Managing Innovation: Apple's History and Performance

This report explores Apple's history of innovation, its existing innovation performance, and capabilities. It discusses the impact of innovation on Apple's market position and provides a SWOT and PESTLE analysis. The report also highlights the resources and strategic capabilities of Apple.

MANAGING
INNOVATION

EXECUTIVE SUMMERY
Innovation plays vital role in developing strong customers base. However, innovation
needs to be made as per the type of changes that take place within the taste and preference of
customers. As per the present repost, Apple is taken into consideration, with time there are many
changes and innovation that has made buy this firm and has developed positive perception
among the mind of customers related with quality and high brand recognition. This report covers
the history of innovation that is made up by this company. Further, it covers capabilities and
innovation performance of Apple.
As per the findings, it can be started that high emphasis is made by company towards its
research and development. They have considered all the aspect in which changes take place
within the taste and preference of customers. Accordingly, products and services are developed
in order to attract more and more customers. There are organizations that provide customers with
similar products and services. In order to be competitive, they make sure that they deliver their
products at high quality.

Table of Contents
EXECUTIVE SUMMERY..............................................................................................................2
INTRODUCTION...........................................................................................................................1
APPLE AND INDUSTRY OVERVIEW........................................................................................1
Apple and its innovation history.................................................................................................1
The Organisations existing Innovation Performance and Capabilities.......................................2
The Industry in 2016...................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Innovation management includes a set of tools which assist managers as well as staff
members to cooperate with a common understanding related to processes along with the goals. It
allows the enterprise to respond opportunities whether it is internal and external and have to use
creativity and innovation so that they introduce new ideas and products (Dodgson, Gann and
Phillips, 2013). Present report is about Apple which is an American multinational technology
company. Cited firm contribute effectively towards research and development and make sure
that innovation is made in order to attract customers. This report covers, the history of
innovations made by cited firm. Further, covers existing innovation's performance of cited firm.
APPLE AND INDUSTRY OVERVIEW
Apple and its innovation history
The technology industry have continued to take the leading edge in the market. The
innovations and unconventional methods used by this sector has lead to rapid development and
growth of the sector over the years. The industry have seen significant increase in the market
since 1980's due to continuous development of invention of tools and other technologies. The
development of information technology and digitalisation have expanded the market of the
companies beyond the domestic boundaries. The innovations are still taking place and is
expected to rise by the years (Bland, 2014).
Apple has shown rapid growth in IT and electronic industry. Focus of the company has
always been on offering innovative products and solutions to its customers. The company offers
personal computers, mobile phones, mac books, tablets, I pod, TV, electronic accessories,
software applications and many other IT and electronic stuffs. The strategies are based on
controlling of the software and hardware designs of all the products offered by it. Shares of the
company and profitability have rose by the years and specially in the year after the death of its
CEO and founder Mr. Steve Jobs in 2011. It is well known for its unique products and
innovations and is positioned as a leading brand in the international market.
Currently the company is on the risk of detaining from being world's most valuable
company. After few years of expiry of Steve Jobs the company started shredding the stock price.
The company is dealing with doubts that the greatest days of apple are over. Tim Cook the new
CEO of Apple have managed in maintaining the strategies and products built by Steve Jobs but

investors see no growth catalyst in the future. But the company is still an amazing and valued
brand.
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The innovation history of Apple involves the development of Apple I and Apple II,
drives, Apple silent type printers, etc., as mapped below in a chronological order-
 In the 1980's Apple III, printer IIA, monitor III, Apple image writer printers etc. were
launched.
 In the 1990's Power book 100, Quadra 950, Apple designed power speakers, Apple
network server, I mac etc. were launched.
 2000's innovations were Cinema displays, I pod, I book, Apple TV, I phone etc.
 In the 2010's I cloud, Mac book pro, I phone of series 4, 4s, 5s, 6, 6s etc. were developed.
I phone and Mac book are still conquering the market.
The four P's of innovation in Apple are:
 Product- The company focuses mainly on innovation of the products. Continuous
advancements of the products and innovation have taken place over the years.
 Process- The company aims on changing the processes and the methodologies for
delivering the products and services to its customers. They have always come up with
new processes be it I tunes or online shopping or something else (Qiu and Wan, 2015).
 Position-Apple has been successful in changing the position of brand among the
customers. Consumers have accepted its position from manufacturers to innovations and
creations of products offered.
 Paradigm – Apple has shifted its paradigm to designer products rather than computer or
software manufacturer.
The Organisations existing Innovation Performance and Capabilities
There are many organizations that deliver their customers with similar products and
services. In order to be better, cited firm make sure that understand the needs and requirement of
customers and accordingly make innovations in their product and services (Bernardo, 2014).
With time, there are many changes that are identified in taste and preference of customers and
Apple is one among the companies that develops innovation that revolutionize the taste of
people. There are many electronic products that are introduced by cited firm and this has made a
unique identity among the mind of customers. Further, there are many activities that are
considered and when these are not considered, then it has negative impact over the firm. Below
given are the SWOT analysis that enables to understand the areas in which they lack and other
areas in which they can make their future innovations. SWOT analysis for Apple is as follows:
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Strengths Weaknesses
 The that are being used by cited firm is
innovative and they make sure is to totally
different an unique (Duin, Ortt and Aarts,
2014).
 The Design and technology that is being
used is totally different and has unique
identity and enables to grab attention of
customers.
 High market share.
 One of the main issue of cited firm
related with incompatibility.
 There are only few products on
which they are dependent on.
Opportunities Threats
 Advancement in technology.
 Opportunity in areas like Apple cars.
 Growing market
 Market penetration (Smithson,
2017)
 Increase in use of laptop.
Below given are PESTLE analysis for Apple:
Political factor: There are different type of tax and interest rates that are being followed
within the different markets. When there are frequent changes ion the
these rates, then it affects the performance of cited firm as they have to
make changes in their price.
Economic factor: There two different conditions like inflation and recession. Market that
are facing this type of issues affects the purchasing power of customers
and this affects growth of the Apple in that particular market.
Social factor: Changes in taste and preference of customers take place frequently. It is
important for Apple to conduct market research so that they understand
preference of customers and make changes accordingly.
Technology factor: Changes in technology take place frequently and if Apple does not make
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changes, then it affects the satisfaction level of customers.
Legal factor: Different laws and policies are followed by markets and it is important
for the firm to follow them or else negative perception is developed by
customers.
Environmental
factor:
All the services should be of high quality and adequate and it should not
have any negative impact over environment.
Beside this, it is together important for Apple to conduct a prompt analysis of their
contenders operating on the market with a tool for competitors analysis named Porters model
with its five forces as stated below- Competitive rivalry- It is with a strong force of rivalry due to high aggression among
other similar firms in UK such as Samsung and LG, etc., who are continually heading
towards the tact of innovation. Bargaining power of suppliers- It is further associated with two considerate factors such
as a low switching cost at a strong force where it is easy for the organisations to switch
for another analogous commodities provisioned by Apple. However, it is together based
upon yet another clause of small size individual buyers at a weaken force that strengthens
the positioning of Apple. Bargaining power of buyers- It is entirely at a weaken force based upon two factors of
high number of suppliers with a high number of total supply of their products. Threat of substituent products- It is comparatively at a moderate position with high
accessibility of substitute products and low performance by them at a weaken state.
 Threat of new entrants- This constituent is together referred to be at a moderate position
with high capital requisition and high price of brand development being at a weaken force
along with a strong force of capacity for the potential new entrants to get into the market.
There are different set of activities that are included within the business. In order to make
them perform effectively and efficiently, there are many resources that needs to be considered by
the firm so that all the business operations can be performed in an effective manner. In this
context, below given are the resources that are helpful enough to determined the capabilities of
cited firm:
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Physical resources These resources are those which aid in providing and
offering best services to their consumers and the
facilities are in the form of machines as well as
techniques which they are using in providing the
services. The up gradation of technology succour in
providing services to target maximum consumers
(Management of innovation and creativity, 2017). The
technology is termed as physical resource because it
helps them to increase their number of consumers.
Financial resources These resources assist in building a name of company
in the competitive market. Apple has to take large
amount of money from banks as a loan so that they
can do developments. Now, they are having wide
range of shareholder so that manager or higher
authorities of Apple improve the goodwill of firm.
Stakeholders of company are investing because they
are delivering best services to the services users.
Financial resources helps them to increase their
service efficiency. Further, for all the activities, it
requires proper financial support and if there is no
proper planning, then it affects the operations that are
being planned by the management.
Human resources Consumers as well as employees of Apple have to use
proper and appropriate resources by providing better
facilities and services. The business entity is having
good human resource which helps in doing good and
best work. These employees help them out to be
cheated by someone and helps them for surviving in
competitive market. Employees are the face of
organization as they have direct interaction with
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customers, they are the one present the products and
services that are delivered by the firm. In this context,
organization make sure that all the workers are skilful
and capable enough to support management in
achieving goals and objectives.
Strategic capabilities The manager of company have to maintain those
strategies which helps them in become different from
the others in the market. So, firstly they have to check
themselves that the employees are capable in meeting
the needs and demand of consumers and markets.
They have to value to their customers. They have to
take care about the interest of their consumers. Staff
members have to maintain ethical value which is
based on business so that they can work for the
welfare of consumers not against to them
The Industry in 2016
The above conducted analysis reveals that the technological industry has evolved by the
years to a great extent and has shown remarkable growth in the past and is expected to grow in
the future years as well. The technological revolution in the global markets have opened many
opportunities for the companies functioning in this sector (Chesbrough, 2013). Innovations and
inventions are the major reasons behind the development of this industry. These innovations
have reduced human efforts and have comforted the operations of human lifestyle. The
enhancement of electronic devices and information technology have greatly contributed in the
success of Apple.
Apple has been successfully in matching the trends and technologies and moreover it has
brought the trend of various products offered by it. Innovations in products and launch of
completely new products in the market have lead to the international market success. It has also
been able to achieve customer satisfaction. Consumers buy the product just by looking at name
of the Apple on it. This much trust of consumers is obtained by it. Leading technology demands
innovation in many sectors. Apple have established success as manufacturers and designers as
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well. However, growth of Apple company is doubted in the future years. Maybe because of the
change of head it has decreased the quality of innovation and invention.
Apple should work on its products offered. There are many competitors in the market
offering good features and services. Innovations in products are the way for giving tough
competition. Apple could launch products at affordable prices for common man as most of the
population in the world is middle class. Keeping high prices of I phone could lead to a reduction
in mobile market shares. It should try to lower the costs of Apple watch and I phone. The
company should increase its penetration in the market of still uncached countries. The processes
could be improved by focusing on market development of all its products. Corporation with
Microsoft could lead to new ways and opportunities (Oh and et. al., 2016).
Apple has limited distribution network. It should increase its number of distributors for
better results. Though the position of apple in the minds of consumers is good but many
complaints regarding batteries of I phone and other products offered are recorded. It should work
on the complaints and try to offer better products. The shift of paradigm is successful but the
market share of manufacturing and designing is still limited to high end market. It should
increase the sales beyond the high end market (Kain, Hwang and Warner, 2015). Apple should
adopt strategies and plans to deal with rising labour costs in many countries. It should locate the
plant in the locality where labour costs are low or another option could be not recruiting
employees of that locality and in turn provide workers from other countries or areas. It should
also increase the advancements in the products so that other companies could not imitate the
products offered by Apple.
CONCLUSION
From the report, it can be articulated that it important to make sure that proper research
and survey is conducted. With time there re changes that take place within the type of services
that are preferred by customers. Research and survey enables to determine the taste and
preference of customers and accordingly changes are made. Further, employees should be
monitored properly so that the areas in which they lack are identified. As per the findings, they
should be delivered with training. This way the skills and capabilities that individuals possess
can be raised. Fin addition to this, financial planning is important so that all the activities that are
planned can be completed.
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REFERENCES
Books and Journals
Bernardo, M., 2014. Integration of management systems as an innovation: a proposal for a new
model. Journal of Cleaner Production. 82. pp.132-142.
Bland, M., 2014. Finding more than one worm in the apple. Communications of the ACM. 57(7).
pp.58-64.
Chesbrough, H., 2013. Open business models: How to thrive in the new innovation landscape.
Harvard Business Press.
Dodgson, M., Gann, D. M. and Phillips, N. eds., 2013. The Oxford handbook of innovation
management. OUP Oxford.
Duin, P. A., Ortt, J. R. and Aarts, W., 2014. Contextual Innovation Management Using a Stage‐
Gate Platform: The Case of Philips Shaving and Beauty. Journal of Product Innovation
Management. 31(3). pp.489-500.
Kain, Z. N., Hwang, J. and Warner, M. A., 2015. Disruptive innovation and the specialty of
anesthesiology: the case for the perioperative surgical home. Anesthesia & Analgesia.
120(5). pp.1155-1157.
Oh, D. S., and et. al., 2016. Innovation ecosystems: A critical examination. Technovation. 54.
pp.1-6.
Qiu, J. and Wan, C., 2015. Technology spillovers and corporate cash holdings. Journal of
Financial Economics. 115(3). pp.558-573.
Online
Management of innovation and creativity. 2017. [Online]. Available Through.
<http://www.gcu.ac.uk/study/modules/info/?Module=MHN222487>. [Accessed on 20th
March 2017.]
Smithson, N., 2017. Apple Inc. SWOT Analysis & Recommendations. [Online]. Avaialble
through: <http://panmore.com/apple-inc-swot-analysis-recommendations>. Accessed on
[20th March, 2017].
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