Apple Successes
Three of Apple’s biggest successes are the iPod, iTunes, and iPhone. Introduced in 2001 the iPod offered consumers and easy interface to house up to 1000 “on the go” songs. For Apple, the iPod offered a monopoly type product with high margins. The iTunes application also rolled out in 2001 and offered users and easy interface to search and download music and movies. In 2002, Apple released the Windows version of iTunes instantly revolutionizing the music delivery market. To date Apple holds the number one spot for sales of MP3 players. The introduction of the iPhone combined the functionality of a cell phone, the iPod, Apple operating system and camera. Now users had mobile entertainment in the palm of their hands.
Apple Failures
Three of Apple’s biggest failures are the Power Mac G4 Cube, Motorola Rokr, and PodNano 3rd Generation. The PowerMac G4 Cube is still known as being a revolutionary product to the industry. However, it was high priced, overheated and hardware components had a tendency to breakdown. The Rokr was a joint venture between Motorola and Apple to produce the first “iPhone” type mobile phone. Product Development was in control of Motorola. The end result was poor interface, minimal storage and low phone quality. Even Steve Jobs complained about the product. The iPod Nano; 3rd Generation was Apples attempt to make the first generation iPod less balky. Due to the balkiness of the product it grew a reputation as the”Fat Nano.” The flaws where later corrected with modernized product offerings and Apple returned the Nano to the iPod classic design.
How much of Apple’s success can be linked directly back to its culture? Why?
Jonathan Ivy is the talent behind the customer demanded Apple concepts and products. In an interview Jonathan stated, “Apple 's goal isn 't to make money. Our goal is to design and develop and bring to market good products. ” He continues, "We trust as a consequence of that, people will like them, and as another consequence we 'll make some money. But we 're really clear about what our goals are." (Waters H., 2009)
According to Ive, the key to Apples success is the culture. . The goal is to produce a small number of innovative, high quality, and marketable products. In other words, unless the commitment to innovation or design is authentic and heartfelt, rather than this month 's short-term strategy to cater to a hot trend, it will be nigh on impossible to build a true, innovation-led culture (and emulate Apple 's success). (Waters H., 2009)
During the hiring process, Ive looks for potential employees that will fit the Apple culture. Employees must be open to new ideas, be willing to accept constructive criticism and not point fingers in the face of failure. Apples culture is based on chances resulting in successes and failures.
How do the actions of Apple apply to the TCOs?
TCO : Given a company situation be able to describe the industry dynamics of technological innovation.
The dynamics of technological innovation at Apple are robust. First, Apple owns all the technology implemented in its products. Therefore, it is not exposed to pressure from external sources. Second, Apple tends to use it’s technological marketing and expertise to create markets for products. Experts claim that Apple creates the products that people do not know they yet want. Third, the Apple business model dominates others in the market. The aggressiveness towards new innovation does not give competitors a chance to gain grown. Finally, consumers of Apple products are drawn to the uniqueness and the experience of Apple products. Apple sticks to a few quality products offering little confusion for the customer for selecting the product that fits their needs.
References
Waters, H. Jonathan Ive on The Key to Apple 's Success. Retrieved October 31st, 2010, from http://www.businessweek.com/innovate/next/archives/2009/07/jonathan_ive_th.html .
Warren, C. 5 Apple Hits and 5 Misses: Which Will the Tablet Be?. Retrieved November 1st, 2010 from http://mashable.com/2010/01/27/apple-hits-misses/ .
References: Waters, H. Jonathan Ive on The Key to Apple 's Success. Retrieved October 31st, 2010, from http://www.businessweek.com/innovate/next/archives/2009/07/jonathan_ive_th.html . Warren, C. 5 Apple Hits and 5 Misses: Which Will the Tablet Be?. Retrieved November 1st, 2010 from http://mashable.com/2010/01/27/apple-hits-misses/ .
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