Part 1

Find a company and describe its value chain, including its suppliers and customers. Explain how the value chain works for it and where the value is being added, directly and indirectly.

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part2

Apple has mastered the art of blending physical goods with services to create value for its customers. Think iPod + iTunes, iPhone/iPad + apps, Apple stores + Genius Bar; well, you get the picture. Managing all operations involved from the creation of goods and services through their delivery to the customer and post-sale services – which we call the value chain – is one of Apple’s core competencies. Operations expertise is as big an asset for Apple as product innovation or marketing, says Mike Fawkes, the former supply-chain chief at Hewlett-Packard. They’ve taken operational excellence to a level never seen before. Apple controls every piece of the value chain.

For example, managers and engineers often work at supplier and manufacturer sites to refine their operations, and designers work with suppliers to create new tooling equipment. When the iPad 2 debuted, Apple employees monitored every handoff point—suppliers, production, loading dock, airport, truck depot, and distribution center—to make sure each unit was accounted for and of the highest quality. Apple’s retail stores give it a final operational advantage. The company can track demand by the store and by the hour, and adjust production forecasts daily. If it becomes clear a given part will run out, teams are deployed and given approval to spend millions of dollars on extra equipment to get around the bottleneck. Apple’s significant profit margins are in large part due to this focus on operational excellent in its value chain.

1- Cite some other examples in which digital content has been combined with a physical good. How do you see the digital revolution changing the nature of physical goods in the future?