Apple Case Study Report

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Table of Contents
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Assessment 1 - Case Study Report1
Question 1:1
Question 2:3
Question 3:4
List of References5

Assessment 1 - Case Study Report|

Case: “The success of the iPod and iPhone raises the licensing question for Apple… Again”(Source: Chap 1, Page 33)

Question 1:
Use the cyclic Innovation Model (Fig1.9, pg. 30) figure to illustrate the innovation process in this case and provide a brief description.

Innovation is not only invented via technical invention, it also consists of economics, social and cultural aspect as well. Many years ago, innovation was only simple one-way pipelines, but now it’s using a new conceptual approach to innovation, which defined as using a managed cross-disciplinary (feed forward and feedback connections) network along the innovation circle as per Figure 1 (Berkhout, Hartmann & Trott 2010). In the case study, Apple used the Cyclic Innovation Model (CIM) for product and market orientated transitions in order to get to where they are today.

Figure 1 – Cyclic Innovation Model (CIM)

Innovation can start anywhere in the CIM (Berkhout, Hartmann & Trott 2010). For example in the case of Apple, Apple invented iTunes in January 2001 where people used this software to store music and films. Apple saw an opportunity that market required a portable player for music, so Apple used this opportunity and researched into the market and created the iPod where people can access audio files via internet and storage. ITunes was an invaluable link between the product and service, which identified what the consumer wanted (Berkhout, Hartmann & Trott 2010). ITunes services allowed Apple to see what the market required and created new innovation. The creation of new product (iPod) stimulated a market transition which in turn encouraged more innovation.

Berkout, Hartmann & Trott (2010) stated that previous innovation can inspire new innovation. From the Apple case,The Ipod was introduced via iTunes in order for Apple to monitor and gather information from its market. Because of the information gathered, they then decided to combine the iPod technology into phones which resulted in the creation of the first iPhone. Berkout, Hartmann & Trott (2010) also states by having an expert in the area of social behavioural science to access the shift in societal emotions and needs, and the trade condition and regulation, new social-technical solution can be developed faster and have less economic risk. This can be confirmed by McCray, Gonzalez & Darling (2011) which stated that since the introduction of iPhone, apple has captured the high end of the smart phone market. All this shows that Apple have effectively used the CIM model to create a new market share in the industry.

The message here is that without innovation, there are no new businesses (Berkout, Hartmann & Trott (2010). Apple got its reputation and brand name after many successful products using the CIM model to innovate.

Question 2:
With sales of iPod falling and Apple facing fierce competition from all quarters such as Sony, Dell, Samsung and other electronics firms as well as mobile phone makers who are incorporating MP3 players into their devices, can the iPod survive?

IPods have made Apple blossom, but due to the increase in mobile phones that are equipped with music players, the iPod market dropped dramatically (Strategic Direction 2008). For iPods, there are many different roads that Apple can consider taking to still be competitive with other electronic firms. To create a new market for apple this essay will only talk about two factors: change of price and product innovation.

If Apple wants to survive in this high competitive market or increase its market share, the fastest and easiest way is to lower the price of their products. Danes & Mullinkin’s (2012) research shows that for a product to be successful,...
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