Is Apple Inc the Most Innovation Organization - Essay Example

Identify an organisation that you consider to be innovative. Provide a brief introduction to your chosen organisation and its general industry context, and then justify your choice in the light of key innovation models, concepts and theory Table of Contents Introduction 2 Brief Introduction of Apple Inc 2 Industrial background of Apple Inc 2 Discussion 4 Apple Inc’s Innovation Approach 4 Product Strategy implemented by Apple Inc 6 Innovation through customer experience 7 Analysis 9 Is Apple Inc the most innovation organization? 9 Findings 10 Conclusion 11 References 13 Introduction Brief Introduction of Apple Inc Apple Inc is one of the most reputed American multinational organizations that develop and designs varied types of consumer electronics, personal computers and computer software’s. Its head office is in Cupertino of California but it excellently controls the entire globe with its inventive product lines iPad, iPod, iPhone, Apple TV, Mac Computers and many others. Due to which, the total revenue and total equity increased by US$ 170.910 billion and US$ 123.549 billion by the year 2013. However, such a reputed image and position is attained by the organization of Apple Inc mainly due to its numerous innovative hardware, software’s and varied internet presentations to its customers so as to fulfil their requirements. Only then, it become successful in amplifying its brand value and market share to a significant extent among many other rival players such as Microsoft, IBM, Dell, Acer, HP, Lenovo etc. Other than this, the organization of Apple Inc always desired to offer best computing practice to its target customers through its high quality products, services and techniques so as to position itself as the dominant one, in this segment (Apple, 2014). Industrial background of Apple Inc The industrial scenario of Apple Inc might be analysed with the help of porter’s five forces. It is presented below: Bargaining power of the customers: the bargaining power of the customers is extremely high. This is mainly due to the presence of numerous rival players as well as substitute products. Moreover, as the technology is advancing at a fast rate, the demand and desires of the customers is also advancing rapidly and so in order to retain its image and dominance, the organization of Apple Inc tried to offer varied types of inventive product lines such as I-hone, Ipad, Ipod etc (Apple, 2014). Introduction of these product lines proved extremely effective for the organization that amplified its market share, which is presented below: (Source: Statisticbrain.com, 2013) Bargaining power of the suppliers: the power of the suppliers is moderate as they had to obey the rules and regulations of the recognised organizations like Apple Inc, Microsoft, Dell etc and had to offer the best quality of raw materials to their products. So that the reputation and loyalty of the brand organizations like Apple Inc remains extremely high within the minds of the customers (Gupta, 2010, pp. 423-434). Threat of substitute products: the threat of substitute products is extremely high in the segment of hardware, software and consumer electronics due to the presence of numerous rival players. Therefore, the organization of Apple Inc had to offer high concentration over research and development department. This is done in order to amplify its brand value and position in the market among its contenders such as HP for laptops, Sony for MP3 player, Samsung for tab etc (Porter, 2010, pp. 189-210). Competitive rivalry: the level of rivalry is extremely high. Due to the organizations operating in this segment, like Apple Inc had to offer high attention over research and development departments in order to develop varied types of unique products lines such as I-pod, IPod, I phone etc. Only then, the organization of Apple might retain its status and recognition in this global market among other rival players (Mathews, 2012, pp 467-488). Threat of new entrants: the threat of new entrants is extremely low in this segment. This is mainly due to the presence of numerous inventive products lines comprising of unique features and technologies that may satisfy the changing demands of the customers easily and effectively. Therefore, it might be clearly stated that due to extensive competitive in the segment of computer hardware, software and consumer electronics, the organization had to implement the most inventive technologies so as to make its inventive products more interesting and fascinating than others. Discussion Apple Inc’s Innovation Approach The CEO of Apple Inc, Mr. Steve Jobs joined the organization in the year, 1974. This is the year in which, the first computing device named ‘computer’ was introduced by Apple Inc. This became possible for the organization mainly due to the presence of the individual such as Steve Jobs, Steve Wozniak and Ronald Wayne, who always desired to change the entire world as they were extremely crazy to think different and uniquely. Such a crazy feeling of thinking encouraged them to develop the first electronic devise that created a recognised position for the organization. Similarly, thinking remained within them and so the organization of Apple Inc became successful in expanding its product lines such as Mac Mini, iMac, MacPro, Ipod, Ipad, laptops, itunes, ilife etc. However, introduction of all these above mentioned product lines became possible only due to the extensive concentration over research and development in order to create distinctive products. Only then, the organization of Apple Inc might become successful in amplifying its brand image and uniqueness in the market among many other rival contenders (Satisticbrain, 2013). Other than this, another prime reason that leads to invention of varied types of unique product lines that improved the leadership position of Apple Inc is the unique coordination and cooperation among Steve Jobs and his cohorts. Due to which, the organization became successful in developing various products such as Mac-book air, iMac etc that attracted the customers towards its end among others. Moreover, in order to fascinate the customers, the organization of Apple Inc tried to offer the products at a quite competitive price but superior quality. Such a differentiated innovation approach proved extremely effective for the organization that amplified its reputation and profitability in the market among many other rival players (Grant, 2010, pp. 256-267). In addition, the organization of Apple Inc always offered more attention over the desires and demands of the customers and so developed the products accordingly. Due to which, it changed its product lines from simple computers to iphone, ipod and Imac in order to satisfy the changing demands of the customers (Forbes, 2011). This innovation approach acted as a boon for the organization of Apple Inc thereby amplifying its market value and leadership in the market among others. Therefore, it might be clearly depicted that the Apple Inc viewed a huge range of transformations of the thinking power of the customers. But they easily satisfied the demands due to their thinking strategy and researching power. As a result, the organization of Apple Inc attained a significant position and market position as compared to its competitors. Product Strategy implemented by Apple Inc In order to enhance the strengths and brand value of the organization, Apple Inc tried to offer high attention over design thinking. It is a sort of thinking that offered solution from the upcoming threats in the coming years. It comprises of three parts such as innovation, business and people (Johnson & et.al. 2011, p. 115). This strategy is implemented by Apple Inc in order to develop highly inventive products that may foster individual work to a significant extent. Other than this, the organization of Apple Inc implemented the strategy of differentiation in order to develop unique products with excellent technology so as to satisfy the needs and demands of the customers. Due to which, the organization become successful in developing varied types of new product lines such as Iphone, Ipod, Ipad etc that amplified its total revenue and profit margin to a considerable extent as compared to others. In addition, due to the implementation of product differentiation strategy or innovation strategy, the dominance and range of customers increased that improved the ranking and position of the organization of Apple Inc in this global market among others (Ellis, 2011, pp. 345-356). Furthermore, in order to develop inventive products and services, the CEO of Apple Inc implemented varied types of training and educational programs that enhanced the inner skills and talents of the employees. Due to which, the devotion and commitment of the employees towards the tasks amplified that proved effective for the organization. Moreover, due to improvement of the skills, the organization became successful in introducing varied types of inventive product lines that enhanced its position in the market (Kotler & Keller, 2012, pp. 534-545). Not only this, due to the ability to develop, highly inventive technological devices such as Imac, Mac-book air, the level of loyalty and reliability of the target customers enhanced that increased their purchasing behaviours. Therefore, in spite of extreme competition as well as economic downturn, the rate of sale and demand of the products of Apple Inc increased as compared to others that amplified its competitive advantage in global perspectives among others (Thurrott, P. 2001). Innovation through customer experience The organization of Apple Inc analysed the requirements and demands of the customers through extensive market research and desired to make a strategic partnership with IBM. By doing so, the organization of Apple Inc became successful inventive technologies of personal computers and computer operating systems (Kazmi, 2010, pp. 523-534). This helped the organization to amplify its portfolio and position in the market among others as depicted by the innovation business model, disruptive innovation. As per this model of disruptive innovation, the organization implements this strategy in order to create new market and value networks. Other than this, this strategy is also described as preferred innovation model as it comprises of the favoured or desired features of the customers (Guillén & García-Canal, 2012, pp. 156-167). For example: as the customers desired to attain varied types of products with inventive technology such as iMac, Mack-book air etc at a quite lowest price as compared to other competitor’s products. Due to which, this strategy proved extremely effective for the organization of Apple Inc thereby amplifying its net profit by more than 230 percent. Other than this, as per the disruptive innovation model, the organization became successful in enhancing its target customers range. For example: kids, teenagers, young adults, adults became fascinated towards the products such as Ipod, Iphone, Itunes etc that enhanced the preference and demand of the products among others (Drummond & Ensor, 2010, pp. 324-334). Other than this, as per the CEO of Apple Inc, innovation and creativity means connecting the desires and demands of the customers. However, in order to develop the products, the organization of Apple Inc implemented highly inventive techniques but simple to use for the customers. By doing so, the organization of Apple Inc became successful in increasing its brand value and trust of the customers as presented by the theory of diffusion of innovation (Halimi & et.al. 2011, pp. 445-456). As per this theory, at what extant and how the inventive ideas are accepted by the individual of different culture. Keeping this idea in mind, the organization of Apple Inc developed numerous customer care centres as well as online sites so as to assist the customers in resolving their queries. Although, all the employees of the organization reacted negatively, still the CEO, Mr. Steve Jobs developed the customer care shops for the Apple Inc. However, creation of these shops, proved extremely effective for the organization that amplified the reliability and dependency of the customers towards these inventive products lines of Apple Inc as compared to others (Bradley, 2012, pp. 223-234). Thus, it might be clearly depicted that due to implementation of the above mentioned policies and strategies, the organization of Apple Inc became successful in positioning itself as one of the most innovative organization in this age of competitiveness. Hence, development of inventive product lines enhanced the financial position of the organization of Apple Inc to a considerable extent. It is presented below: (Source: Statisticbrain.com, 2013) Therefore, it might be stated that the organization of Apple Inc is recognised as the market leader in the segment of consumer electronics, software and hardware as compared to many other rival players. Analysis Is Apple Inc the most innovation organization? The organization of Apple Inc always presented high concentration over the demands and requirements of the customers, as stated by the concept of innovation, customer based innovation (Reatil industry, 2012). Due to which, the organization always tried to develop extremely inventive products and services that may easily satisfy their changing demands. By doing so, the inner strengths and opportunities of the organization of Apple Inc increased that reduced the threats and weakness. Moreover, due to the development of extremely inventive products, the market share and brand value of the organization enhanced that improved its dominance over the substitute threats and bargaining power of the customers in the coming years. Other than this, the organization of Apple Inc partnered with Microsoft in order to amplify its operating systems and software demand (Businessinsider, 2013). Furthermore, the active leadership style and coordinated effort of Steve Jobs and employees, the organization of Apple Inc became successful in enhancing its product lines to a significant extent as compared to many other rival players. Other than this, extensive intelligence thinking power and tactical skills of Steve Jobs is entirely responsible for making the organization of Apple Inc, innovative and creative (Businessinsider, 2013). Due to which, the dominance and reputation of the organization of Apple Inc increased that amplified its status and popularity in the market. Findings After evaluating the above mentioned points, it might be clearly depicted that the organization is recognised as the most innovative one due to its high consideration over research and development department. Along with this, due to the implementation of varied types of training programs, the organization of Apple Inc attained a significant position in the market among its other rival players. Furthermore, the active involvement and support of the CEO, Mr. Steve Jobs, within the organization of Apple Inc, its product lines amplified its demand and sustainability in the market among others. Moreover, due to the technical knowledge and extensive thinking power of the Steve Jobs, the organization became successful in fulfilling the strategy of ‘thinking differently’. This helped to develop unique and distinctive products for its customers that amplified its prosperity and demand among other existing contenders (Beall, 2010, pp. 123-134). Other than this, in order to retain the customers for a longer period of time, the organization presented varied types of inventive products with advanced technologies. So that the requirements of the target customers might get satisfied in order to amplify its reputation and market share. Hence, due to these above mentioned information, the organization is recognised as the most inventive or innovative brand in this global market. Conclusion Conclusively, it might be depicted that innovativeness is the most essential approach taken by the organization of Apple Inc. This is done, in order to amplify its customer base and market share as compared to other competitors. Due to which, the organization became successful in reducing its weakness such as decreased market share, threat of substitute products, changed customer preference etc to a remarkable extent. Other than, implementation of the strategy of differentiation or innovation, leadership style of Steve Jobs also proved effective for the organization of Apple Inc to amplify its productivity and profitability in the market among others. Moreover, presentation of high preference over customer likings and demands, the organization of Apple Inc attained a considerable ranking and position in the market that amplified its equity and distinctiveness. Hence, due to these above mentioned factors, the organization of Apple Inc is considered as the most innovative one that enhanced its prospects and operating income. 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