Innovations of Apple - Research Paper Example

? and Section # of Apple Apple Inc., formerly known as Apple Computers, manufactures world’s most innovative consumer electronics, computer hardware and software and commercial servers. Apple is recognized in the electronics industry for its innovative appealing designs and unique marketing campaigns. It has a strong and loyal customer base which trusts Apple’s products beyond measure. Fortune magazine ranked Apple as the world’s most admired company in 2008, 2009 and 2010. It was established in April 1976 by Steve Jobs, Ronald Wayne and Steve Wozniak. The company was previously known as Apple Computers for 30 years and in 2007, it was renamed as Apple Inc. to reflect the intended expansion of Apple in the field of entertainment technology. Apple’s Innovation In a periodical it was stated about Apple, ‘…this is truly one of the most innovative companies on earth, one that has defied the odds and overcome amazing adversity.’ (DeMarzo) Apple has always provided its customers with unique products which are ahead of time because its engineers are product-oriented. They create even before the consumer realizes that he needs it. In this period of global recession when companies are laying off their employees and cutting back on its research, Apple is successfully moving forward through ‘...investing, inventing and innovating. In an interview Steve Jobs once pointed out, “Some very good product people invent some very good products, and the company achieves a monopoly. But after that, the product people aren't the ones that drive the company forward anymore. It's the marketing guys or the ones who expand the business…” He explains that engineers of the company initiate an upward move by creating products but it’s the responsibility of the marketing personnel to keep the show running. It’s not just innovation and product development that defines the success of a product but it is important to understand how it is delivered to the customer. Very often, new inventions are not acceptable to the customers because they are not accustomed to the new product. Apple doesn’t advertise to reach out to its first customers but use it to help their first customers reach out to the rest. Apple’s marketing is so consumer-oriented that people buy their products even before seeing it. This happens when people market products for the consumers. An example of this is 250000 iPhone sales on the first day prove the success of their marketing strategy. Apple is, without doubt, the most successful consumer electronics company but it focuses primarily on business-to-consumer market. In my opinion, Apple should partner with other companies and also focus on business-to-business market. Partnering with other companies would enable Apple to grow its business through joint initiatives. For example, recently Nokia has partnered with Microsoft which enables it to become a massive force in the Smartphone industry, the advantages are numerous, both companies can exploit each other’s best resources and get ahead of the competitors. If apple caters to business to business market, it would be a new horizon for the company to grow. There is a lot of potential in Business to business market as the firms are becoming more aware of creating and maintaining competitive edge through being agile towards new technology. These strategies will not only boost its profits but will also help them create more innovative products like they did when they partnered with Intel and HP. I believe that Apple has become a market leader of business-to-consumer market and now, it should also work towards becoming the market leader of business-to-business market. Industry Analysis: Above 100 million iPods have been sold already since 2006. On the contrary statistics show that game consoles sold in 2006 stood at 26 million, digital cameras at 94 million, mp3 players at 135 million with iPods commanding an 80% market share and PCS sold at 209 million. Mobile phones sold at 957 million. Apple’s iphone’s role would thus be to reach at least a 5% market share before 2012. They must be looking for 50 Million sales for this. It is a very fragmented market with new competitors emerging Company Performance: The brand name of Apple is Huge. It is recognized all around the world and has immense brand presence. There is a huge array of brand loyalists to its credits which means that there are a number of loyal followers who would prefer Apple over any other brand. Apple has a competent marketing team that encompasses the best of the industry and they also have a strong research and development team and they focus on it. These factors can enable Apple to capitalize on its vast brand name and current brand loyalists by rolling out advanced versions of their products such as the IPod and the IPhone. If Apple continues to do so, build a stronger brand perception, capitalize on current customers and develop more user friendly products, it should not have any problems in flourishing and evolving with the market and retaining its position in the industry. However, there is a huge threat of substitutes as there are other competitors who are coming up with similar products. The competition in the industry is fierce. But this can be overcome by Apple’s branding and with its excellent marketing it can overpower any such threat. The research and development team at Apple undergoes constant innovation to cope up with the challenges of the industry. Some of the threats that Apple is faced with revolve around the declining funds available for research and development and there is a huge dependency on Steve Jobs for marketing endeavors. This strengthens the position of the competitors and the threat of the substitutes and risk of increasing prices. However, Apple can utilize its current customer base and built-in market for more products and attracting revenues and customer for them. It can increase channel power and develop brand positioning. These factors show the constant performance of the company and its future. The recession that has hit most parts of the world has not been as effective over Apple. Apple seem to be recession-proof and has been in a position to take advantage of the tough economic times. The robust sales of Apple laptops and IPods enabled it to overcome the worst sales season in years. The sales were more than expected and there was an increase in the markets share. It is said that Apple has been taking advantage of the falling component pricing and with its advanced marketing and innovation is constantly attracting the consumers. Despite having the share of the 70% market for Mp3 players, the sale of IPods is constantly growing. This is because of the constant innovation and agility that the products have. There are new advancements every season, color, touch screen, video and so on. Similar is the case with IPhone, the IPhone enables apple to be miles ahead of the competitors and has made a superior place for itself in the market although there have been new phones coming out that are close imitations of the IPhones. Recently, Apple has been criticized for having substandard corporate governance. It is argued that despite the enormous success of the company, it remains to be under-governed and poorly directed. The board does not meet frequently and regularly, with fewer actions taken in favor of the company. Moreover, majority of the directors are outsiders who work for or own other companies and keep busy with that. Apple needs to have the board engage more and keep the shareholders satisfied. Apple website contains information about the CSR activities it states “Apple is committed to ensuring the working conditions in Apple’s supply chain are safe, that workers are treated with respect and dignity, and that manufacturing processes are environmentally responsible. Apple’s suppliers are obligated in all their activities, to operate in full compliance with laws, rules and regulations of the countries in which they operate.” Apple follows a number of Labor and Human rights such as against discriminations, child labor, harsh treatment and so on. It follows health and safety measures regarding industrial hygiene, protection, physically demanding work. There are separate committees that ensure work health and safety. Apple has environmental policies regarding wastewater and solid waste emission, air emission, pollution and others that ensure environmental safety. Apple has adopted the precautionary approach and claims that throughout the complete production process, from design through manufacturing, use and recycling, it ensures that its products and activities are environmentally sound. The paper was written with the help of secondary research. Online articles and documentations were referred. Newspapers and magazines were used to gain insight on the recent developments. Websites and blogs were also used to get information. Conclusion: Apple has become a phenomenon in stylish and luxuries electronic products. It has marked its position and perception in the minds of the consumers as being the market leader. The constant innovation in new products and advancements in recent version has enabled the company to retain the attention of the consumers and keep them coming back. With the recent medical leave of Steve Jobs, the biggest concern is regarding the fate of the company without Steve Jobs. Steve Jobs is very important for Apple because of his charisma, innovation, leadership and vision. Having said that, Apple is has now developed itself as a strong brand that has a good market and research team. The ideas and patents of Apple can lead to its success in the future with a competent management team and constant innovation, Apple can keep intriguing its consumers. Works Cited DeMarzo, R. C. (2004, 01 26). "Apple's Mac: 20 Years Later And Without A Channel -- Reminiscing about Apple's history, its innovation and its inability..." Retrieved April 4, 2011, from eLibrary: http://elibrary.bigchalk.com/elibweb/elib/do/document?set=search&dictionaryClick=&secondaryNav=&groupid=1&requestid=lib_standard&resultid=10&edition=&ts=B0EB2A4CA368847A1D0AF786018BCD39_1285578369051&start=1&publicationId=&urn=urn%3Abigchalk%3AUS%3BBCLib% Apple, “Apple Supplier Code of Conduct”, 13 November 2005, http://media.corporateir. net/media_files/irol/10/107357/corpGov/AppleSupplierCoc111305.pdf (11 April 2011) Cellan-Jones, R. “Is Apple Recession proof?” BBC News. April 6, 2011. < http://www.bbc.co.uk/blogs/technology/2009/01/is_apple_recession_proof.html> Krazit, T. “Apple proves recession-resistant, for now” Cnet news. April 6, 2011. < http://news.cnet.com/8301-13579_3-10147621-37.html> Finlay, J.R. "Apple's Titanic approach to Corporate Governance". Finlay on Governance. April 7, 2011. Read More