Core Competencies of Apple's Product: Innovation and Business Development

Running head: Core competencies 1
Innovation and business development
Core competencies of Apple’s product

Core competencies 2
Contents
Introduction......................................................................................................................................3
Identifying Opportunity...................................................................................................................3
Innovation........................................................................................................................................3
Impact of iphone on Smartphone Market........................................................................................4
Impact on iPhone on Smartphone Technology................................................................................4
Innovation Model: iPhone is a Technology Push innovation model- why?....................................4
Drivers of Innovation of iPhone......................................................................................................5
Stages in Product Innovation of iphone...........................................................................................5
Innovation Type of Iphone..............................................................................................................7
Product Design of iPhone................................................................................................................7
Barriers to Innovation of iPhone 1st generation (2007)..................................................................7
Core Competencies of Apple...........................................................................................................8
Swot analysis of iPhone 1st generation (2007)................................................................................9
Porter’s Five Forces iPhone 1st generation (2007)........................................................................10
Pestle Analysis of iphone 1st generation (2007)...........................................................................11
Competitive Analysis.....................................................................................................................12
References......................................................................................................................................14

Core competencies 3

Core competencies 4
Introduction
Innovation is integral process for every company as it helps to bring effective changes in the
organization. The description will be made on mobiles technology and this report will describe
about the innovation of Iphone. Iphone is the product of Apple Company that brings huge
changes in the world by providing effective technology to everyone. The impact of Iphone on
smart phone market and Smartphone technology will be mentioned. The depth information will
be collected such as innovation model, drivers of innovation of Iphone, stages of production and
innovation type of iphone. A core competency is effective approach for the company that help to
distinguish an organization in marketplace. Swot analysis, porter’s five forces and pestle analysis
are approach that help to draw the effective conclusion regarding the chosen product. These will
be made on iphone 1st generation 2007.
Identifying Opportunity
Mobile is an effective innovation that can be utilized to communicate over long distances
without wires. Mobiles were not effective until the launch of Iphone as it provided limited
features to the user such as low quality camera, slower keyboard, lack of Wi-Fi connectivity, less
battery backup and heavy body of the phone. There were some examples of some companies’
product that provided these features to users such as BlackBerry Curve 8300, Nokia N95, Palm
Treo 65, Samsung Black jack, Sony Ericson K800i and Motorola RZR. They were lacking to
provide the feature of effective camera, improper operating system, slow run process and heavy
body of the phone. The best features of this phone in that time was new track pad with
navigation, camera services, 2G net services and availability of phones in different sizes, shapes
and prices.

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Innovation
There were lack of services in smart phones and the first generation of Iphone was announced on
January 9, 2007. It was announced in the United States on June 29, 2007. The feature of this
phone is quad-band GSM cellular connectivity with GPRS and EDGE support for data transfer.
There are various features in Iphone that makes it stand out. It provided its own operating system
which is a revolutionary multi touch interface. It could be controlled by fingers (Teece, 2010).
The display of phone was gigantic which had 3.5 inch display and had resolutions of 320 x 480
pixels. Internet connectivity with web browser but only for 2G cellular had been provided. Along
with that there are various features in it such as 2-megapixel photo camera, YouTube and Google
Maps applications, Google Search, iPod music / video player with support for iTunes.
Impact of iphone on Smartphone Market
The market of Smartphone was influenced adversely due to innovation of Iphone with lots of
features. It has been found that Apple has made more than $730 billion since 2007 by selling 1.2
billion phones (Wood and Schwab, 2013). Innovation in mobile phone attracts many customers
to switch from smart phone to iphone due to its effective efficiency and latest IOS. The market of
Smartphone was decreased due to innovation of Iphone in the market (Chesbrough, 2010). Flip
phones and phones with split keyboard and screen were standard before launching of Iphone.
However, the market of smart phones were not flopped due to market segmentation because the
price of this new innovation was quiet high which was not possible to afford by middle level
person.

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Impact on iphone on Smartphone Technology
The Smartphone technology got influenced due to innovation of Iphone with effective
technology. Smartphone required bringingthe change in its technology to compete with Iphone
which bring the concern of huge investment. The very first operating system of Iphone was IOX
which converted into IOS Software. The IOS software was launched by Apple Company in its
Iphone which made it so popular. This software allows working like a computer system, touch
screen applications, faster process, designed to be mobile (Gazdecki, 2016). This new technology
impacted the Smartphone technology as more people switched from smart phones to Iphone. The
technology of Smartphone was fallen and people start to prefer Iphone as it provided number of
features.
Innovation Model: iphone is a Technology Push innovation model- why?
Technology push model is when research in new technology brings the development in new
products. It is not included in market research. It leans to initiate with a company producing an
innovative technology and affecting it to a product. Iphone 1st generation was a technology push
model because Apple did not conduct market research and never looked the strategies were
adopted by its competitors (Dala-Ali, Lloyd and Al-Abed, 2011). There was no external focus
and solely focused on technology push approach. An Apple company was completely relied on
intuitions and perfectionism to bring innovations in the organization. It was done by Apple
Company as argued by Apple’s Senior VPs and he said that “customer do not have idea about
their desires and want, you have to tell them what to buy”. (Wen, 2014). It is the strategy of
Apple Company to produce effective product with latest technology which will force people to
use it. It has been found that Apple Company has not pre-determined process to promote
innovation because at its place, it is about open-mildness, collaboration and opens