PLEASE HELP!! Your initial post should be at least 250 words, include two sources, and be properly formatted using APA. The initial post should be posted by Wednesday, September 2 by 11:59 p.m. Also, respond to two of your peers by Sunday, September 6 by 11:59 p.m.

This weeks discussion is all about strategy and achieving competitive advantage. Well be talking about Apples strategic switch from outsourcing to insourcing and looking at excepts from a June 24, 2020 article from The Wall Street Journal.

Apple built its gadget empire by outsourcing production to a vast ecosystem of chip makers and other component specialists. It is now taking a lot of that business back write Mickel (2020) from The Wall Street Journal.

Apple, which released its first iPhone processor in 2010, plans to ship Macs this year with custom chips, a move that ends a 15-year technology partnership with Intel. (Intel stands to lose about $2 billion in laptop chip sales annually). Apple said the custom-designed chips are more efficient and offer higher-performance graphics.

The plan fits into Apples broader strategy of replacing many third-party parts with components designed in house. Apples built-for-purpose parts now account for 42% of the costs of core iPhone components, up from 8% five years ago. Custom components have cut costs, boosted performance and increased Apples control over future releases. The new Mac processors will shave $75 to $150 off the cost of that computer.

The strategy springs from Apples philosophyfostered by Steve Jobsthat owning core technologies provides a competitive edge. Customized chips and sensors can help its iPhone, iPads and Macs leapfrog rivals in battery performance and features. It also can protect Apple from Chinese rivals that buy universally available parts. Apple relied on third-party components for years while it built the engineering depth and expertise it needed to design more components itself. Apples chip division has mushroomed over the past decade to thousands of engineers.

The initiativecalled insourcingcan give Apple a 2-year jump on competitors in device performance because Apple can plan how multiple chips work together to limit power consumption and free up space inside iPhones and iPads for other components. Many companies continue to supply Apple, which provides substantial revenue, even as they fear Apple will start making the very components they provide it.

Classroom discussion questions:

1. What are the reasons Apple chose to insource?
2. At which level is this strategic decision made on the strategy-making hierarchy referenced in Chapter 2 of your text?
3. How is Apple achieving competitive advantage?

Mickel, T. (June 24, 2020). Apple is the newest chip giant in town. The Wall Street Journal. Retrieved from https://www.wsj.com/articles/apple-is-the-newest-chip-giant-in-town-11592910000?mod=djemlogistics_h