QUESTION TWO [25] Read the following case study and answer the question that follows: Apples Supply Chain Vulnerability Apple has an extensive network of third-party suppliers in its supply chain. According to recent research, Apple has 785 suppliers in 31 countries worldwide, 349 of which are based in China. A security researcher has detailed how he was able to hack into systems belonging to Apple, Microsoft, PayPal, and other major tech companies in a novel software supply chain attack. Bug hunter Alex Birsan detailed in a blog post published yesterday (February 9) how he gained access to his targets internal systems by exploiting a vulnerability dubbed dependency confusion. Dependency confusion is the name given to a vulnerability that can allow an attacker to execute malware within a companys networks by overriding privately-used dependency packages with malicious, public packages of the same name. Apple executives warned that the group could sustain a hit of up to $8bn in the current quarter from headwinds including supply chain shortages and factory shutdowns in China, underscoring how the challenges posed by the pandemic are far from over for the worlds most valuable company. Supply constraints caused by Covid-related disruptions and industry-wide silicon shortages are impacting our ability to meet customer demand for our products, Apples finance chief Luca Maestri told analysts on Thursday. We expect these constraints to be in the range of $4bn to $8bn, which is substantially larger than what we experienced during the March quarter, he said, adding that Covid-related disruptions are also having some impact on customer demand in China. Apples stock, which rose 4.5 per cent in Thursdays trading session, initially gained 2 per cent in after-hours trading following the earnings report, which showed the iPhone makers revenues had risen 9 per cent from a year ago to $97.3bn in the first three months of 2022. That was well above the $94.1bn expected by analysts. But shares subsequently reversed course to fall more than 4 per cent after the call during which executives detailed the challenges ahead for the company. Covid is difficult to predict, said Apples chief executive Tim Cook. And I think were doing a reasonable job currently navigating what is a challenging environment. The comments highlighted that the tech group, known for the sophistication of its supply chain, was braced for a period of prolonged uncertainty this year. Pre-pandemic, Apple routinely offered quarterly revenue guidance, but it stopped doing so as coronavirus spread. The projected $4bn to $8bn hit for the June quarter compared with a more than $6bn dent in its revenue in the December quarter, and was the starkest warning Apple has offered since February 2020, when it signalled a slower return to normal conditions than we had anticipated. The 2 pessimistic commentary on supply chain woes came after Apples March quarter results showed a 6 per cent jump in net profits to $25bn, making it Apples third most profitable quarter on record despite not being a holiday period. Maestri cited silicon constraints in the supply chain. Reports have indicated that Apple has prioritised the chips it has for the iPhone rather than the iPad. Regionally, results were mixed. Apples board also authorised another $90bn of share buybacks and raised its dividend 5 per cent, the 10th straight annual increase, according to Maestri. Analysts had called the report more important than usual given broad concerns about the health of consumer spending amid higher inflation. Zino applauded Apples aggressive moves to please Wall Street with buybacks and dividends and characterised its overall results as extremely good. Source: https://www.ft.com/content/5e3a4e49-151d-4e83-b7ca-c532addba11e Question: Determine how Apple could gain a more significant competitive advantage by creating a competitive supply chain.