Operations Management - 'iPhone' Supply Chain Management and Networks Essay

Operations Management - 'iPhone' Supply Chain Management and Networks - Essay Example nded that Schumpeter’s â€Å"creative destruction† analogy is central to effective operations management and the supply chain network in the contemporary business model and envisaged entrepreneurial vision as the force of sustained, long term economic growth, with the gales analogy symbolic of the destruction of monopolistic markets, which facilitated abuse of market position and power (Reinert, H., & Reinert, E.S., 2006) Schumpeter further argues that internal innovation within a business operational framework produces lower costs, which in turn permits companies to sell products at lower prices, which is referred to as dynamic efficiency (Utterback, J. 1996). This in turn highlights a key element of Schumpeter’s model that competition for innovation as opposed to competition for customers is the most important (Utterback, J. 1996). Indeed, the proliferation of Apple’s growth as a brand and business phenomenon in the digital arena arguably symbolises Schumpeter’s â€Å"creative destruction† model in its operations management and supply chain as it â€Å"enables organisations to control the quality of inputs and the opportunity to expand using existing skills† (Boddy, 2005). Moreover, Schumpeter’s view of entrepreneurial innovation embodies the â€Å"gale of creative destruction† as the continuing cycle of innovation, which renders existing technology, skills and equipment obsolete. Innovation in this context essentially becomes essential as the foundation of dynamism in line with Schumpeter’s theory that the evolution and sustainability of a successful business model is not dependant on how capitalism administers existing models, but rather with how it destroys them through creativity to survive long term growth (Metcalfe, J.S. 1998). From Schumpeter’s â€Å"gale of creative destruction† theory proposition, large companies benefit from economies of scale associated with segmented working practices, and in addition technological advances are generally