Dell?

Dell’s supply chain conundrum is not well explained by the market analysts – many of its suppliers are also some of its biggest competitors.

Ten years ago, when Dell was a far bigger company that its much smaller suppliers it Asia, this did not matter much.

But they have now copied Dell’s business model to perfection – making its business model redundant. They won market share by under-cuting Dell in the market place, while Dell could not invent a newer business model.

No wonder Dell lost the competitve advantage it had created so assidously in the 90s by shrinking the cash-to-cash cycle and building volume.

Apple is concerned that Samsung is doing exactly the same thing to it in the mobile devices market.

While it continues to persist with its lawsuit against Samsung, it does not yet desist from continuing to buy critical components from Samsung.

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