Final answer:
Apple Inc. gained value by outsourcing iPhone assembly to Foxconn in Asia, enabling cost efficiency and scalability. Outsourcing allowed Apple to focus on innovation while benefiting from lower production costs, despite criticisms of the supply chain labor practices.
Step-by-step explanation:
An example of an organization that has created value through outsourcing part of its supply chain is Apple Inc. The tech giant outsourced the assembly of its products, such as the iPhone, to specialized manufacturers like Foxconn in Asia, which contributed to cost efficiency and scalability.
Outsourcing has been a significant aspect of global business strategies, especially for companies in developed nations facing high labor costs. Apple Inc. exemplifies a successful application of outsourcing, having split its value chain across various countries to leverage comparative advantages, such as lower labor costs and specialized manufacturing capabilities. By designing and engineering in the United States, sourcing components from various international suppliers, and assembling the final product in China, Apple has been able to minimize production costs and maximize profits.
This strategic move allowed them to focus on their core competencies, such as design and innovation, while relying on the outsourced entities to handle large-scale production efficiently. However, concerns over working conditions in outsourced factories have led to criticism of the company's supply chain practices. Nonetheless, the company's ability to deliver high-value products to the market at competitive prices has established it as a leading player in the tech industry, attributing to outsourced supply chain management.