Innovation Analysis of Apple Technology

This assignment provides a detailed analysis of innovation strategies, including incremental and disruptive innovation. It also includes a SWOT analysis of Apple and a discussion of the Porter's Five Forces model. Additionally, it explores various technological advancements in the smartphone industry and presents several innovative ideas for mobile devices.

INNOVATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

Illustration Index
Illustration 1: SWOT analysis..........................................................................................................4
Illustration 2: 5 forces analysis........................................................................................................5

INTRODUCTION
The present essay is based on importance of creativity and innovations in various
organisations. It can be said that a company can gain immense growth and hype by attracting
new talent that are able to arrive new and innovative ideas for entities. This plays a crucial role
for any firm. Actually, it is needed the most in this world which tends to change constantly.
Further, the essay will mainly cover incremental and radical types of innovations. Present
chapter also covers difficulties that are faced by companies (Broeders and Khanna, 2015). The
auto mobile firm Apple is taken into consideration for this context.
MAIN BODY
Meaning of Innovation
Innovation is basically a process to implement creative ideas practically. It is used in
companies to add values. In other words, doing something new for organisations and from
generating different ideas to implement them is known as innovation. This may include
revolutionary changes to various entities. By this, it means doing new things novelly. Its
objective is to bring optimistic change to formulate things well again. There are four major
stages of the term innovation that are generating idea, development, adoption plus diffuse and
end.
It usually revolves around creativity but both are not identical to each other. There is a
basic difference in both terms. In today's world, where new technologies such as faster soft
wares and hard wares have been increased production in the business of thousands of
organisations. Now, the Indian and Chinese markets are being more capitalistic and inviting
various corporations to arrive and do their business. There may be numerous elements while
dealing innovations and doing modifications to an entity. First element is about the capacity of
any company to be changed. Next one is alteration in technologies that an organisation can
adapt. By adopting technological changes, companies lead to next step which is to come up with
new products. It helps firms to great extent whether it is a large entity like Apple or small
companies.
Innovation process
As per the view of (Christensen, Raynor and McDonald, 2015) to bring changes in firms,
it needs to make a solid structure and strategy in relation to come up with new products and
services. There are several factors that are essential for successful modifications. First one is
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idea; meaning of it is if an organisation is thinking to change, then it should have a new thought.
Here, creativity and out of the box thinking plays a crucial role. It may be possible that
innovative ideas can come from places that are least considered. Thus, innovator should be broad
in thinking. The refreshing thoughts can come from various group collaborations and individuals
of firms. Second factor in this way is need. Owners and senior managers are required to
determine if there is a need to change something (Kim and Jun, 2015). There should be a solid
reason to do specific change because it takes constant alterations in strategies, structures or may
be in culture. This thing can also prove to be bad for companies if overly used. The modification
is not needed to be in excess as it can be doomed in future. Hence, there must be awareness
among senior team members to rectify whether the change is actually required or not.
Third is adoption. Once the procedure to identify the new idea and need of change occur,
then the time is to adopt those thoughts. Organisations should adopt these ideas and work
accordingly. Now, it is time to reach on 4th factor that is implementation. After conducting
researches regarding modifications that have to be done, the next stage comes where all changes
are to be implemented using strategic approaches and systems.
Last factor is using available resources. In this context, human resources are most
important that contribute to successful alteration. In order to reach on final factor, firms need to
have employees who are capable enough to understand what is going to change and why. It will
happen if they are trained and skilled.
Difference between incremental and radical innovation
As stated by (Kim, Kim and Foss, 2016) there are two basic approaches to bring change
in it. One is incremental and the other is radical or it can be called disruptive. Both are different
from one another. Apple, which is one of the finest mobile brand is made by approaching both
type of innovations at different times. Now, it has reached on top position in market as it offers
high quality mobile phones, laptops, i- pads etc. this company is known for making world class
mobile phones. The incremental and radical approaches are basically strategies that an
organisation may use to bring new ideas and work accordingly to apply it.
According to the statement of (Ben Gross, 2016)In incremental approach, it motivates
them further to buy that particular product again and again. Third advantage that incremental
method gives is affordability. It becomes easy-going for entities to sell its products and goods in
nominal prices when it has enough capital to bring new changes in brands and its variants. This
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way, customers get modified goods and products and become more satisfied. Smart phones are
the great examples of this approach of innovation (Lusch and Nambisan, 2015). The time Apple
had launched its first I phone, it created huge market. After that many other entities have started
to introduce new phones in this range and gained profit. In this race various new companies were
added. Once they have started this process, it just needs resources to keep turning the wheel.
This made organisations relevant to buyers and also it reduced uncertainty and improved cost
control. That kept going on until other took over them in market.
Apart from all of these, the incremental approach has few disadvantages too. The major
shortcoming of this approach is it is difficult to get noticed in markets that are huge and have so
many competitors. It also includes large investments and resources for marketing. The biggest
example of standing out in this race is Apple. It is a huge player in terms of offering best I phone
worldwide.
As per the view of (Pisano, 2015)in case of radical approach, it is not that easy to create
such blue ocean. It requires lot of capital and a pioneer innovator that can think differently and
bring new ideas for the firm consistently. Additionally, it needs correct timing to introduce a
new market of different products. This method also requires huge investments and there is no
guarantee of return on it. So, it can be said that applying this technique can be quite risky and
complex especially for small start-ups. As it has already been discussed about Apple that has
become the biggest brand over a short span of time.
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Illustration 1: SWOT analysis
Source: (Apple SWOT Analysis, 2016)
Swot analysis of Apple: It describes about internal strengths as well as weaknesses of Apple
which is as follows:
Strengths: Its biggest strength is extensive channels of distribution. It uses multiple channels to
advertise its products.
Weaknesses: dependency on the sales of its I phone is the major weakness of this company.
Opportunities:Introduction of various wearable gadgets (Apple SWOT Analysis 2016, 2016). For
instance, launching of Apple watch.
Threats: The intense market competition to provide something new with every new launch.
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Illustration 2: 5 forces analysis
Source: (Ovidijus Jurevicius, 2013)
5 forces analysis of Apple
This is reclaimable, because, when interpret the forces in surround or business enterprise
that can affect profitableness, you'll be able to set your scheme agreement. For example, you
could take fair plus of a strong place or better a weak one, and confront taking incorrect steps in
the forthcoming. On the other hand, assistance to analyse the property and imperfection of
place, and how they can contact long-term net income.
Competitive rivalry: Apple faces force of intense competition in mobile market as other
smartphone companies also offering equal features in much less prices (Ovidijus Jurevicius,
2013).
Bargaining power: Customers power of bargain is affecting its business negatively. On the other
hand, cost to the purchaser of switch from one supplier to some other. If a business organization
has just a few powerful bargain, they are often capable to rule terms.
Suppliers power of bargaining: This force is weak in which Apple experiences less power of its
suppliers.
Substitution: This is also a weak force as compared to others as its substitution is most difficult
for rivals.
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New entrants threat: It is experiencing moderate level force of threat of new entrants. It
plication the likelihood of custom-made switch to alternate in response to price plication. This
reduces both the powerfulness of suppliers and the attraction of the securities' industry.
As stated by (Torous and Roberts, 2017) Apple made easy to access smart phones. However, the
prices of them are quite high but it offers the finest quality phones that are now become a desire
for every person to purchase and use them.
Importance of incremental approach:
According to the statement of (Globerman and Lybecker, 2014) both techniques have
their own pros and cons. Companies can apply any of them to bring innovation in its firm. But in
particular, the former approach is more prominent than latter. It is because this method can be
implemented by every type of entity whether it is a large organisation like Apple or small like
Spice. Most of the companies do not have huge resources and money to invest. The incremental
innovation technique generally focuses in continuous changes in existing products and services.
Furthermore, it is also based on improving new features and it does not need much cost to bring
modifications to implement different strategies. In other words, it is measured that by this
approach, a company can walk on safe side as well as get improved step by step. This is the
biggest advantage to apply incremental technique. Even small firms can use it and get benefits.
Companies implement this method of innovation in general. In addition, there are fewer chances
to fail by using this method as it is the safest over other method. For instance, Apple's tablets can
be put into this category. When it first launched them, it had very few features but over the time,
it added various new things over a period. Hence, now it has become most people's choice to use
apple tablets. It can be seen that by applying this technique many organisations had got success
in a certain period. So the entities need to have patient to gain profits.
As stated by (Yin, Davis and Muzyrya, 2014) on the other hand, the disruptive method is
totally different from the former one. It needs lot of investment and resources to make
alterations. This method is quite risky too because, there is no guarantee to get desired results.
However, if it works then a small start-up can also be immensely popular in a night and can
establish a huge market. But there is a need to have a pioneer innovator in terms to apply
changes. Moreover, if a company comes with a completely new idea then only it can work and
give robust success in business. When an organisation apply this method in a field where already
have other established companies, then there are very fewer chances to be successful. Apple is a
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biggest example of this innovation method. It had sufficient resources, man force and correct
market strategy to launch world class phones, tablets etc. Further, it introduces additional
features every year with one new series. Now, its mobile phones have tremendous market value
and several other features like sensors that are not still available in other mobiles. Also, the
camera quality of Apple's I phone is very high.
So, it can be said that this type of innovation can give all or nothing to companies.
Disruptive method is very risky in comparison of incremental technique.
Incremental approach Radical/disruptive approach source
Incremental approaching is
become very common
nowadays. Various companies,
even Apple uses this technique
of innovation. In this
approach, there are various
goals that firms usually follow
for its implementation.
This approach is called radical
or disruptive. It is far more
complicated to be applied.
This method includes risky
and complex procedures
contrary to former.
Jessica Day, 2016.
These goals are: to increase
profits and sales, to getting
secured business models and
last one is to generate new
business without savage
current one. This approach
minimises the risks generated
by radical or disruptive
method.
This process is comparatively
more risky and lengthy. It can
be described as “blue ocean
strategy”. This means that the
companies need not to find a
position in market rather it
generates new market as Apple
has already done.
Incremental and Disruptive
Innovation, 2006.
Most of the companies find it
easy to apply this method if
Apart from being so
complicated, it has several
Kim and Jun, 2017
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they have sufficient resources
of humans and capital.
Furthermore, this method has
many advantages.
advantages too. The main
benefit of using this technique
is having a huge win in terms
of profits and market shares
till any new competitor
arrives.
First, it helps firms like Apple
to be in competition and being
over every other company for
long term. Second benefit of
this approach is ideas, that
have become easy to sell
because it is makes easy for
consumers to buy products that
are easy to access.
It can be termed as a
significant advantage for large
entities. In contrary to other
companies, Apple applied this
approach of innovation and
now, it has become at the top
of all other small mobile
organisations.
Ben Gross, 2016
Types of Innovation Description Sector Sources
Paper tab Mobiles would be as thin as
paper could be bend like that
only powered by Intel
processors.
Mobile 11 Mobile Innovations
That We Need More
Than Flexible Phones,
2017
Contextual
intelligence
With the use of sensor
smartphones could be able to
make decisions on behalf of
user.
Mobile 11 Mobile Innovations
That We Need More
Than Flexible Phones,
2017
Depth sensing cameras 3D scanning with smartphone Mobile 11 Mobile Innovations
That We Need More
Than Flexible Phones,
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2017
Augmented reality Using cameras and sensor of
smartphone all useful
information about the thing
which smartphone is been
placed over.
Mobile 11 Mobile Innovations
That We Need More
Than Flexible Phones,
2017
Greater security Will be using the iris of
human eye to unlock the
smartphone.
Mobile 7 tech innovations
coming to your next
smartphone, 2018
Faster connection The development of 5G
which would be very fast
connection
Mobile 7 tech innovations
coming to your next
smartphone, 2018
CONCLUSION
It can be concluded from the above essay that innovation is very important for the firms
to compete and be in market for long time. Otherwise, there are various other entities that are
waiting to take their position by new and innovative ideas. It is just some resources and finance
that they need to be successful (Yun, Won and Park, 2016). The companies which are whether
old or new, all are trying to get market shares and want to generate more revenues to get
maximum profits. It depends on them how innovative their approach to bring changes in
products and services because customers of today have so many choices to buy from. It is up to
companies that the products they are offering to people are different and something new from
others. For this, firms can implement above discussed innovation techniques depending upon
their current status in market.
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REFERENCES
Books and Journals:
Broeders, H. and Khanna, S., 2015. Strategic choices for banks in the digital age. McKinsey &
Company.
Christensen, C.M., Raynor, M.E. and McDonald, R., 2015. What is disruptive
innovation. Harvard Business Review. 93(12). pp.44-53.
Kim, B., Kim, E. and Foss, N.J., 2016. Balancing absorptive capacity and inbound open
innovation for sustained innovative performance: An attention-based view. European
Management Journal. 34(1). pp.80-90.
Kim, J.M. and Jun, S., 2015. Graphical causal inference and copula regression model for apple
keywords by text mining. Advanced Engineering Informatics. 29(4). pp.918-929.
Kim, J.M. and Jun, S., 2017. Integer-valued GARCH processes for Apple technology
analysis. Industrial Management & Data Systems. 117(10). pp.2381-2399.
Lusch, R.F. and Nambisan, S., 2015. Service innovation: A service-dominant logic
perspective. MIS quarterly. 39(1).
Pisano, G.P., 2015. You need an innovation strategy. Harvard Business Review. 93(6). pp.44-54.
Torous, J. and Roberts, L.W., 2017. Needed innovation in digital health and smartphone
applications for mental health: transparency and trust. Jama psychiatry. 74(5). pp.437-438.
Yin, P.L., Davis, J.P. and Muzyrya, Y., 2014. Entrepreneurial innovation: Killer apps in the
iPhone ecosystem. American Economic Review. 104(5). pp.255-59.
Yun, J.J., Won, D. and Park, K., 2016. Dynamics from open innovation to evolutionary
change. Journal of Open Innovation: Technology, Market, and Complexity. 2(1). p.7.
Online:
Ben Gross, 2016. The Corporate Dilemma: Incremental vs. Disruptive Innovation. [Online].
Available through: <https://www.qmarkets.net/blog/the-corporate-dilemma-incremental-
vs-disruptive-innovation/>.
Globerman and Lybecker, 2014. The Benefits of Incremental Innovation. [Online]. Available
through: <https://www.fraserinstitute.org/sites/default/files/benefits-of-incremental-
innovation.pdf>.
Apple SWOT Analysis 2016. [Online]. Available through
<https://www.cheshnotes.com/2016/06/apple-swot-2016/>
Ovidijus Jurevicius, 2013. Porter's Five Forces. [Online]. Available through
<https://www.strategicmanagementinsight.com/tools/porters-five-forces.html>
Jessica Day, 2016. What is the difference between an incremental change and disruption.
[Online]. Available through <https://ideascale.com/what-is-the-difference-between-an-
incremental-change-and-disruption/>
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Incremental and Disruptive Innovation, 2006. [Online]. Available through
<http://innovateonpurpose.blogspot.in/2008/03/incremental-and-disruptive-
innovation.html>
11 Mobile Innovations That We Need More Than Flexible Phones, 2017. [Online]. Available
through <https://www.hongkiat.com/blog/mobile-innovations-we-need/>
7 tech innovations coming to your next smartphone, 2018. [Online]. Available through
<https://mashable.com/2017/01/03/qualcomm-snapdragon-835-phone-innovations/
#XMmA4nciMOqJ>
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