A B S T R A C T
This paper uses a business model framework to analyze the main limitations of Apple Inc.
post-2003 , a significant turning point in the company’s history. As such, we move beyond
an exclusive focus on what makes Apple unique or different by evaluating the mundane
and out-dated elements of its business model. To do so, we examine the end-to-end supply
chain , from source to store, to present a more holistic evaluation of the Apple business
model. Drawing on the existing literature, we argue that the quintessential element of
the Apple business model is its ability to ‘own the consumer’. In short, the Apple business
model is designed to drive consumers into its ecosystem and then hold them there, which
has been hugely successful to date and has allowed Apple to wield enormous power in the
end-to-end supply chain. We demonstrate this through a detailed evaluation of Apple’s
physical and content supply chains and its retailing strategy. Moreover, we find that the
very business processes that enable unparalleled corporate control bring with them new
problems that Apple has thus far been unable, or unwilling, to adequately address.
© 2013 Elsevier Ltd
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