In October, Apple launched one of its most innovative iPhone designs yet: the iPhone 5S. The long-awaited release was a great success and customers lined up hours prior to the release to get their hands on the device. However, Apple’s supply of the handset was quickly depleted at both online and local Apple Stores, a trend that continued as sales of the phone rolled out around the world. Apple greatly under estimated the demand for the new iPhones 5S. One of the speculated reasons is because of its simultaneous release with the iPhone 5c. Could this have harmed Apple? Could they have earned more revenue from an extra supply of iPhone’s? Could they have lost potential customers who would have switched to other alternatives?

The answer to all these questions is YES! Had Apple correctly estimated the level of demand, they could potentially have gained greater revenue while also satisfying more customers. Moreover, customers would not have been inclined to wait long periods of time for products, which consequently shifted preferences to Samsung and HTC. Had Apple done correct market research, they could have gained from potential sales revenue and satisfied more customers.

 

Source:  http://www.bbc.co.uk/news/technology-24160158

Maruti Suzuki India Limited (MSIL) has been established and incorporated since 1983. MSIL is a subsidy of the Suzuki Motor Corporation, Japan. Maruti Suzuki has been renowned for producing the most fuel efficient, affordable and reliable cars and therefore has been the leader of the Indian car market for over the past two and halve decades.

On 18^th July 2012 at Maruti’s labour plant, industrial disputes broke out when workers became aggressive and over 96 staff members were injured while also leading to the death of a human resource manager. More then two-thirds of the employees were involved in the strike, causing Maruti to lose about INR 75 crores ($11.81 million) in revenue and INR 8 crores ($1.3 million) in operating profit daily while also halting Maruti’s production line causing it to lose around 1200-1400 units daily.

The reason behind the dispute was perceived that pay disparities between permanent and contracted laborers and also the company’s refusal on forming another labour union triggered the outbreak. As the company acted unethically by paying different wages to each group of laborers, they chose not to make most of their contracted workers permanent and hence caused a large miscommunication between the management and the labour unions.

 Appendix 1 – Pay Packages

 Appendix 2 – Decrease market share in 2012 due to dispute

Appendix 3 – Quarter 2 results. 2011 vs 2012

 

Bibliography:

1 – http://www.marutisuzuki.com/about-us.aspx>.

2 – http://www.marutisuzuki.com/Maruti-Suzukideclares-lock-out-at-Manesar-Plant.aspx

3 – http://www.inautonews.com/the-closing-of-manesar-plant-costs-maruti-a-15-20-profit-loss

4 – http://www.business-standard.com/india/news/has-maruti-foundsolution-for-its-labour-woes/496280

5 – http://articles.economictimes.indiatimes.com/2012-09-14/news/33844343_1_diesel-models-maruti-suzuki-manesar