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Site & Situation Assignment

Published on Nov 20, 2015

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PRESENTATION OUTLINE

iPhone

Photo by » GUM «

SITE fACTORS

LAND, LABOR, & CAPITAL

MANUFACTURING LOCATIONS:

  • China
  • South Korea
  • Thailand & Malaysia
  • Czech Republic
  • US

SHIFT OF LOCATIONS

  • Originally manufactured in the US
  • Factories gradually moved overseas
  • Shift due to labor and input proximity
Photo by Knight725

INPUT LOCATIONS

  • Germany (Advanced Semiconductors)
  • Other parts of Europe (Chipsets)
  • South Korea & Japan (Memory)
  • Other parts of Asia ( Rare Metals)
Photo by perpetualplum

FACTORY LOCATIONS

  • Factories are clustered near inputs
  • Cost effective due to bulk- reducing manufacturing

FACTORY LABOR

  • Primarily semiskilled, Chinese workers of both genders
  • Wage: $17 per day or less, sometimes with food or shelter
  • Chosen due to fast ability to scale up and down & overall skill
  • Also chosen due to strong Asian supply chains
  • However, the industry is non- labor intensive

CAPITAL

  • Headquarters are located in Silicon Valley
  • Location due to generous banks who lend capital
  • Significant funds are given to technology companies, like Apple
  • Generosity is based off of past companies' success

SITUATION FACTORS

Photo by ecstaticist

PROXIMITY TO INPUTS & MARKET

  • Factories are located near inputs in Europe & Asia
  • Apple stores are located near large markets
  • Markets include America, Europe, East Asia, and South Oceania

WORLDWIDE APPLE STORE LOCATIONS

INFLUENCE OF TRANSPORTATION

  • Due to the bulk reduction of products, factories tend to be close to inputs
  • There is truck and rail transportation from inputs because of such proximity
  • After production, iPhones are shipped to break in bulk points
  • Because of expensiveness and small size, they are then sent off by plane
Photo by ponte1112

INFLUENCE OF tECHNOLOGY

  • New manufacturing advancements allowed new features
  • For example; Chinese glass cutting machinery allowed for glass screens
  • Rapid manufacturing technology growth occurred in Chinese plants
  • Such technology further promoted the oversea shift for manufactuers
Photo by Augapfel

PRODUCT TRANSPORTATION ROUTE

JUST IN TIME DELIVERY

  • Apple originally began with holding 90 days of inventory
  • It adopted the Just In Time model due to success from other tech companies
  • The model was made easier by the flexibility & availability of Chinese workers/ resources
Photo by jcwpdx