Critical Success Factors in Apple's New Product Development Report

This report provides a comprehensive analysis of Apple Inc.'s new product development (NPD) process. It begins with an introduction to Apple and the NPD process, followed by a detailed examination of product-related factors such as pricing, quality, innovativeness, and technological advancements, illustrated with examples from Apple's products. The report then explores market-related factors, including target market concentration, market competitiveness, timing of market introduction, and marketing activities. A critical success factors section and discussion of strengths and weaknesses is provided. The report concludes with actionable recommendations for improving Apple's NPD practices, supported by the earlier analysis and relevant NPD literature, addressing areas where Apple could enhance its product development strategies. The report leverages the provided table of contents and adheres to the provided structure, offering a detailed overview of Apple's approach to NPD.

Running head: NEW PRODUCT DEVELOPMENT PROCESS
NEW PRODUCT DEVELOPMENT PROCESS
Name of the Student
Name of the University
Author Note

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Table of Contents
1. Introduction................................................................................................................2
2. New Product Development........................................................................................2
3. Factors that affect new product development framework..........................................3
........................................................................................................................................3
4. Product related factors................................................................................................4
4.1 Pricing of the products.........................................................................................4
4.1.1 Pricing of product of Apple...........................................................................4
4.2 Quality of the products.........................................................................................5
4.2.1 Quality of the products offered by Apple.....................................................5
4.3 Innovativeness of the products.............................................................................5
4.3.1 Innovativeness of the products of Apple.......................................................6
4.4 Technological advancement.................................................................................6
4.4.1 Technological advancement of products of Apple........................................6
5. Market related factors................................................................................................7
5.1 Concentration of target market.............................................................................7
5.1.1 Target market concentration of Apple..........................................................7
5.2 Levels of market competitiveness........................................................................7
5.2.1 Market competitiveness of Apple.................................................................8
5.3 Timing of market introduction.............................................................................8
5.3.1 Timing of market introduction of products of Apple....................................8
5.4 Marketing activities..............................................................................................9
5.4.1 Marketing activities of Apple........................................................................9
6. Critical success factors and issues related to the company......................................10
6.1 Strengths.............................................................................................................10
6.2 Weaknesses........................................................................................................10
7. Recommendations....................................................................................................10
8. Conclusion................................................................................................................11
9. References................................................................................................................12

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1. Introduction
Apple Inc. is multinational technology based company of American origin. The
headquarter of the organization is located in Cupertino, California. The company mainly
operates in the designing, developing and selling of different types of products including,
iPad tablet, iOS operating systems, iOS App Store, iLife and iWork productivity and
creativity based suites and many more (Apple.com. 2019). The hardware and software based
products that are offered by the organization are capable of fulfilling different types of
demands and needs of the consumers all over the world. Apple had been established by Steve
Jobs, Ronald Wayne and Steve Wozniak in the year 1976. The firm has been successful in the
development of a major place in the industry with the help that is offered by the various
unique and high end products of Apple (Apple.com. 2019).
2. New Product Development
As discussed by Ayağ (2016), the process of new product development is built on the
ways by which a particular service or product is taken from the conception to the market for
sales purposes. The process can be completed in an active way with the help of certain steps
or stages that the new products have to go through. The stages that need to be followed by the
company in order to grow new products mainly start from the process of generation of the
idea to the proper implementation of the idea (Bai, Feng, Yue & Feng, 2017).
According to Chuang, Morgan and Robson (2015), the innovative ideas need to be
implemented in organizations in order to start the process of new product development in an
effective manner. The different steps that can be considered to be a major part of the new
product development process are, idea generation, idea evaluation, concept definition,
strategic analysis, product testing and development, market testing, commercialisation and
launch of the product. The organization that aims at developing new products needs to follow

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the various steps in an effective manner in order to use the resources of the company
efficiently (Cooper, 2019).
The design of the products is considered to be the highly important aspect of the new
product development method. The effective transformation of a market opportunity is able to
play a key part in the methods by which organizations are able to maintain their operations in
the industry. The satisfaction stages of customers of an organization are also based on the
ways by which different demands and needs can be fulfilled with the help of new products
(Cui & Wu, 2016). The quality, time and cost based factors have the highest ability to drive
the needs of the consumers. The process of development of the new products are thereby
supported in a huge manner by the analysis of the needs and demands of the consumers (Cui
& Wu, 2017).
3. Factors that affect new product development framework
Market related factors
 Target market
 Timing of market
introduction
 Competition
 Marketing
Product related factors
 Relative price
 Relative quality
 Innovativeness
 Technological
advancement
Technological
factors
Successful product
development
Commercial viability

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4. Product related factors
4.1 Pricing of the products
As discussed by Du, Yalcinkaya and Bstieler (2016), the pricing of new products is
able to play a key part in the methods by which an organization aims to deliver them to the
customers within short periods of time. The costs based on development of the products is
considered to be a major factor that needs to be taken into consideration in deciding the
prices. The pricing strategy is able to play a key part in the methods by which the company is
able to attract more number of customers. The demands that the new product is capable of
generating in the market can be considered to be a major factor that needs to be analysed
while deciding the prices (Echeveste, Rozenfeld & Fettermann, 2017).
4.1.1 Pricing of product of Apple
The premium pricing based strategy has been used by Apple during the decision
based on prices that had been taken for the new iPhone XS and XS Max Series. The high end
products that are offered by Apple have a completely different customer who are more
concerned about the quality of the products rather than the prices that are being charged. The
company has always used this pricing approach in order to introduce the new products in the
industry every year (Eisend, Evanschitzky & Gilliland, 2016). The promise that is delivered
by Apple with the help of its products is built on the methods by which the company aims at
making the life of people more comfortable and providing better methods of communication
as well. The sales and pricing based strategy that has been implemented by Apple in the
development of new products is related to the ways by which the appropriate products that
can be offered to the premium and loyal customers (Elgammal, Papazoglou, Krämer &
Constantinescu, 2017).

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4.2 Quality of the products
Quality management is considered to be a significant aspect that is able to influence
the ways by which the companies are able to grow new products. The new processes and
products need to ensure that the requirements and demands of the customers can be met in an
effective manner. The expectations of the customers are able to play the most significant part
in the methods by which the products are developed by the company (Ernst, Hoyer, Krafft &
Soll, 2017).
4.2.1 Quality of the products offered by Apple
Apple has been able to gain a major reputation in the smartphone industry based on
the quality of products that are provided to the customers. The quality of products is able to
provide support to Apple in order to develop an effective competitive advantage. The
premium pricing strategy that has been implemented by Apple is considered to be a major
aspect that is able to influence the quality levels of the products and services that are offered
by Apple. The company has gone far ahead of the levels of competition that exist in the
industry with the help of high quality based products. The hardware based units that are
offered by Apple are considered to be major factors that are related to the quality of products.
The new series of products that are offered by Apple are also based on the high quality levels
(Gao & Bernard, 2018).
4.3 Innovativeness of the products
The levels of product innovation are considered to be highly significant for the
methods by which different products and services are developed by the organizations. The
invention of new products is influenced in a huge way by the ways by which innovative
capabilities can be implemented. The process based on the growth of new products and
changes that are to be made in the existing products that based on the implementation of
innovative processes (Gumusluoglu & Acur, 2016). The innovativeness in the products can

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thereby be divided into two major categories that include, radical innovation that is based on
the development of new products and incremental innovation that aims at the improvement of
the existing products as well (Hu, McNamara & Piaskowska, 2017).
4.3.1 Innovativeness of the products of Apple
The innovations that have been implemented in different products are considered to
be significant factors that are able to affect the digital lifestyle of people in diverse parts of
the world. Apple has been able to gain a highly valuable place in the highly competitive
smartphone industry (La Rocca, Moscatelli, Perna & Snehota, 2016). The revolution that has
taken place in development of smartphones and personal computers was based on the
innovative products that are offered to the customers. The levels of innovativeness in the
products that have been recently developed and offered by Apple are built on the methods by
which the firm has gained a competitive advantage in the smartphone industry (Lee, Kim &
Joshi, 2017).
4.4 Technological advancement
The growth of new products that are offered to the customers are based on the
increase in levels of competition and proper advancement of technologies as well. The
technological advancements of the new products are based on the different factors related to
the fulfilment of needs of the consumers. The innovative levels of the products can be
increased with the help of appropriate application of technologies in the new products offered
by the company (Lee, John, Fong & Bao, 2018).
4.4.1 Technological advancement of products of Apple
The application of contemporary technologies has been a significant part of the
success that is gained by Apple in the smartphone industry. The modern technologies that
have been implemented by the organization in the new products introduced in the year 2018

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have fulfilled different types of requirements and demands of the customers. The
organization has developed a unique place in the smartphone industry with the support that
has been offered by the innovative and high end products of Apple (Leenders & Dolfsma,
2016).
5. Market related factors
5.1 Concentration of target market
The new product development strategy that has been implemented by the
organizations is affected in a enormous way by the target market and their needs as well. The
strategic approach that has been implemented by the organization is based on the ways by
which the needs of target market and preferences can be taken into consideration
(Mauerhoefer, Strese & Brettel, 2017). The organizations need to analyse the target market in
a detailed manner in order to develop the strategies based on development of the new
products. The demands and needs of the customers are able to influence the right products
that are developed by the organization (Luzzini, Amann, Caniato, Essig & Ronchi, 2015).
5.1.1 Target market concentration of Apple
The target market of Apple is based on different groups that include, teenagers,
college or university based students, business people and kids. The products that are offered
by Apple as a part of different sectors are able to satisfy the requirements and demands of the
consumers. The new products that are offered to the customers like iPhones that have been
developed in the year 2018 by the organization. The target market of iPhone in this case
include, college and university students and the teenagers mainly (Morgan, Anokhin, Song &
Chistyakova, 2019).

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5.2 Levels of market competitiveness
The levels of competitiveness in the market are able to affect the process of effective
product development. The development of new products is based on the ways by which target
market of the organization is satisfied and their needs can be fulfilled as well. The frequency
of new product development is also based on the market competitiveness levels that are
developed in the company in an effective manner (Najafi-Tavani, Najafi-Tavani, Naudé,
Oghazi & Zeynaloo, 2018). The organizations thereby try to develop the products in such a
manner that is able to affect the competitiveness levels in the industry. The frequency of
introduction of the new products are based on the intensity of the levels of competitiveness in
the market (Rubera, Chandrasekaran & Ordanini, 2016).
5.2.1 Market competitiveness of Apple
The industry in which Apple has its operations is influenced in a huge way by the
development of new products in the smartphone industry. The company thereby needs to
continue with the development of new and improved products in order to enhance the stages
of revenues in the highly competitive industry. The levels of market competitiveness are able
to affect the methods by which Apple is able to decide the prices of the products. The
positioning of the products in the smartphone industry is also built on the competition that is
faced by Apple in the industry (Sattayaraksa & Boon-itt, 2016).
5.3 Timing of market introduction
Market timing of the entry of new products is able to play a key part in the success
that can be gained in the new product development method. The decisions that are made by
the organizations are based on the prediction of the future market price based movements.
The levels of market prediction and the outlook of the market is able to play a key part in the
development of new and improved products (Schützer, Rodrigues, Bertazzi, Durão & Zancul,
2017).

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5.3.1 Timing of market introduction of products of Apple
The introduction of new products in the smartphone industry is able to play a key part
in the methods by which the needs and demands of consumers of Apple can be fulfilled. The
products that are offered by Apple are introduced in the market every year. The development
of the products is considered to be a significant aspect that is able to influence the processes
of Apple in the highly competitive smartphone industry (Zahay, Hajli & Sihi, 2018). The
timing based on the introduction of new products is influenced in a huge way by the levels of
customer needs and condition of the market as well (Apple.com. 2019).
5.4 Marketing activities
The marketing activities and strategies of organizations have to be developed and
implemented in the early stages of new product development process. The organizations are
able to diversify the customer base in an active way with the help of appropriate distribution
process and marketing based strategies that are implemented (Schützer, Rodrigues, Bertazzi,
Durão & Zancul, 2017). The new segments of the market are able to play a key part in the
methods by which awareness based on the products can be increased in an effective way. The
marketing activities performed by organizations can also be considered to be personalized in
nature based on the methods by which the target markets can perceive the products (Zahay,
Hajli & Sihi, 2018).
5.4.1 Marketing activities of Apple
The secret product development method of Apple is based on major steps that are able
to support the organization in order to develop and introduce the products in the smartphone
industry in order to address the needs of the consumers. The design process is considered to
be the first step of new product development method, the development of a product team is
the next step, the new product process of Apple is developed in the third step, after successful

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development of products the design is formed by the organization (Najafi-Tavani, Najafi-
Tavani, Naudé, Oghazi & Zeynaloo, 2018).
6. Critical success factors and issues related to the company
6.1 Strengths
The strong image of the brand developed by Apple is considered to be a significant
aspect that is able to affect the process of new product development. The levels of secrecy
that are maintained by the organization are able to influence the methods by which the
company has developed high levels of curiosity about the new products. The profit margins
that have been gained by the company are also a significant part of the operations that are
developed by Apple in an effective manner (Morgan, Anokhin, Song & Chistyakova, 2019).
The innovation process of organization is a significant aspect that is able to influence the
growth of new and improved products. The process of new product development is based on
the methods by which Apple is able to provide the products to the customers.
6.2 Weaknesses
The limited network of distribution that has been developed by Apple is a major
weakness based on the methods by which levels of awareness based on the new products can
be increased. The selling based prices of the organization is considered to be an important
aspect that is able to influence the methods by which customers can be attracted towards the
newly developed products of Apple. The customer base of the organization is quite limited
and has an impact on the proper development of revenues in the highly competitive
smartphone industry (La Rocca, Moscatelli, Perna & Snehota, 2016).
7. Recommendations
The major recommendations that are provided to Apple based on improvement of new
product development method are as follows,

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 The development of a large and extensive distribution network in order to
meet the requirements and demands of the customers. This will help the
organization to reach huge number of consumers within shorter periods of
time.
 The company can aim at targeting the products and services towards a larger
group of customers in order to enhance the revenue levels and profitability as
well.
8. Conclusion
The report can thereby be settled with the statement that the development of new
products has been an important factor based on the achievement that has been gained by
Apple in the smartphone industry. The strategies and approaches that have been implemented
by the organization are considered to be highly effective for Apple in order to uphold its
processes in the smartphone industry. The product based and market based factors have been
able to influence the methods by which the organization has developed an effective consumer
base in the smartphone industry. The growth and introduction of new products is a significant
factor based on the methods by which a company like Apple can maintain its operations.

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