Case Study of Apple Watch: Failure of Entrepreneurial and Innovation Leadership Approach

The entrepreneurial
intention, New Venture

1
Introduction
The paper will discuss about the case study of Apple Watch, and along with this it will also
analyzed the firm several marketing processes such as convincing the people regarding the
benefits of their products and also convincing them the usefulness of the products. However,
their marketing processes failed due to the lack of entrepreneurial and innovation leadership
contribution approach. Another analysis will be provided that define the importance of
communication strategy and the value proposition as it could help the firm to enhance their
watch selling rate. Furthermore some recommendations, as well as action and implementation
plan, will be provided that can help Apple firm to overcome their resistance in the future.
Main context
Problem Statement
Apple Inc. uses appropriate brand extension strategy to be one of the most innovative companies
in the nation, but they had limited options about products range (Huynh, Sonar and Haick, 2017,
p. 1604973). Hence it is considered as the main cause of their failure in innovation and
entrepreneurial leadership approach in the market.
Data analysis
From the case study, it is seen that Apple Inc., launched Apple Watch in April 2015 but at the
end of 2016 it is seen that the Apple Watch was recorded 55% of the lower sales rate. The Apple
formerly made smartwatches, which had gain 59% of the total market in 2016, but the Apple
Watch does not make their position in the market (Wilmott, Fraser and Lammes, 2018, p. 78). It
is analyzed that the watch was designed with iOS devices along with primary timekeeping
function, but the customers were not satisfied by this watch. The marketing process used by this
firm for this product was to convince the people that the watch is for the fitness tracker
especially to the people such as surfers, swimmers and other people who participate in different
underwater sports (Huynh, Sonar and Haick, 2017, p. 1604973). Another marketing process for
convening the people was to compare the Apple Watch with that traditional watch in terms of its
ability.
In other words, by developing powerful fitness and health options in the watch, they also grab
the attention of their consumers. The marketing process is quite attractive, but lack of innovation
and entrepreneurial leadership contribution causes failure for the firm to market this product
(Hernando et al., 2018, p. 2619). The firm failed in anticipating the market needs as their
monolithic model does not attract the people (Kahn, 2018, p. 453). It is caused due to the failure
of both entrepreneurial and innovation leadership contribution as the management unable to
understand the desires of consumers from their products range. According to several industry
experts as discussed in this case study, the customers do not have any need of this type of
smartwatches and due to this reason they did not work except the Apple Watch properly (Sañudo
et al., 2019, p. 195). Hence this rejection factor also accesses the failure of innovation and
entrepreneurial leadership approach of this Apple Inc., firm.
Key decision criteria