Disruptive Innovation by Apple

RUNNING HEAD: Disruptive Innovation 0
Apple
Disruptive Innovation

Disruptive Innovation 1
Contents
Introduction................................................................................................................................2
Level of Disruption....................................................................................................................3
Affected footholds..................................................................................................................3
Affected stakeholders.............................................................................................................3
Review of enabling factors.........................................................................................................4
Country...................................................................................................................................4
Industry...................................................................................................................................4
Entrepreneurial ecosystem......................................................................................................5
Conclusion..................................................................................................................................5
References..................................................................................................................................7
References..................................................................................................................................9

Disruptive Innovation 2
Introduction
The disruptive technology states to a technology whose application considerably affects the
way a market functions. The products of Apple have been designed to work simply and
productively. It helps employees to solve problems in creative ways (Christensen, Raynor and
McDonald, 2015). Apple is an American transnational technology company which designs,
advances and trades user electronics, computer software, and operational services. The
company was established in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. The
innovations of Apple are explained below:
iPod: iPod started the digital music revolution. The music player launched by the company in
2001 and it could store almost 1000 songs. The latest models added functions like photo and
video-viewing capabilities. iPad offers complete multimedia experience and allows users to
download application along with the games.
Graphic user interface: Apple produced the first commercially popular computer to use a
graphic user interface- Macintosh. It was invented in 1984 and used desktop metaphor to
monitor operators around the computer with papers signified as sheets of paper.
iMac: iMac was first invented in 1998 and marked as the major tech player. The company
ripped up the computer design rulebook and replaced with the fun and luminous machines.
iTunes: iTunes is music software of Apple to organize songs, playlists, and copy tracks. It has
frolicked a massive character in the digitization of the music industry. The invention of
iTunes has killed off the traditional album release (Nagy, Schuessler and Dubinsky, 2016).
Mac OS X: Apple’s OS X operating system was debuted in 2001. It is admired for its
classiness, ease of usage and modest edge. It comprises structures like the spotlight search
function, cover flow-style finder, video conferencing software and iChat instant messaging
has attained popularity among the users.
iPhone: It was launched in 2007 and is the greatest invention of Apple. It combined features
like internet browser, music and video player along with the capability to make and accept
calls.
Newton: Newton is a touch screen private digital assistant. Commercially it was a dank squib
and still recalled for the neat interface and handwriting recognition.

Disruptive Innovation 3
Apple ll: It was invented between 1977 and 1993. It is one of the most prevalent personal
computers and extensively used in US schools and homes. It introduced VisiCalc to the world
which is a pioneering spreadsheet program.
Keynotes: The company turned the product launch into the art form. The aspects of the
presentation were rehearsed to ensure that all the participants were pitching perfectly.
MacBook Air: MacBook is super thin, ultra-portable and fully featured laptop. It is the
world’s thinnest laptop. It runs the Mac OS X operating system.
Level of Disruption
Affected footholds
At the low end, the prices motivate a buyer. In the case of Apple, low prices are not focused.
The company focuses on charging higher prices. As the customers believe that higher prices
belong to the higher quality. Add on premium prices creates a well-established image. On the
other side, the company makes more use of the price skimming strategy for attracting the low
end market. The customers like to buy more reduced prices products. It also helps the
company to grab maximum profit in the short term. It also results in increased sales. It
includes good things in the small packages.
On the other side, Apple makes use of the premium pricing in the new markets. As per this
strategy, company charges higher prices than the products of the competitors. It helps Apple
to build a premium brand image in the new markets. It results in generating higher revenues.
The high-end image of Apple is also robust in the mind of consumers (Clarke and Boersma,
2017). It also provides the premium user experience by the innovative features and design
considerations. It also employs retrospective and proactive approach as a segment of the
product strategy.
Affected stakeholders
The stakeholders considerably distress the organization in terms of customer insight and sales
proceeds. The company considers concern of the stakeholders given below:
Customers: The customers have an interest in the innovative products which are reasonably
priced as well. The products of Apple have advanced price facts. The premium pricing