Global Strategic Innovation: Apple's Strategy & Analysis

This report provides an analysis of Apple's global strategic innovation, examining the internal processes and external factors that underpin its success. It delves into Apple's new product development models, organizational culture, research and development efforts, and strategic alliances. The report evaluates how these elements contribute to Apple's competitive advantage in the technology industry. It highlights the importance of innovation and creativity in Apple's NPD process and its ability to create superior products that meet customer demands. The analysis also covers Apple's investment in R&D and its collaborations with other technology enterprises. Finally, the report offers recommendations for further improving Apple's NPD process through artificial intelligence and virtual reality.

Running head: GLOBAL STRATEGIC INNOVATION
GLOBAL STRATEGIC INNOVATION: ANALYSIS OF APPLE AND ITS
INNOVATION STRATEGY
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
1.0 Introduction.....................................................................................................................2
2.0 External Environment.....................................................................................................2
3.0 Internal Processes.................................................................................................................3
3.1 Models for New Product and Service Development........................................................3
3.2 Culture, Structure, Rewards, Methods and Processes of Production...............................4
3.3 Research and Development..............................................................................................5
3.4 Alliances and Cooperation...............................................................................................6
4.0 Evaluation and Recommendations..................................................................................7
5.0 Conclusion.......................................................................................................................8
6.0 References............................................................................................................................9

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1.0 Introduction
Apple Inc. is considered to be one of the most innovative business enterprises of the
world and this innovative approach of the enterprise not only becomes apparent in the
products or services offered by the concerned enterprise but also the business model as well
as processes which are being used by it [17]. Furthermore, it is seen that the effective usage
of diverse innovative technologies had not only enabled the concerned enterprise to offer
high quality products or services to the customers but also effectively embrace the process of
product standardisation as well [16]. This in turn had enabled the enterprise under discussion
here to attain competitive advantage within the business market of its operation and this in
turn had helped to maintain a uniform rate of growth and higher amount of profitability as
well [14]. Thus, it can be said that the entities of innovation and creativity are important ones
from the perspective of the enterprise Apple and had helped to attain competitive advantage
and also its strategic business goals.
2.0 External Environment
Jun and Sang [2] are of the viewpoint that the landscape of the technology industry is a
constantly changing one and the different business enterprises related to the concerned
industry are actively taking the help of the recent technological innovations for the
improvement of the quality as well as the features of the products or services offered by
them. For example, unlike the earlier times presently it is seen that within a span of less than
one month the products or services launched by one company becomes obsolete and fall off
customer demand because of the upgraded better-quality same products or services offered by
other enterprises [4]. In the case of Apple itself it is seen that its competitors Microsoft,
Samsung, HP and others are constantly upgrading as well as improving the quality of the
products or services offered by them and this in turn had made it imperative for the concerned

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enterprise to take the help of the recent innovations for the improvement of the products or
services offered by it [15]. More importantly, the frequent fluctuations in the demand of the
customers, the developments in the fields of innovation and technology, price factors, quality
factors and others are the major actors which had necessitated the usage of the innovations
and technological advancements by the enterprise under discussion for the improvement as
well as the upgradation of the products or services offered by it [1].
3.0 Internal Processes
3.1 Models for New Product and Service Development
Figure 1: New Product and Service Development Framework used by Apple
Source: (Created by the Author)
Li and Reimers [3] are of the viewpoint that one of the unique features of the New
Product Development (NPD) process followed by the enterprise Apple is the fact that there is
an effective conglomeration of the technology, management competencies, research and
development activities and strategies alliances within the process followed by the enterprise
Apple
Technology
Strategic
Alliances
Research and
Development
Management
Competency

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for the same. As discussed by Kahn [18], this is contradictory to the NPD process followed
by the other companies like Microsoft and others wherein it is seen that merely market
researches are being conducted and on the basis of the market trends as well as customer
demand the new products are being designed. However, within the spectrum of the enterprise
Apple it is seen that the new products or services like “iPhone SE 2”, “StudioPods”, “iPod
touch” and others are being designed after undertaking effective marketing researches so as
to understand the customer expectations or demand and also the recent technological trends
[13]. Furthermore, rather than randomly designing the new products or services it is seen that
the new product or service ideas are being analysed from the perspective of the management
competencies of the enterprise, its technological capabilities and also the fact whether the
enterprises with which it shares the strategic alliances would support the new product or
service idea or not [4]. It is only after the analysis of the new product or service idea on the
basis of these parameters that the final blueprint of the new product or service is being
formulated. This is important since it ensures the fact that the new products or services like
“iPhone SE 2”, “StudioPods”, “iPod touch” and others launched or for that matter designed
by the enterprise under discussion here would be supported by its different internal processes
but also to ensure the fact that they would be appreciated by the customers as well which in
turn is likely to enable the enterprise to attain competitive advantage in the business market
of its operation [2].
3.2 Culture, Structure, Rewards, Methods and Processes of Production
Tirabeni, Pisano and Soderquist [6] are of the viewpoint that the organisational or the
workplace which is predominant within the spectrum of a business enterprise greatly
determines the extent to which the concerned enterprise would take the help of the process of
innovation for the development of new products or services. As discussed by Rubera,
Chandrasekaran and Ordanini [9], this is important since the management competencies and

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the other factors which influence the NPD process used by the enterprises is greatly depend
on the kind of organisational or workplace culture that exists within the spectrum of the
enterprises. In the enterprise Apple, it is seen that a continuous learning environment exists
which greatly influences the individuals of the enterprise to take the help of the processes of
innovation and creativity for the effective completion of the work that they are required to
perform [17]. In this regard, it needs to be said that continuous learning environment which is
prevalent within the enterprise Apple greatly facilitates the usage of the recent innovations
and technological developments by the enterprise for the development of new products or
services like “iPhone SE 2”, “StudioPods”, “iPod touch” and others [15]. More importantly,
different kinds of rewards and recognitions are also being offered to the employees for the
using these entities for the completion of their job roles and it is seen that every quarter
rewards or perks are being offered to the employees who have came up with the most
innovative as well as creative product or service ideas [7]. In addition to these, it is seen that
rigorous methods or processes are being followed for the analysis of the innovative or
creative ideas generated by the individuals within the enterprise and it is only after a thorough
feasibility analysis of the same the ideas are being taken into for the production of new
products or ideas [16]. Furthermore, it is seen that after the process of feasibility analysis, the
management competencies, technological resources, whether the concerned ideas would be
accepted by the alliances of the enterprise or not and others factors are being taken into
account.
3.3 Research and Development
Chang and Taylor [8] have noted that the business enterprises before the designing of
any new product or service needs to conduct effective market researches so as to understand
the recent trends in the business markets of their operation and also the demands or the
expectations of the customers. Furthermore, as opined by Wu et al. [11], the business

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enterprises also needs to invest in different kinds of research and development activities so as
to come up with concepts or project ideas the usage of which is likely to offer an edge to the
new products or services development by them in the business markets of their operation and
thereby enable them to gain competitive advantage. In the enterprise Apple, it is seen that the
enterprise before the formulation of any new product or service like “iPhone SE 2”,
“StudioPods”, “iPod touch” and others undertakes effective market researches so as to create
the kind of product or service which would not only be appreciated by the customers but at
the same time to stay ahead of its competitors as well [16]. More importantly, in the year
2018 itself it was seen that the budget for the different projects undertaken by the R&D
department of the enterprise under discussion here was more than $760 million [7]. The large
amount of capital invested by the concerned enterprise for the different R&D is an indicative
of the desire on the part of the enterprise to not only improve the quality of the products or
services offered by it but at the same time to create or design the kind of products or services
which will enable it to stay ahead of its competitors [17]. This extensive focus on the
enterprise on the concept of product or service quality and innovation helped the enterprise to
sell more than 1.3 billion products in the year 2018 and thereby become the most valued as
well as loved brand of the world [7].
3.4 Alliances and Cooperation
Innovation is the core business strategy of the enterprise Apple and for the effective
attainment of this end the concerned enterprise in the present times had formulated
cooperation or strategic alliances with different technological enterprises or third parties [7].
These partnerships or the collaborations are important from the perspective of the enterprise
Apple because of the fact that they greatly facilitate the development of new products or
services and also the integration of the new technologies or the innovations with the same
[14]. This is important since it enables the concerned enterprise to effectively utilise the

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strategy of product standardisation and thereby manufacture the kind of products or services
which are superior to the ones offered by the competitors of the enterprise [12]. This in turn
had helped the enterprise to not only outrival its competitors but also to gain competitive
advantage within the business markets of its operation and also to earn a higher amount of
profitability as well.
4.0 Evaluation and Recommendations
The above-discussion in a succinct manner reveals the idea that the entity of innovation or
creativity forms an integral part of the NPD process followed by the enterprise Apple.
Furthermore, it is seen that the effective usage of the constructs innovation and creativity had
helped the enterprise under discussion here to create the kind of product or services like
“iPhone SE 2”, “StudioPods”, “iPod touch” and others which are not only superior in quality
to the ones offered by the rivals or the competitors of the concerned enterprise but at the same
time takes into account the demands or the expectations of the customers as well. More
importantly, the effective usage of the construct of innovation for the manufacture of new
products or services had helped the concerned enterprise to earn competitive advantage
within the business market of its operations and also given it the opportunity to enhance its
profitability in an exponential manner as well. Moreover, the effective usage of the processes
of market researches and R&D had helped the enterprise to create customer-centric products
or services which are complemented by the innovated attitude or the approach of the
enterprise. However, at the same time it needs to be said that the enterprise under discussion
here has the opportunity to improve its NPD process through the effective usage of the below
given measures-
 Apple for the improvement of the NPD process used by it had the opportunity to take
the help of the constructs of artificial intelligence and also virtual reality which in

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turn is likely to help it to create the kind of products or services that would be far
superior to the ones offered by its competitors.
 Apple for the purpose of the improvement of its NPD process can shift its focus from
the small scaled incremental improvements, which it is presently focusing on, to
large scale revolutionary developments.
5.0 Conclusion
To conclude, innovation and creativity should form the heart or the central value of the
new product development processes used by the business enterprises. This is not only likely
to help the business enterprises to create the kind of products or services which are far
superior to the ones offered by its rivals but at the same time would take into account the
requirements or the demands of the customers as well. This is important since it will enable
the enterprises to not only earn competitive advantage within the business markets of their
operation but also provide it the opportunity to enhance its profitability or the financial
returns earned by it as well. These aspects of the process of NPD becomes apparent from the
above analysis of the same in the context of the enterprise Apple.

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6.0 References
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perspective”. Tamara Journal of Critical Organization Inquiry15(3), 249-256. 2017.
[2] Jun, S., and Sang, S. P. “Examining technological innovation of Apple using patent
analysis”. Industrial Management & Data Systems, 113(6), 890-907. 2013.
[3] Li, M., and Reimers, K. “Innovation in information and communications technology
industry". Chinese Management Studies, 9(1), 27-37. 2015.
[4] Park, H. Y., Misra, K., Reddy, S., and Jaber, K. “Family firms’ innovation drivers and
performance: A dynamic capabilities approach. Journal of Family Business
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[5] Rhéaume, L., and Gardoni, M. “The challenges facing corporate universities in dealing
with open innovation”. Journal of Workplace Learning. 27(4), 315-328. 2015
[6] Tirabeni, L., Pisano, P., and Soderquist, K. E. “Transitioning towards employee-driven
innovation: Lessons from pioneers in the ICT sector”. Academic Conferences International
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[7] Apple.com. "Apple Home", Apple, 2019. [Online]. Available: https://www.apple.com/.
[Accessed: 10- Jun- 2019].
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new product development: A meta-analysis." Journal of Marketing 80.1: 47-64. 2016.
[9] Rubera, Gaia, Deepa Chandrasekaran, and Andrea Ordanini. "Open innovation, product
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[10] Cui, Anna S., and Fang Wu. "Utilizing customer knowledge in innovation: antecedents
and impact of customer involvement on new product performance." Journal of the academy
of marketing science 44.4: 516-538. 2016.
[11] Wu, Dazhong, et al. "Cloud-based design and manufacturing: A new paradigm in digital
manufacturing and design innovation." Computer-Aided Design 59: 1-14. 2015.
[12] Biemans, Wim. Managing innovation within networks. Routledge, 2018.
[13] Fang, Eric, Jongkuk Lee, and Zhi Yang. "The timing of codevelopment alliances in new
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[14] Homburg, Christian, Martin Schwemmle, and Christina Kuehnl. "New product design:
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[15] Sjoerdsma, Maarten, and Arjan J. van Weele. "Managing supplier relationships in a new
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[16] Gehani, Ray R. "Corporate brand value shifting from identity to innovation capability:
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Growth Through Strategic Innovation. Edward Elgar Publishing, 2018.
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