Apple’s Secret Weapon: Logistics as a Competitive Tool

If you have an Apple store in your neighborhood, chances are it’s always bustling with activity. There are statistics to match that perpetual popularity, as well. ClickFox, a company that analyzes customer experience statistics, found that Apple emerged as the leading brand that customers can’t live without, accompanied by other well-known names including Amazon and Starbucks. However, Apple isn’t just great at cultivating customer loyalty. It also excels in logistical matters, and many say this strength is yet another factor that sets it apart from competitors.

Technological Advancements at a Lower Cost

Apple products are known for helpful features that make the user experience much more pleasant. For example, the MacBook Pro features a green light at the top of the screen that activates when the internal camera is turned on. That feature might seem relatively run-of-the-mill, but there was a great deal of thought and engineering that went into making it work. That’s because the body of the MacBook Pro is made from aluminum, a material that’s too thick for light to shine through.

One of Apple’s design experts, Jony Ive, recruited a team of experts to figure out how to develop that feature in a feasible way. Eventually, it was decided that a customized laser was necessary to cut a hole in the computer body. The opening was too small to be seen by the naked eye, but just large enough to allow the green light to shine through. Apple has since signed an exclusivity agreement with a laser manufacturer, allowing Apple to enjoy proprietary technology at a fraction of the usual cost that other companies might bear.

Shutting Out Competitors

It’s also been speculated that exclusivity agreements have been responsible for why competitors haven’t yet been able to come up with a tablet that’s a serious competitor for the iPad. An article on The Next Web, a technology website, says that the Apple Corporation has the advantage of huge cash reserves and manufacturing investments, which combine to prevent competing manufacturers from having access to parts for their own devices. Some analysts believe that these practices stifle innovation in the industry at large. Exclusivity deals like the ones signed between Apple and parts providers mean that other companies that come along too late are shut out from the best technologies. Even if another company has money to spare for a part that Apple has already laid claim to, there’s nothing left to do but wait until the exclusivity contract expires.

Hewlett-Packard’s latest attempt at making an impact in the tablet industry comes by way of a product called the HP Slate 7. In 2011, Hewlett-Packard tried to compete with Apple by releasing the TouchPad, but the outcome was so bad that the company ultimately had to liquidate stock by selling the tablets for as little as $99, a full $400 off the retail price. However, a blog post on Liliputing says that reviews mention how even though the HP Slate 7 is being positioned as a budget tablet, it looks and feels inexpensive, too. Perhaps this is because exclusivity contracts are preventing Hewlett-Packard and competitors from getting access to better parts.

In closing, although Apple’s supply chain isn’t helpful for competitors who want their own piece of the pie, it could be seen as an advantage for consumers. Although Apple products tend to be pricier than other comparable options, they also come with innovative engineering and sturdy materials, and those characteristics are likely in large part to Apple’s iron-clad logistics methods.

Writer Stacy Hilliard is a guest blogger for business sites. Interested in learning more about leading a business that is as successful as Apple? You might want to look at the MBA program offered at Northeastern University.