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Innovation and New Technology Assignment

   

Added on  2021-04-17

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Running head: Innovation and New Technology Innovation And NewTechnology

Innovation and New Technology 1Apple Inc. is an American multinational technology company which designs and sells consumerelectronics, computer software and online services. It is headquartered in Cupertino, California.The hardware products manufactured by the company include iPhone smartphones, iPad tabletcomputers etc. It is the world’s largest information technology company and was founded bySteve Jobs, Steve Wozniak and Ronald Wayne in April, 1976 (Rawlinson, 2017). Black Berry Limited is a Canadian company which designs and markets smartphones tablets andservices. Founded in 1984, it was considered as one of the most dominant smart phone suppliersin the world till it lost its dominant position due to its success of Android and iOS systems(Blackberry , 2017).In this literature search, opinions stated in various journal articles regarding the reasons whyincumbents i.e. Blackberry are beaten by the challengers i.e. Apple Inc. in the business wouldbe stated. According to Nish and Silcoff (2015) in 2007, Apple Inc. transformed the competition landscapeby creating a transition in the scenario of smartphones from something which was functional to aproduct which was beautiful. More than 1 million iPhones were sold in the first three months inthe summer of 2007. When the first iPhone was released, Black Berry decided to beat the competition bymanufacturing a touchscreen “iPhone killer”, which turned to be a complete flop. Blackberrywas great in creating phones and dominated the market before Apple Inc launched its firstiPhone. It was successful in creating a permanent shift of the customers who used other phonestowards it. BlackBerry dominated the market by creating devices for e-mails and phone calls but with thelaunching of App store by Apple Inc., it changed the definition of smartphone entirely. It is thetop leader with the market share of 45 % while Black Berry has now fallen to 32 % of themarket.With the introduction of iPhone, Black Berry has lost its charm in the cell phone market. Tomake it worst, its management has been in denial ever since. It’s shrinking sales, lowered brand

Innovation and New Technology 2power and incompetency has sent it downward with the expulsion of co- CEOs Mike Lazaridisand Jim Basille. According to the opinion of Arthur (2013) Black Berry had the chances to survive and grow butit took the wrong direction. It did not adapt itself to the changing demands of the customers.Apple’s strategy was to shift its business focus from just designing iPods to mobile phones tostore music, surf the net and make calls too. As for the case of Black Berry, the problem was notthat it had lack of ideas, rather it made the wrong choices and failed to adapt itself with thechanging market conditions. As per the opinion of Winter (2014) when Steve Jobs introduced iPhone in 2007, it was a smalland pocket able computer of its time. It was not only for calculating and processing data like abusiness phone but also had the features of running apps along with making calls and playingmusic. Apple Inc’s strategy was to outperform by creating “desktop –class architecture” in itsphones. Black Berry was not able to cope up with the competition since it only excelled at makingphones having the features of making phone calls and processing data. iPhones not only allowedthe users to make calls but also allowed them to play games, videos and handle those tasks whichrequired a laptop earlier. Black Berry failed to grasp this and continued to manufacture the same phones which it wasmanufacturing earlier. Black Berry lacked in its features and it was slow in updating itsOperating System. Unless Black Berry overhauled its phones, it did not find any decent buyers inthe market. The reason behind its failure was to comprehend the true nature of the device calledsmart phones (Sag and Waller, 2015). According to Divya and Kumar (2016) Black Berry was slow in reacting to market changes.Earlier, people were comfortable using Qwerty keyboards which were easier to handle e-mailsand instant messages. Eventually, with the emergence of Apple iPhone, they became comfortablewith touch screen devices and their large screens which helped them to surf the net and the appsin a better way.

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