Apple innovation and strategy Essay Example | Topics and Well Written Essays - 3000 words

Apple innovation and strategy - Essay Example The intention of this study is innovation as fundamental prerequisite for competitiveness and economic well-being. In major industries, to innovate has almost become less risky and since both consumer and industrial markets have come to expect regular changes and improvements in the products, most firms find it profitable to make innovation their grand strategy. Apple Inc., the American Multinational company that was established by Steve Jobs, Steve Wozniak, and Ronald Wayne in the 1970s, has emerged as one of the most successful Fortune 500 companies; and perhaps the best known for innovation. It designed, manufactured and marketed personal computers, portable music players, software, computer peripherals and a number of different kinds of electronic products, through its own retail stores, online stores and sales force or third party sellers. Apple Inc. has been able to create and establish a strong brand name for the company through a number of strategic and innovative steps such as Macintosh, iPod, iPad, iMusic, iTunes, iPhone etc. As Kerin, Hartley and Berkowitz pointed, Apple Inc. has always been thriving on innovation. Its history showed that it has ignited the personal computer revolution during 1970s with Apple II, and it reinvented the personal computers in 1980s and gaining a brand loyalty with iMac in 1990s. It has alter been able to discover increased opportunities through iPod, Apple iPhone and 3-G iPhone in recent years. Apple Inc. has thus become academically important and practically an effective model since it has made use of technology and considered innovation as the central to its strategies. Milestones in Apple’s History Apple has been thriving on innovation, which in turn has helped it gain sustainable competitive advantages. Apple’s innovation strategy is very evident from its innovation designs, product differentiation, own-store retailing and brand loyalty focus. These strategic developments are detailed below: The Innova tion Strategy of Apple Inc. Product Designs Innovation can be of different forms and at different stages of product designs and development. A firm may innovate in manufacturing, or planning or designing, R&D, distribution, marketing etc. When it comes to Apple’s case, the main success factor was its innovation in product designs. Betz (2002, p. 194- 195) argued that Apple Inc. hasn’t long been coasting on borrowed innovative technology and it wasn’t a technology creator until the mid of 1990s. Apple’s CEO Steve Jobs then realized that an organization can never stay long on a technology leader strategy unless it becomes a technology creator. In 1997, Steve Jobs cut Apple’s total product lines to four such as laptops for consumers, laptops for professional users, desktop for consumers and desktops for professio