Management 497 Assignment Week 2

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  • Topic: Apple Inc., IPhone, Steve Jobs
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Audit Exercise Paper Two
Student Name
MGT/497 – Strategic Technology Planning for Organizations
Professor Name
January 16, 2012

This paper will refer to two audit exercises from Chapter three and Chapter four of the textbook. The first one will refer to demand for product, competitive response, level of novelty of the innovation, factor that could block the good outcome of an innovation, and other factors. The second audit exercise will involve the assimilation of a checklist for innovation with respect to the considered organization. It will also determine the readiness of the organization to implement an innovation strategy.

The company chosen for these audit exercises is Apple. Everyone has heard about this company and knows that the products of it are very important in our lives. According to Apple Inc. (2012), they mission statement says that they design Macs, the best personal computers in the world and they lead the digital music revolution with their iPods and iTunes online stores. The mission statement also says that the company has reinvented the mobile phone with their revolutionary iPhone and that they define the future of mobile media and computing devices with the iPad. The goal of this company is to make the best mobile product from their phone. Remember what Steve Jobs said when people asked him about the purpose of this company. He said that the company will try and offer with their mobile phone what the people need and not what they want. Audit Exercise Chapter 3

This audit exercise will address demand for the product or products of Apple, factors possible to block the success of an innovation, their standards, competitive response, the level of novelty of the innovation, as well as other factors.

White and Bruton (2011) give the following factors to determine the value of an option: favorability of demand for products, factors to speed adoption, factors to block the success of an innovation, the chances of strong competitive response, the likelihood that the possible competitive advantages are sustained, factors inside the company that allow setting standards, the costs to commercialize, the resources available to commercialize, the level of novelty that is captured by the innovation, development costs, certain opportunities that could be advantageous, and possible areas where damage might occur. In dealing with all these factors, we will refer to the iPhone, the innovation that took Apple on its highest peaks of success.

First we refer to the demand for this product. Ever since it was released to the public this product has been nothing but a success. The early prototype that went on sale in June, 2007 blew up the market. According to Vogelstein (2008), analyst were speculating that customers would snap up about three million units by the end of 2007, making from this phone, the fastest-selling smartphone in the history. It was the same story with the following generations of the smartphone and the demand was higher even though they had their first powerful competitor by the end of 2008 when Android came to life with they G1 smartphone. In order to speed up the adoption of this product the company needs to make sure that they keep their quality standards as they are now.

Innovation could be blocked if Apple makes structural changes inside the company or if the key employees in this position want to leave the company. Apple has received a big hit when the heart of this company left us. Steve Jobs was the brain behind all the innovation at Apple and people will remember him a lot of years from now. Their direct competition is the Android operating systems with all the smartphone adopting it. Android is a powerful competitor which has gain a lot from the market of the smartphone and as it currently is, Google’s Android has a higher portion of the market in this area compared to Apple. To sustain a competitive advantage, Apple needs to keep innovate and offer quality to their...
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