Innovation and Competitive Edge

This assignment analyzes how a company leverages innovation to gain a competitive advantage. It explores the concept of open versus closed innovation, drawing upon examples from companies like Apple to illustrate successful implementation. The text highlights the importance of adapting through innovation and discusses the role of clusters and networks in fostering innovation. Finally, it touches upon user-led innovation and its potential impact on breakthroughs.

Innovation within a business
and its environments
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EXECUTIVE SUMMARY
In the present business environment innovations at regular intervals has become very
important for long term growth and success of businesses. From the time, it has started carrying
out its operations, the brand has always tried to introduce products which are innovative and
unique from other brands available in the market. Some innovative products which are developed
by Apple includes iPhone and iPad which created has contributed a lot in the success of the
company. Apple is facing direct competition from brands like Dell, Lenovo, HP and Acer. The
company can make usage of strong brand image as well as rapid innovation process in order to
successfully develop as well as launch new lines of product. The mixture of product innovation
as well as business model innovation has put Apple at the centre. Further it has the market
approximately 30 times greater than its original market. The study concludes that greater
innovation being made by the business such as Apple. This has assisted the firm in increasing the
image of its brand in an effective manner. The company has greater potential to bring innovation
in future which would act as an aid in increasing the growth of the business for long run course
of time.
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TABLE OF CONTENTS
Introduction .....................................................................................................................................4
THE ORGANIZATION AND INDUSTRY OVERVIEW.............................................................4
The organization and its innovation History................................................................................4
The organizations existing innovation performance and capabilities..........................................4
The industry in 2016....................................................................................................................5
The Future of the industry 2020 and Beyond..............................................................................6
The organization innovation Requirements 2020 and Beyond .......................................................7
CLOSE THE INNOVATION GAP ................................................................................................7
Building the future innovation capabilities for the organization.................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES..............................................................................................................................10
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INTRODUCTION
In the present scenario, innovations at regular intervals has become very important for
long term growth and success of businesses. Further, it can be defined as the process of
generating idea, product or concept which is completely different from other market players. The
present report is based on Apple which is an organization that design, develop and manufacture
of consumer electronic products and different software. The brand is considered as one of the
leading brand in terms of innovations. This report highlights operations of Apple a along with its
innovative strategies and history.
THE ORGANIZATION AND INDUSTRY OVERVIEW
The organization and its innovation History
Apple is a leading brand and is American multinational technology company that is
engaged in designing, developing as well as selling customer electronics. The brand is carrying
out its operations in many counties of the world and is considered as highly innovative in term of
product development and marketing. From the day, it has started carrying out its operations, the
brand has always tried to introduce products which are innovative and unique from other brands
available in the market. Some innovative products which are developed by Apple includes
iPhone and iPad which created has contributed a lot in the success of the company (Linden,
Dedrick and Kraemer, 2011). At the time of introducing its products such as iPod in the market,
the brand was well aware of the fact that people needed a portable music player which can
deliverer better performance and has high storage capacity. The company worked upon this and
then introduced iPod which is a portable music player with high memory. It is also termed as the
most successful product of Apple in its entire history of innovation (Almirall and Casadesus-
Masanell, 2010). The brand entered smartphone market with iPhone 3GS which was highly
innovative in terms of speed and performance. On the other hand, innovation in term of security
were there in iPhone 5S and the 3D touch in iPhone 6s eliminated home button mobile phones.
The organizations existing innovation performance and capabilities
Apple has always considered different. It is the company that possess different view
regarding the world. It is one of the brand that has seeks for greater opportunity in creating best
products on earth. Diversity is regarded as critical for the innovation and its is important for the
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future of Apple. The company is regarded as the most innovative firm across the globe. The
innovation strategy of the business includes terrific new products as well as innovative business
models. The company is effective in making delivery of succession of presents. Apple is
effective in offering great software in amazing hardware that possess beautiful packaging
(Almirall and Casadesus-Masanell, 2010). The company has created game changing innovations
that includes iPod, iTunes, iPhone as well as iPad. Apple is pioneering into the new business
spaces and is creating new market niches. Competitors that chase Apple's latest releases
determine that they are far behind themselves when just few months later Apple has introduced
its latest as well as greatest offerings.
Apple has developed several stylish innovative products that has assisted the firm in
gaining top most position within the industry. Innovation lies in Apple's innovative business
models that is regarded as the new way for creating delivering as well as capturing the value. For
example, iPhone and iPod might not have greater impact in case they have not matched with the
iTunes as well as App store respectively. Thus it can be stated that systematic innovation is the
integration is regarded as the heart of Apple's success (Boudreau, 2012). Apple is working across
traditional boundaries of the industry in order to develop successful innovation friendly
ecosystem. The firm is into hardware, software, entertainment and in logistics. Further it has gain
expertise in all such industries in an effective manner.
The current success of Apple is associated with the potential of the business to make
utilization of its strengths and address the weaknesses, threats and exploits its opportunities. The
major capabilities that are being possess by Apple relates with stronger brand image, higher
margins of profit as well as effective process of innovation (Burgess, 2012). Apple is regarded as
the most valuable as well as strongest brand across the globe. Further the company is renowned
for its rapid innovated that are on the basis of company's intensive strategies related with growth.
With the assistance of rapid innovation the firm is able to keep itself updated with latest
technologies so as to ensure advantage over competitors.
The industry in 2016
In the year 2016, the smartphone and personal computer industry in which Apple is
working has become highly competitive. In the smartphone industry is brand is facing very tough
competition from market players such as Samsung. In last few years, Samsung has emerged as
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the biggest player in the market and has taken away market share of Apple to a great extent
(Dervitsiotis, 2011). Apple has always adopted for high price strategy due to the fact that its
products are highly innovative and good in terms of quality. On the other hand, Samsung
identified that there was a large pool of customers in smartphone industry which were having
need of smartphone at low or moderate prices. The company worked upon those needs and
introduced smartphones at convenient prices. At present Apple is using wide range of plans and
strategies to gain high market share and enhance its customer base. In term of its personal
computer industry, Apple is facing direct competition from brands like Dell, Lenovo, HP and
Acer (Gershon, 2013). All these brands have emerged with new products and moderate strategy.
It can be stated that in spite of tough competition in both the industry, Apple is the leading brand
in all across the world. The brand has recently launched its iPhone 6S which consists of latest
and the most upgraded technology which a phone can have. The product has received huge
success in different market and enhanced the sales and profits of Apple to a great extent.
Furthermore, it has been able to meet and satisfy demand of people in market in the best possible
manner.
The Future of the industry 2020 and Beyond
It can be stated that the future of smartphone industry in which Apple is operating is very
bright. The user of mobile phones are increasing at a very good along with the passage of time.
This means that there are adequate opportunities of growth and development that will be
available in front of companies which are operating in this industry. In addition to this, along
with increasing customers base, companies are also going to face intense competition in the year
2020 and beyond. This means that businesses will be required to be highly innovative in terms of
offering products and services to customers (Gladwell, 2011). The efforts on marketing,
advertisement and promotion will be also increased. On the other side of this, another industry in
which Apple is carrying out its operations will be facing variety of issues and challenges. The
growing use of smartphones among people in the market will result in declining the demand of
personal computer in 2020. There will be some innovations and changes done in term of design
looks, weight of personal computer but smartphones will become the biggest substitute of the
entire industry. As compared to these computers, mobiles has become more convenient and easy
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to carry. In addition to this, the features in phones are also large in comparison with personal
computers.
THE ORGANIZATION INNOVATION REQUIREMENTS 2020 AND
BEYOND
Apple will be required to carry out wide range of innovations in order to meet the
requirements of industry. The brand will find it very difficult to sustain in the marketplace in
situations if it offers same kind of products and services in 2020 and beyond. Mobile phones in
the future will include innovative technology such as augmented reality which is mostly used in
computers. Apple will be required to introduce this technology in its mobile phones in order to
stay competitive in marketplace (Gnyawali and Srivastava, 2013). On the other hand, it can be
stated that in the year 2020, people will be using mobile phones which consist of flexible
screens. Apple will also need to introduce phones with flexible and wider screens so that people
can play games and watch videos easily according to their convenience. Built in health sensors,
gesture controls, waterproof are some other features which Apple mobile phones will include in
the year 2020 and beyond. Furthermore, it can be stated that the biggest innovation which will
be required by the brand to do in its products is introduction of in built projectors in them
(Skibsted and Hansen, 2011). There are some products such as Samsung Galaxy beam which has
already introduced such kind of technology but it has failed in it. Therefore, the same technology
will be required to introduce by Apple if any of the brand in market adopts it.
CLOSE THE INNOVATION GAP
Building the future innovation capabilities for the organization
Opportunities affects the strategic direction of the firm. In case of Apple the major
opportunities with the business includes expansion of the distribution network, increasing
demand for tablets as well as smart phones and creating new product lines. Apple possess greater
opportunity towards expanding its distribution network. This opportunity is directly associated
with the weakness that relates with limited network of distribution of the organization. The major
need of the company is to bring alteration in its distribution strategy. With the assistance of
expanded distribution network business can reach greater number of customers within the global
market. Apple possess greater opportunity for exploring new product lines. The current product
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lines of the business are highly successful. By the means of further innovation Apple can
effectively introduce new product lines. Development of the new line of product can assist in
supporting the growth of the firm. Thus such dimension assist in examining that the business has
greater opportunities for further growth apart from aggressive competition. Tough competition
within the industry is partly due to the reason of aggressiveness among the business (Nambisan
and Baron, 2013). Apple faces tough competition from the firms such as Samsung which also
makes use of innovation. As a reason of aggressive behavior reflected by the competing firm it is
essential to possess stronger fundamentals that can assist in maintaining advantage over
competitors. Apple can make usage of strong brand image as well as rapid innovation process in
order to successfully develop as well as launch new lines of product.
Another major factor that is key driver of Apple relates with financial success. Such us
increasing adoption of Apple's product for business use. Time saving as well as reduction in the
frustration is considered the essence of Apple's brand promise. The mixture of product
innovation as well as business model innovation has put Apple at the center. Further it has the
market approximately 30 times greater than its original market. It has assisted in expanding the
market share of the business in traditional computer market as new customers are becoming
attached to the iPods that they have another look to the computers of Apple. The company has
made commitment to bring best user experience to its customers by the means of innovative
hardware, software and services (Magyar-Tábori, Dobránszki, da Silva, Bulley and Hudák,
2010). The business strategy of the firm leverages the its unique potential related with designing
and developing its own operating stem, hardware as well as application software and services in
order to provide its customers products as well as solution along with the innovative design. The
organization believes in creating high quality buying experience that assist in increasing the
range of customers for organization and assist in retaining the existing customers for the business
to a greater extent. Such is considered as the future capabilities that are being possessed by the
firm. This acts as an aid in enhancing the growth of the firm.
CONCLUSION
It can be concluded from the study that there are greater innovation being made by the
business such as Apple. This has assisted the firm in increasing the image of its brand in an
effective manner. The company has greater potential to bring innovation in future which would
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act as an aid in increasing the growth of the business for long run course of time. The company
has ensured innovation in performance with the aim to attain an edge over competitors within the
industry.
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REFERENCES
Journals and Books
Almirall, E. and Casadesus-Masanell, R., 2010. Open versus closed innovation: A model of
discovery and divergence. Academy of management review. 35(1). pp.27-47.
Boudreau, K.J., 2012. Let a thousand flowers bloom? An early look at large numbers of software
app developers and patterns of innovation. Organization Science. 23(5). pp.1409-1427.
Burgess, J., 2012. The iPhone Moment, the Apple Brand and the creative consumer: From
“hackability and usability” to cultural generativity. Routledge.
Dervitsiotis, K.N., 2011. The challenge of adaptation through innovation based on the quality of
the innovation process. Total Quality Management & Business Excellence, 22(5), pp.553-566.
Gershon, R.A., 2013. Digital media innovation and the Apple iPad: Three perspectives on the
future of computer tablets and news delivery. Journal of Media Business Studies, 10(1),
pp.41-61.
Gladwell, M., 2011. Creation myth: Xerox PARC, Apple, and the truth about innovation. New
Yorker. 87(13).
Gnyawali, D.R. and Srivastava, M.K., 2013. Complementary effects of clusters and networks on
firm innovation: A conceptual model. Journal of Engineering and Technology Management.
30(1). pp.1-20.
Linden, G., Dedrick, J. and Kraemer, K.L., 2011. Innovation and job creation in a global
economy: the case of Apple’s iPod. Journal of International Commerce and Economics, 3(1),
pp.223-239.
Magyar-Tábori, K., Dobránszki, J., da Silva, J.A.T., Bulley, S.M. and Hudák, I., 2010. The role
of cytokinins in shoot organogenesis in apple. Plant Cell, Tissue and Organ Culture
(PCTOC). 101(3). pp.251-267.
Nambisan, S. and Baron, R.A., 2013. Entrepreneurship in Innovation Ecosystems: Entrepreneurs'
Self‐Regulatory Processes and Their Implications for New Venture Success.
Entrepreneurship Theory and Practice. 37(5). pp.1071-1097.
Skibsted, J.M. and Hansen, R.B., 2011. User-led Innovation can’t create breakthroughs; Just ask
Apple and IKEA. Abgerufen am. 15. p.2011.
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