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QuestionsCategory: Business QuadrantDoes Apple and diary farm company have "scalable system" ?
Lim Marko asked 6 years ago

Hi guys,
A very good morning to everyone!!!! After reading the annual report for Apple and dairy farms,  I had decided to identify the growth Drivers for both of this company and getting stuck at this particular question, “does Apple have the growth driver of scalable system” ?
while  having this question stuck in my head, I had decided to continue identifying the growth driver for dairy farm and I had ask myself the same question for dairy farms and I am having issue with it as well. 
So may I know what would you do , if you are not sure whether the company have or don’t have a certain factor? 
Thanks for the enlightenment !!!
Marko Lim

Isabel Ling replied 6 years ago

i am also interested in your question that is unanswered. So do they have the scalable system? especially with the on-slaught of all things internet. its impact on retail – dairy farm.

Isabel Ling replied 6 years ago

one other thing about this IT system. This is nothing new in the industry. Nestle and lots of manufacturing companies are using similar systems. It is just that whether they roll it out earlier or later due to cost or resources.

Lim Marko replied 6 years ago

Sorry for the lengthy post… I am not perfect please correct me if I am wrong.. Disclaimer: I hold both Apple and dairy farm stocks

You ask: so do they have the scalable system? Especially with the on- slaughter of all thing internet

So In order to answer that question for dairy farm, first we meet to know how dairy farm make money..

They have 4 segment:

1. supermarket, hyper market and convenient store
2. Health and beauty store
3. Home furnishings
4. Restaurants

Dairy farm currently earn the bulk of their revenue from the first two segment market & convenient store and health & beauty store.

As for the Supermarket, hypermarket and convenient store, the supplier actually bids for the shelf space in store and that place will be reserved for that product.. As for how frequent will the suppliers come and top the products will depends e.g bread like sunshine brand they will top up 2times weekly and take back the breads going to expired for beer tiger the supervisor of the store wil stock check daily and order… so the supermarket & convient store segment definitely can scale up fast

For the health and beauty segment if I am not wrong also follow the same approach…

For Apple it has 5 segement product breakdown

1. Iphone
2. Ipad
3. MAC
4. Service
5. Other product

For Apple the largest revenue comes from iphone about 60% of total revenue!!! From what I notice, Apple phone are normally made In batches. They can ramp up thier production fast as they have lots of supplier to suppport them..

I don’t think with the on-slaughter of all things internet can hurt Apple sales

Back to dairy farm I do agree it will hurt dairy farm to a certain extent and personally I can’t really judge how much it will get affected. From what I see there will be a group of people will still like to hand pick thier fresh product e.g meat, veg, fruits etc yourself.. As for the rest like dry stuff people don’t mind to order online… so I really will keep an eye on it because my money is at stake!!!! Hahas sorry for the Long post

Your sincerely
marko Lim

Isabel Ling replied 6 years ago

apple is more resilient. But dairy farm, can experts comment please with Alibaba and Amazon promising delivery within 2 hrs?

Victor Chng replied 6 years ago

There is chances that Dairy Farm may be disrupted by Amazon Prime. Have to monitor it closely

1 Answers
Victor Chng answered 6 years ago

Hi Marko,
Before you want to dive into the scalable system, do you know how Dairy Farm generate revenue?

Lim Marko replied 6 years ago

Hi Victor,

Thanks for the enlightenment. Diary farm biggest revenue contributor is by hype/super market segment. So normally in the hype/super market, there will be a IT system in place to to keep track all the remaining product left on the shelf and warehouse. If the stocks were to run low the supplier will come to top up…

If i am not wrong, hype/super market earn their revenue by this two methods.

First it is by selling the product at customer prices. Normally the supplier let the hype/super mart know how much the retail price and how much they will charge customer for, for that particular product. The difference between the two will be dairy farm revenue

Second it is buy selling shelf space. Normally if a supplier want display their products in hype/super market they need to pay because it occupies a certain amount of shelf space mart. The more expensive ones will be the refrigerant section…

Thanks for reading through… Have a nice day and thanks for everything

Marko Lim

Victor Chng replied 6 years ago

No problem Marko. You are right on their revenue generation. Keep up the good work