This report discusses the innovative strategies adopted by Apple in the field of technological innovation. It explores their current innovation strategies, innovation strategy for competitive advantage, development and entry strategy, collaboration of different parties, and deployment strategy.
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Running head: TECHNOLOGICAL INNOVATION AT APPLE Technological Innovation at Apple Name of the student: Name of the university: Author Note:
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1TECHNOLOGICAL INNOVATION AT APPLE Table of Contents Introduction................................................................................................................................2 Current innovation strategies of Apple......................................................................................2 Innovation Strategy for the organization’s Competitive Advantage..........................................4 Development and Entry Strategy...............................................................................................4 Collaboration of the different parties regarding the innovation strategies.................................7 Deployment Strategy of Apple...................................................................................................8 Conclusion................................................................................................................................10 References................................................................................................................................11
2TECHNOLOGICAL INNOVATION AT APPLE Introduction Apple is said to be one of the largest innovative organization in the technological fields of the overall global technology market. The technological innovative strategies adapted by the organization had taken it to this great level (Dolata, 2017). This report will deal with the innovative and effective strategies adapted by Apple that enhanced the organization to grow at a great level. The steps taken by Apple for its development is also briefed in the report. Current innovation strategies of Apple In the present times, the organization is known as the “Innovation Factory”. This is due to the cause that the organization has thrived to be the global leader4 in the field of uncontrolled product creativity. The specialist as well as the technology innovation team of employees at the organization has always tended to bring innovations at the products as provided by the organization (Pisano, 2015). The recent trends in the user interface as well as the hardware advancement had helped the organization to be at the top over all the other organizations present in the global markets. The technological innovation in the smart phone products has always grabbed the consumers. Moreover, the innovative strategies regarding the business model of Apple has also put a positive effect in the sector of the innovations at the organization. The company mainly focuses on the customer needs and then design the next strategy to meet up the customer satisfaction. The marketing strategy is also an important sector in the growth of this organization. The most important characteristic regarding the marketing strategy that is adapted by eth organization is said to be as empathy (Yun, Won & Park, 2016). This is simply defined as the capability by which the organization understands the individual customer’s needs. This strategy helped the organization to connect with the customers at a much deeper level. This is
3TECHNOLOGICAL INNOVATION AT APPLE turn provided the organization to understand the desires of the consumers thus facilitating the consumers with the great benefits. Apple always tends to provide their consumers with an advanced product that will be rally helpful to them to use in the daily life so that the customer does not even thinks of any other device as a substitute. They always thrive their product to be much easy to use, transparent usage as well eases the interaction for the customers to avail this facility at a much smooth manner. The brilliant mind-set of Steve Jobs has lead this organization to strategically as well as effectively grow in such a manner in a big level. He focused mainly on the development of the consumer values that enhanced to make significant contribution to the technological industry (Biemans, 2018). The premium products launched by the organization has thrived the organization to gain a great level of exposure among the customers. The organization very well dealt with the strategic and effective needs of the customers. This marketing strategy thrived the organization to develop at such a great level. The focus of the organization was meeting up the customer’s needs. Hence, the company did not went to compete with the other present global companies in accordance to price. The presentation of the products were the most important sector where the company focused rather to just launch products and make more money (Hanson et al., 2016). This made the marketing strategy of Apple differ from the other present technological companies that are dealing with the smart devices. The marketing team of the organization still thrives to gain the customer needs for the products they are manufacturing and designs their product accordingly. The simple theory that the organization adapts is that they firstly educates their customers about the needs they are trying to gain from the product. In the second place they uses their ease of access methods with the product and then produces the convenience of the product they are manufacturing
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4TECHNOLOGICAL INNOVATION AT APPLE (Ross, Beath & Sebastian, 2017). This satisfies the customer and hence the organization becomes the highest used smart products. The strategy that the organization adapted while designing and manufacturing IPad was that the product can entertain the customers by facilitating them for playing games efficiently, read books, listening to music as well as browse the internet from wherever they want (Frow et al., 2015). Thus, it can be said the customer experience has gained a lot of focus in the innovative strategies of Apple. Innovation Strategy for the organization’s Competitive Advantage The innovation strategies as adapted by the organization has helped them in many sectors for gaining the competitive advantage with respect to the other competitors in the technological fields such as Microsoft. Apple never focused on making money via their products whereas the company thrived to gain the customer’s satisfaction as well as meet the customer needs, which in turn became very advantageous for the organization’s growth (Nylén & Holmström, 2015). Moreover, the company always kept their focus away from the critics of the other organization and continue the process of delivering the enhanced level of products to their consumers irrespective of their strategies adapted by the other competitors in the market. The critical analysis of the organization’s development as well as entry to the market strategy are briefly explained in the next section of the report. Development and Entry Strategy There are many strategies adapted by the organization to achieve the position that the organization possess in the technological market at recent times. The seven most effective strategies adapted by Apple is stated as follows. Critic Ignorance: There were many critics in the market that adheres them to be the one who may decide about the technological innovation, which should be adapted by the
5TECHNOLOGICAL INNOVATION AT APPLE organizations. However, the organization, Apple changed the overview and concentrated on the development of the products irrespective of the costs that re required for the development. Many critics suggested that the manufacture of the iPad by the organization could be big failure (Hagspiel, Huisman & Nunes, 2015). Nevertheless, from the recent market analysis it is depicted that the iPad is one of most successful product that has been manufactured by the organization in recent times. Thus, Apple chose the innovation over the critic’s overview and are now said to be on of the successful iPad brand in eth global market. Transformation from ordinary to excellent: For a certain period, the fans associated with a PC had contented in the market for the innovation. While the other organizations in the business were busy with the implementation of eth standard hardware specifications Apple kept their focus straight (Hitt, Ireland & Hoskisson, 2016). This organization chose to change the entire design of the standard hardware regarding the products. This is turn resulted in the development of the enhanced as well as effective products such as MacBook Air, iMac and many more. While the other competitors in the market were focusing on a single aspect of the innovation, Apple focused on the overall aspects through which the organization could emphasize their growth in the technological market. Justification of Price: The pricing strategies are adapted by many of the organizations that are implementing innovation within their products. The organizations are in a sort of dilemma to set the right price for the products they are innovating. To handle the cost of the launched products easily it is necessary to implement the strategic pricing of the market. However, Apple does not follows these strategies as of the present competitors in the market (Kahn, 2018). This organisation confidently sets the high price of the products they are developing. This id due to the reason that the organization is well aware of the fact that the customers will be paying for the product that facilitate effective customer satisfaction to their reliable customers. Moreover, there is no comparison to the features as well as the innovative
6TECHNOLOGICAL INNOVATION AT APPLE features that are provide by the organisation in their launched or developing products. This is turn justifies the charge of the prices regarding the products as offered by the organization (Babkin, Lipatnikov & Muraveva, 2015). Apple is quite aware of the fact that there is no such product available in the market that is carrying more features as well as the products are maintaining the top quality design among the other present companies that are dealing with the same product. Representing the Audience’s Language: The organization believes that the technological jargons that are used regarding the product specifications does not look scary as well as are not interesting to the customers who are willing to purchase the product. The technological terms such as the processing speed, the megahertz of the processor or the sustainable power of the battery is not necessary for the customers to know and judge the product accordingly (Teece, Peteraf & Leih, 2016). However, the product specifications of any product at an Apple product page is describe with the interesting features that the customers are facilitated with. This includes the terms such as LED backlight, the retina display as well as the edge-to-edge glass and many more. This terminology looks to the customer very interesting thus increasing the customer’s interest towards the innovative products. Experience Extension: The organization has made sure that the product experience of the consumers is not ceased while they pay a huge amount of money behind the product. The designing team of Apple continues to put extra focus as well as effort for gaining the enhance and effective user experience from the overall structure of unboxing till its browsing This is mainly enhanced by the enhanced features of installation as well as excellent packaging of the product (Demirkan, Spohrer & Welser, 2016). The organization puts an extra effort behind the packaging of the product, to make sure that the customers are facilitated with the same experience when they unbox a particular product as well as from the packing of the box
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7TECHNOLOGICAL INNOVATION AT APPLE itself. This is turn affected the organization in a positive point of aspect for maintain their customer satisfaction and customer retention. Tribe Development: There has been a developed customer base for the products associated with the organization. This customer base are in the focus due to the jealous behaviour of the other competitors in the market (Khan, Alam & Alam, 2015). However, in turn the organization caters to embrace the needs of the elite users thus providing them the most successful products in modern times. “The Name” development: Most of the customers go shopping for the technological products as a generalised form that is customer goes to a shop and asks for a smartphone or music player. However, in case of the Apple the scenario is opposite. If any customers want to buy an Apple Smartphone, they ask for iPhone directly, whereas for a music player they ask for iPod directly (Bereznoi, 2015). This is due to the reason of the trust or the satisfaction level that the organization is providing to its consumers. This in turn makes the products of Apple at a premier stage in the overall technological market. The unique features, the effective technological innovation thrive the organization to maintain its name among the other products in the market. Collaboration of the different parties regarding the innovation strategies The innovation strategies could not have gained so much effective success without the collaboration of below stated two departments that actually holds the credit for the advancement of the organization. The Product development team: It can be easily observed that the strategies adapted by the product development team of the organization has put an important as well as positive impact in gaining the customer’s trust and attention towards the product manufactured by the organization. The most impacted strategies include the innovation of the MacBook with the
8TECHNOLOGICAL INNOVATION AT APPLE new and advanced processors (Hacklin, Björkdahl & Wallin, 2018). A large number of changes in the iPod, iPhone has also influenced the users to lean on the usage of the products. Maintaining the continuous update to the already launched products to enhance the customer’s usage is an important innovation that has been adapted by Apple regarding the innovation strategies of the product development as well as the maintenance team associated with the organization. The pricing strategy team: The comparison study regarding the shopping of the products is a well-adapted methodology among the consumers. The best discount is always focused by the consumers in order to buy a product. Keeping these factors in mind the pricing team of the organization has set the prices for the customers (Kanagal, 2015). Apart from this, it can easily be depicted that the costing of the Apple products is a bit high in respect to the other products available in the market. Thus the development team ensures that the pricing of the product are standardized in accordance to the products that the customers are paying for. Deployment Strategy of Apple The deployment of a product at the organization of Apple mainly focuses on the four steps that is environment preparation, developing of the devices, deploying the products as well as managing the products after being deployed. These strategies are briefly explained below. Environment preparation: This strategy is adapted by the organization while carrying out the development of any product. The evaluation of the infrastructure is the most important part in this step. The evaluation of a product’s network performances are critically assessed in this segment. The VPN infrastructure is focused effectively to make the product an enhanced one. The support of the internal software requirements of an organization is said
9TECHNOLOGICAL INNOVATION AT APPLE to be the most import factors that this strategy focuses to gain the customers attention as well as trust on the product that the organization is trying to launch (Kane et al., 2015). The overall performance, stability as well as the implied features are focused on a great level before the development procedure in order to assure the customer experience regarding the product. Developing of the devices: The development of the products as well as the configuration of the products is focused effectively by a specific as well as a particular team. The configuration of the devices with the MDM server is an effective feature adapted by the organization. The management of the devices are enabled by the usage of specific configuration profiles that holds the information of an iOS device. The additional capability implementation of the other features in the development helps the organization to reach in a much-enhanced manner to the consumers. Deployment of the products: The deployment of the devices is made easier by the interface of the iOS. This helps the employees to initiate the usage of the devices right after the development stage. The distribution of the products is made easier regarding the customers with the help of the setup assistant as well as the customized features also enhances the usability of the products among the consumers (Arora et al., 2016). The iCloud feature is an important deployment strategy provided by approximately every product of the company to enhance the user experience of the consumers. Management of the products: The organization provides a great and enhanced level of support to the consumers even after they had purchased the product. This makes the organization an extremely caring company regarding the consumer, which further enhances the customers to gain a trust towards the company.
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10TECHNOLOGICAL INNOVATION AT APPLE Conclusion Thus, the above report clearly depicts the innovation strategies as implemented by the organization Apple. This in turn facilitates the consumers in various effective ways. The above report also deals with the deployment strategies that are adapted by the organization to cope with the customer satisfactions. The competitive advantage of the organization in respect to the other companies prevailing in the market is well stated in this report. Thus the possible innovative strategies that makes the products of the organization to be attractive in respect to the other present products in the market are depicted in the report and it can be well determined that the organization will thrive to implement more strategies to meet up the demands of the consumers.
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13TECHNOLOGICAL INNOVATION AT APPLE Yun, J., Won, D., & Park, K. (2016). Dynamics from open innovation to evolutionary change.Journal of Open Innovation: Technology, Market, and Complexity,2(2), 7.