So, I read the Harvard review article from yesterday, "Apple's Greatness, and its Shame." As I read my mind kept returning to the fact that this is a prime example of the weakness of the suppliers power and Porter's five forces.
I thought, there are two ways to look at this situation. First, was to take the view of the author, and say that Apple has the power to dictate to companies what they do and how they do it. Somehow inferring that because of Apple's size, they should take full responsibility for the actions of their suppliers half way around the world. Was the author making a plea for the Chinese labor force, the Chinese people? Or was he looking to make Apple raise it labor costs from $10 an iPhone to $30 an iPhone. At which point taking shipping and taxes into account would it be more feasible for Apple to return its labor force mainly to the US. Or would it simply open up a competitive advantage for other hardware producers, not held to so high a standard to get an edge into the market. In which case, this humanitarian plea for the Chinese worker could possibly hurt the very workers it is trying to help.
Or secondly, I believe that Apple is like most every other business in the world. They look fo what can produce the most profits. So I believe that the responsibility should not be put on Apple, and it should not be put on the consumer either. The responsibility should be left where it rightfully is "IN THE HANDS OF THE SUPPLIERS THEMSELVES!" Why? Why do people, Americans particularly, believe that they can push responsibility to those that they believe can afford the weight of the responsibility. We all deserve to, and should have the right to claim accountability for our actions. The suppliers should be held responsible, the workers should be held responsible and no one else. The author was looking at the Chinese working condition from his own viewpoint. Obviously, if the worker's lifestyle wasn't increasing at all they would revolt, which eventually through the natural course of things, they will. And they will be stronger because of it. I believe that the American people are weak because we feel entitled, because everything has been given to us from the hardships of our forebears. It would go completely against all business strategy to demand that suppliers increase their labor cost to charge us more.
I believe that it is not Apple's responsible to force their suppliers into action. They are responsible to find a strategy to make money for themselves, that is business. Apple strives produce high end, innovative hardware with the highest posible margins. Without such margins, how could Apple afford to spend million's every year in R&D.
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