The purpose of this report is to identify a firm that is widely considered to be innovative. It will include the business environment and how it impacts upon the firm and it’s opportunities for innovation, the sources of competitive advantage and the strategic options that are available to the firm. From the declared strategic options, an evaluation of the risks of implementing strategic change will be made to achieve this option.
1.1 Background to Apple Inc.
Apple Inc. is a multinational corporation that designs, creates and sells goods of the computer, music and mobile-phone industries. Apple’s core product lines are the iPhone, iPad, iPod and MacBook. The company provide us with highly advanced technology, simplicity and design and the sense of luxury in their products. Apple was founded in 1976, and like most companies, the business started small and was not successful straightaway, but now it’s one of the most admired companies in the world. Founded by Steve Jobs and Steve Wozniak’s, it was their dream job as they both shared an interest with computers and wanted to try building their own. (Lusted 2012)
2.0 Why Apple is an Innovative Firm
“Innovation involves the conversion of new knowledge into a new product, process or service and the putting of this new product, process or service into actual use.” (Johnson et al. 2011 p. 296) Innovation is a sustainable source of competitive advantage; it is the application of novelty for economic benefit. It isn’t just all about technology but creating new ideas to solve problems. People who buy products and service’s use it and appreciate it; this is why it is an innovation.
Apple can be defined as an innovative company as they build novelty products like the iPad and iPhone that are unique, simple to use and provide you with the most amazing experience. They are known as trendsetters, taking out products before anyone else, for example Apple introduced the iPhone in 2007 and shortly after
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