Sourcing Analytics (copy from dejunzhou)

Sourcing Analytics

Apple to select display panel suppliers

De-Jun Zhou

MSCA

Rutgers Business School

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Agenda

Assessing Needs
Market Intelligence
Bargain Power Analysis
Supplier Analysis
Supplier Score Sheets

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Assessing Needs

Match supplier selection criteria with Apple's needs

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Information Technology Enterprise Ranking - Total Revenue

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Industrial Trend - Industry Total Size

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Revenue vs. Cost

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Profit vs. Cost - Operating Income

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Operating Margin vs. Revenue

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Enterprise Breakdown - Revenue

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Display Panel Supplier Selection Criteria

Pricing (cost)
Capacity (production)
Quality (production)
Reliability (schedule)
Innovation (technology)
Financial health (longterm relationship)
Growth (longterm relationship)

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Market Intelligence

Analyze markets to identify the right suppliers

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Enterprise Distribution - Technology hardware, Storage & Peripherals

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Total Revenue - Technology hardware, Storage & Peripherals

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Industrial Trend - Industry Total Size

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Concentration and Competition Intensity - Total Revenue

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Concentration and Competition Intensity - Operating Income or Loss

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Concentration and Competition Intensity - Four-firm Concentration Ratio

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Technology hardware, Storage & Peripherals Enterprise Ranking - Total Revenue

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Technology hardware, Storage & Peripherals Enterprise Ranking - Total Revenue Growth Rate

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Technology hardware, Storage & Peripherals Enterprise Ranking - Net Income

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Potential Display Panel Suppliers for Apple

Since there is a limited number of display panel companies to choose in Technology hardware, Storage & Peripherals sub-industry, I can possibly choose the following two companies as potential display panel suppliers among all.

Samsung Electronics
BOE Varitronix Limited

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Bargain Power Analysis

Apple vs. suppliers on leverage

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Concentration and Competition Intensity - Total Revenue - Korea

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Concentration and Competition Intensity - Total Revenue - China

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Enterprise Trend - Size

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Supplier Analysis I

Size & Profitability

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Enterprise Comparison - Size

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Enterprise Comparison - Profitability

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Enterprise Breakdown - Revenue

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Enterprise Trend - Profitability

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Supplier Analysis II

Financial Health, Efficiency & Growth

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Enterprise Comparison - Financial Health

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Enterprise Breakdown - Liability-Equity

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Enterprise Breakdown - Assets

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Enterprise Breakdown - Detailed Assets

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Enterprise Trend - Financial Health

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Enterprise Comparison - Efficiency

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Enterprise Trend - Efficiency

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Enterprise Trend - Growth

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Supplier Score Sheets

Supplier ranking to meet selection criteria

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Samsung Electronics

	Excellent	Fair	Poor
Pricing			V
Capacity	V
Quality	V
Reliability	V
Innovation	V
Financial Health	V
Growth		V

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BOE Varitronix Limited

	Excellent	Fair	Poor
Pricing	V
Capacity	V
Quality		V
Reliability	V
Innovation			V
Financial Health	V
Growth	V

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Supplier Score Sheets Summary

	Samsung Electronics	BOE Varitronix Limited
Pricing	Poor	Excellent
Capacity	Excellent	Excellent
Quality	Excellent	Fair
Reliability	Excellent	Excellent
Innovation	Excellent	Poor
Financial Health	Excellent	Excellent
Growth	Fair	Excellent

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Display Panel Sourcing Strategy for Apple

Have Samsung as main supplier for their pro models

Have BOE as main supplier for their entry models

Train more display panel suppliers to compete with current suppliers in order to negotiate a lower price

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Sourcing Analytics (copy from dejunzhou)

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