Key Findings of Apple Innovation Audit

This report provides key findings of Apple's innovation audit, including the company's existing innovation performance and capabilities. It also explores the industry trends in 2019 and evaluates the threat of new entrants and the bargaining power of suppliers and buyers. Read more on Desklib.

Key findings of Apple
innovation audit
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EXECUTIVE SUMMARY
In order to ensure competitive advancement and continuous growth it is essential for an
entity to take advantage of innovation on continuous basis as to offer attractive products and
services to customers. With the help of this company can attract a large base of audience while
ensuring high shareholding in marketplace. In this it is essential for entity to engage in the
process of research in order to find out current prevailing trend and needs of customers. Thus,
with the help of this entity by innovating their products and services according to customer
perception can enhance their profitability base. It has been analysed that Apple Inc operate
functioning at hardware and software industry offer wide range of competitive products in
marketplace and offer their services worldwide and attract customers with their highly attractive
products. Company allow their Research and Development Department to undertake free
decision related to designing without considering financial resources in anyway.
Present report includes aspect of evolution of innovation that has been undertaken by
present entity as to duly attract consumers. Along with this as to understand innovation
effectiveness organisation by taking advantage of four P’s of innovation and can make
significant effectiveness in their operations. In this and it take advantage of EST analysis which
is a part of pestle. This will allow entity to significantly identify factors that are prevailing in
environment. It further helps company to make formative strategy as to ensure high effectiveness
of operations. Along with this by taking advantage of Porter five forces model organisation can
gain competitive advantage and can take advantage of this to ensure high profitability and
growth. In present respective industrial sector by taking advantage of different theories and
models Apple can make significant increase in their customer place.
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INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
The organisation and its innovation.............................................................................................4
The organisations existing innovation Performance and capabilities..........................................6
The industry in 2019....................................................................................................................9
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................12
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INTRODUCTION
Innovation is most important aspect of any organisation despite of their size and scope as it
allows them to ensure long term sustainability and continuous growth. It is termed as a process
of creation of an idea into products and services as to duly attract consumers (Dončić, Perić and
Prodanović, 2015). Present report has been conducted on Apple. Company headquartered in
California, United States and offer wide range of products like Home Pod, App Store, iPod, App
Store, iPhone and more. Entity operates their services worldwide and was established in the year
1976. In these report formative discussions has been made on innovation history of Apple, its
existing innovation performance and capabilities. Along with this report include current situation
of Apple in respective industrial sector.
MAIN BODY
The organisation and its innovation
Apple Inc operates their functioning as multinational technology company headquartered
in California, United States. Company was established by Steve Jobs, Ronald Wayne and Steve
Wozniak in 1976. Different type of product and services has been provided by entity like Apple
News +, iPhone, Logic Pro, Final Cut Pro, Home Pod, App Store, iWork and more to their
customers. Entity continuously engaged in the process of adopting innovation in order to retain
profitable shares in marketplace. Apple innovation can be effectively understood with the
adoption of 4 P’s of innovation.
Product:
Apple Inc offer wide range of innovative and unique products and services to customers.
With the effective use of innovation entity attract large base of customers towards unique
features of their products and services (Teece, 2012). Mentioned below there are some certain
innovative product range of respective entity is being defined:
iPhone:
Apple turns out to be the first organisation to introduce Smartphone with multiple
touches i.e. Apple iPhone. It is a mixture of a Smartphone and iPod. Further entity introduced
many versions of the respective phone and continuously brings out the product with unique and
innovation feature. Apple launch latest iPhone Xs and iPhone marketplace.
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iPod:
This is a unique innovative product as it is having portable digital music player.
Company offer numerous version of iPod to their customers like iPod Touch, iPod Nano etc.
Process:
Product development process that has been adopted by Apple is unique and innovative
that lead entity to be a successful organisation in respective industry. This has been evaluated
that designing team in Apple are allowed to freely take decision and are not further responsible
to provide report to manufacturing, finance and other department. In addition to this, Apple has
provided restriction free environment to their research department with the help of which
organisation comes up with attractive and innovative products. Apple also engage in the
formation of conducting review meeting on regular basis as to effectively examine every product
which has company developed and design.
Position:
Apple have adopted innovative and unique strategies in order to position their product
and services effectively in marketplace. It has been analysed that respective organisation
positioning strategies is comparatively different from other entities dealing in same sector. It
helps Apple to attract wide range of customers towards its product. Entity position itself as
lifestyle brand engage in the process of manufacturing unique and innovative services and
products (Apple’s ‘Creative’ Brand Position, 2019). In addition to this entity position themselves
as a luxury brand and have a huge loyal and emotional support from their customers.
Paradigm:
It is termed as a particular innovation category that has been undertaken by entity as to
conduct their organisational activities in an effective manner. It helps them to attract consumers
while ensuring long term sustainability. In context with EST analysis they have adopted
paradigm into their procedure in order to develop and sell services and products in a well defined
way. Apple iPad is attractive innovative and unique product that surge up sale of this product by
1 million in 28 days.
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The organisations existing innovation Performance and capabilities
As to make significant enhancement in existing capabilities and performance Apple by
undertaking different methods and theories can effectively surge up their profit ratios. Respective
organisation takes advantage of EST analysis in order to evaluate performance (Wonglimpiyarat,
2012). Along with this model is being adopted by company as to analyse capabilities that entity
adopt as to implement innovation in a well defined manner.
EST Analysis:
ETA analysis is termed as impact of technological, economical and social factors upon
organisational activities and functions in negative and positive way. It becomes essential for an
entity to take use of effective strategies to evaluate innovation effectiveness in their working.
Economical Factor:
Accordance with this factor it has been analysed that with the increase in labour cost in
China product of Apple face decline (DU and ZHANG, 2012). Along with this because of
strong US dollar there is a significant increase in exchange rate that leads towards maximizing
overall budget of Apple in to conduct business in some nations like China and Europe. However
because of Hi-Tech technology and innovation Apple Inc can make significant increase in their
business effectiveness at certain geographical locations worldwide.
Social Factor:
It has been analysed that products and services that are being developed by present
organisation at international market gained attention of lot of individuals. In addition to this it
has been analysed that if an individual use attractive products and services it shows as status
symbol. In order to gain more profitable advantages company develop innovative products and
services as to attract attention of more customers. It also allows entity to identify different
opportunities. Purchasing power of individual has increased easy affordability of expensive and
innovative products.
Technological Factor:
As to ensure long-term sustainability it is essential for an organisation to take advantage
of Hi-Tech technology. It allows them to attract customers while ensuring their loyalty towards
organisation. In context with Apple Inc, by adopting new technology continuously aid entity to
satisfy their customers in best effective manner. Certain products of company like Apple TV,
Apple store, iPod and iPhone can significantly ensure loyalty from customers.
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SWOT Analysis:
Strength Weakness
 Apple Inc is having strong brand image
worldwide.
 Innovative products and Services
Company is having extreme loyalty
from customers.
 Apple Inc offer best after purchase
services to its customers that further
allow them to retain their customer
space for long period of time (Swot
Analysis Of Apple. 2019).
 Company make high investments in
research and development as to satisfy
customers in a best effective manner.
 Major weakness of entertain is that they
offer expensive products and services
which is not affordable to most of the
consumers.
 Company is highly depend on their
iPad and iPhone product lines which
act as a major weakness.
Opportunities Threat
 Apple Inc can gain significant
developing opportunities by expanding
more of their business in Asian
countries like China and India.
 Company by launching new high tech
products and services with low cost
range can ensure maximum share
holding in international market place
(Patti, Yanes and Siuzdak, 2012).
 By making expansion of Apple retail
Stores Company can gain opportunities
 Due to premium pricing Apple can face
threat as its limits their growth in
emerging market places.
 Company is facing threat from its
competitors like Samsung, Soni, Dell
MI as they offer high quality products
at low price.
 Due to their expensive price range of
products and Services Company face
significant decrease in its sale in India.
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to attract customers in a more effective
manner.
With the help of this analysis Apple Inc. can effectively identify and understand their
strength and weaknesses that further aid them to make significant modification in their activities.
It helps them to attract attention of large base of customers while assuring high profitable
advantages.
Capabilities of Apple Inc.:-
Structure: Apple Inc. has adopted hierarchical organisations structure at workplace. In
this entity divide their department and delegate roles to individual according to their experience
and skills in order to maximize effectiveness of works (Apple Inc.’s Organizational Structure &
Its Characteristics (An Analysis), 2019).
Culture: Apple Inc has adopted healthy and positive culture at their workplace structure.
In this they treat all of their workers in an equal manner. Entity takes suggestion from their
employees. In addition to this by understanding need of their staff, company develop effective
procedure and policies for their betterment.
Leadership: Apple Inc is taking advantage of democratic leadership style. In this leaders
involve employees and team members in the process of decision making (Apple Leadership: a
brief overview, 2019). It encourages employee’s motivation with the help of which they perform
their activities with 100% hard work.
Financial: Apple Inc. current financial capabilities in the year 2016 states that entity
expand the business approx $2.8 billion and now entity is maximizing their budget by $10 billion
million. In current year, entity currently generated revenue that by between $55 billion and $59
billion. In addition to this current expenses or income of company is$300 million.
Human: Apple Inc. is having more than 137000 employees in its workplace structure
those who perform their functioning as a full time employee (Apple Now, 2019). Workplace
structure of company is fully equipped with experienced, skilled and potential individual who aid
entity to accomplish organisational goals in a well define manner.
With the help of these competencies Apple Inc. lead towards attaining organisational goals
as well as objective in a best effective manner. It also aid employees to feel motivated while
performing their work.
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The industry in 2019
As to effectively determine current situation and status in which Apple Inc operate their
functioning. Entity project manager by taking use of different models and theories can ensure
effective accomplishment of their goals. In context with this, with the use of Porter five forces
model entity can effectively able to evaluate its attractiveness and competitive advancement.
With the help of this model company can effectively able to understand respective industrial
segment in which they operate their functioning. In relation with this project manager of
company conduct evaluation of Smartphone industry in order to analyse different aspects:
The threat of new entrants:
Software and Hardware industry is emerging as one of the profitable and leading
industrial sector. Apart from this there are number of factors that pose threat to entrance of new
entities, such as there is a huge investment of capital are required to be made which is hard for
most of the industry (Porters 5 forces for mobile industry. 2019). It has been analysed that Apple
Inc operate their functions with having high customer loyalty towards its product and services.
Thus, as to ensure long-term sustainability organisation is required to continuously adopt
innovative and unique technology as to attract their customers.
Bargaining power of suppliers:
It has been analysed that bargaining power of suppliers is moderate in present industrial
sector. In this mainly two suppliers prevailing in respective industry that is manufacture of
Software and Hardware developer (Gobble, 2012). Further, there are different types of sources
who engage in the process of developing software for organisation. This indicates that bargaining
power of suppliers is relative low in present industrial sector. Apart from this, there is a presence
of certain software developer who provides high tech technological services to companies that
makes bargaining power of the suppliers low. Thus, by analysing both of these aspects company
is required to formulate coordinator relationship with suppliers as to ensure maximum
advancements.
Bargaining Power of Buyers:
There is different type of organisation offer identical products in same industrial sectors.
In addition to this organisation offer innovative services at low price range that makes bargaining
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power of buyers high in this industry. Thus, it is essential for present respective organisation to
provide high quality product at affordable price range as to ensure long-term sustainability.
Rivalry companies:
This has been evaluated that in Smartphone industrial sector there is a presence of high
competitors those offer same products and services at affordable prices base. This impact
functioning of respective company. In context with hardware and software industry there are
different types of organisation like Nokia, Samsung, and Blackberry who offer their services to
individual. Thus, as to ensure maximum customer base respective company is required to offer
unique today customers.
Threat of Substitute Products:
In context with Software and Hardware industry in which Apple is operate their function
this has been evaluated that threat of substitute product is relatively moderate. Due to the
presence of many entities offer Smartphone with same feature in affordable price range. Thus, by
taking advantage of new and updated technology respective industry can gain significant
advancement.
CONCLUSION
As per the above mentioned report, it has been concluded that innovation play significant
role in growth aspect of an organisation. Thus, as to ensure long term sustainability it is essential
for organisation to offer innovative and unique products and services to customers. In addition to
this with this, by taking assistance of SWOT and porter’s five force analysis organisation can
evaluate their strength and weaknesses and can take further advantage of strategies to gain
significant opportunities.
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REFRENCES
Books and journals
Dončić, D., Perić, N. and Prodanović, R., 2015. Holistic marketing in the function of
competitiveness of the apple producers in Bosnia and Herzegovina. Economics of
Agriculture/Ekonomika Poljoprivrede. 62(2)..
DU, S. B. and ZHANG, J. K., 2012. SWOT Analysis and Proposals on Development of Organic
Apple in Yan'an Mountain Area. Northern Horticulture. 7. p.070.
Gobble, M. M., 2012. Innovation and strategy. Research-Technology Management. 55(3). pp.63-
67.
Khan, U. A., Alam, M. N. and Alam, S., 2015. A critical analysis of internal and external
environment of Apple Inc. International Journal of Economics, Commerce and
Management. 3(6). pp.955-961.
Patti, G. J., Yanes, O. and Siuzdak, G., 2012. Innovation: Metabolomics: the apogee of the omics
trilogy. Nature reviews Molecular cell biology. 13(4). p.263.
Teece, D. J., 2012. Dynamic capabilities: Routines versus entrepreneurial action. Journal of
management studies. 49(8). pp.1395-1401.
Union, I., 2014. Communication from the Commission to the European Parliament, the Council,
the European Economic and Social Committee and the Committee of the Regions.
Brussels.
Wonglimpiyarat, J., 2012. Technology strategies and standard competition—Comparative
innovation cases of Apple and Microsoft. The Journal of High Technology Management
Research. 23(2). pp.90-102.
Online
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