CASE: “The Success of the iPod and iPhone raises the licensing question for Apple…. Again”
1. Use the Cyclic Innovation Model figure to illustrate the innovation process in this case and provide a brief description? Apple started in 1977 when it’s first personal computer was designed by Steven Jobs and Steven Wozniak. The thing that was different about the Apple Macintosh personal computer was that it used a mouse driven operating system, which was not being used by other computers at the time. Microsoft were using a Microsoft Disc Operating System, which they licensed to all other PC manufacturers, Apple refused to do this which limited it to only people who bought Apple computers, this led to Apple’s shares falling significantly. Although Apple had an arguably better operating system they were losing in the market, because Microsoft licensed other manufacturers to use their operating system it became the common household system. This stubbornness although at the time seen to be foolish at the time, has helped with their success today (Trott, P 2012). Apple’s technological research over time (and the return of Steven Jobs) led to the creation of the iPod. In 2001 the iPod was launched, from 2003 the sales of the iPod heavily increased, generating massive profits for Apple, and giving the brand more exposure. To help Apple deal with the market competitors they kept improving and modifying the iPod, whilst still being able to lower its price. They did this by making modified versions such as the iPod Shuffle, and upgrading other models. Apple has continued to upgrade and invent new products to keep its customers and attract new ones. This has been done through the iMac, iPod, iPad and iPhone, adding new technological features, such as giving phones other multipurpose uses such as an iPod substitute as well as the invention of the ‘apps store’. Their technological developments to make these products do all sorts of amazing new things has given them...
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