ENT70018 - Apple Watch Case Study: Innovation and Leadership Analysis

This report analyzes the Apple Watch case study, focusing on the firm's marketing processes and the lack of entrepreneurial and innovation leadership. The study examines the failure of the Apple Watch in the market, attributing it to issues such as limited product range and inadequate understanding of consumer desires. The analysis highlights the importance of communication strategies and value propositions in enhancing product sales. The report provides recommendations, including the need to understand consumer preferences and improve communication, to overcome future market resistance. It concludes that the firm's marketing processes and leadership contributions were insufficient, leading to the product's underperformance. The report also provides references and visual aids such as figures of the Apple Watch.

The entrepreneurial
intention, New Venture

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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

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The key decision criteria that had arisen by the management of Apple Inc., after the failure of
their Apple Watch product in the market was that in future they should draft a more meaningful
communication strategy and supporting value proposition (Sañudo et al., 2019, p. 195). Hence it
will improve their consumer willingness and reduce their information symmetry, which provides
positive implications on selling the products.
Alternative analysis
The rejection, opposition, and postponement are caused due to the lack of appropriate processes
used by the Apple firm to market their watch product (Tison et al., 2018, p. 409). Thus it is
analyzed that the behavior of customer resistance generally depends on the innovation attributes
and thus it is prudent for the firm to develop a proper strategy before innovating a new product
(Bai et al., 2018, p. 1734). The analysis also shows that propagation and motivation mechanism
should be useful for this firm to increase the sells rate of their Apple Watch product. The analysis
makes clear that proper strategies should be useful for this firm to reduce their challenges in
attracting people to purchase their new product of Apple Watch.
Actions and implementation plan
The action and implementation plan of this Apple Inc., firm are that they should focus on the
demands of various customer segments and then launched and developed new products in the
market. Value identification is important for reducing the problem and enhancing the
profitability rate of the business (O’Neill, 2017, p.1651).
Conclusion and Recommendations
The paper concludes that 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.
This help them to reduce their issues for the business and influence them to make appropriate
strategy which is suitable for the firm.
For reducing the failure of both entrepreneurial and innovation leadership contribution of Apple
Inc., firm in the future, some recommendations are provided, which are as follows:
It is recommended that the firm should understand the value of their consumer desires because
most of the people do not change their established norms and tradition. By understanding their
choices, the firm should reduce its functional barriers and enable them to sell the products in the
market.
Another recommendation is that the management of Apple Inc. should improve their
communication strategies so that they can reduce their challenges and resistance to developing a
new product in the market.

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Exhibits
Figure 1: Apple Watch launched by the Apple Inc., firm
(Source: Cheung, Krahn and Andrade, 2018, p. 1083)
Figure 2: Different series of Apple Watch
(Source: Jung, Kim and Choi, 2016, p. 899)

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References
Bai, Y., Hibbing, P., Mantis, C., and Welk, G.J., 2018. Comparative evaluation of heart rate-
based monitors: Apple Watch vs. Fitbit Charge HR. Journal of sports sciences, 36(15), pp.1734-
1741.
Cheung, C.C., Krahn, A.D., and Andrade, J.G., 2018. The emerging role of wearable
technologies in the detection of an arrhythmia. Canadian Journal of Cardiology, 34(8), pp.1083-
1087.
Hernando, D., Roca, S., Sancho, J., Alesanco, Á. and Bailón, R., 2018. Validation of the apple
watches for heart rate variability measurements during relaxing and mental stress in healthy
subjects. Sensors, 18(8), p.2619.
Huynh, T.P., Sonar, P., and Haick, H., 2017. Advanced materials for use in soft self‐healing
devices. Advanced Materials, 29(19), p.1604973.
Jung, Y., Kim, S., and Choi, B., 2016. Consumer valuation of the wearables: The case of
smartwatches. Computers in Human Behavior, 63, pp.899-905.
Kahn, K.B., 2018. Understanding innovation. Business Horizons, 61(3), pp.453-460.
O’Neill, C., 2017. Haptic media and the cultural techniques of touch: The sphygmograph,
photoplethysmography, and the Apple Watch. New Media & Society, 19(10), pp.1615-1631.
Sañudo, B., De Hoyo, M., Muñoz-López, A., Perry, J., and Abt, G., 2019. Pilot Study Assessing
the Influence of Skin Type on the Heart Rate Measurements Obtained by Photoplethysmography
with the Apple Watch. Journal of medical systems, 43(7), p.195.
Tison, G.H., Sanchez, J.M., Ballinger, B., Singh, A., Olgin, J.E., Pletcher, M.J., Vittinghoff, E.,
Lee, E.S., Fan, S.M., Gladstone, R.A. and Mikell, C., 2018. Passive detection of atrial fibrillation
using a commercially available smartwatch. JAMA cardiology, 3(5), pp.409-416.
Wilmott, C., Fraser, E., and Lammes, S., 2018. ‘I am he. I am him. Siri rules': Work and play
with the Apple Watch. European Journal of Cultural Studies, 21(1), pp.78-95.