Managing Innovation in Business (Apple)


Innovation is a process of change which is used for introducing new ideas in existing products in order to influence interest of customer towards (Patti, Yanes and Siuzdak, 2012). It can be done by modifying its design, internal feature or anything which gives a better experience to customer while using it. This report is based on Apple Inc., an American multinational company which was founded by Steve Jobs, Ronald Wayne and Steve Wozniak in 1976. This report describes about history of innovation  of Apple Inc. Present innovation performance of organisation and its future capability towards innovation. And at last, it includes overall information about the industry.

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Organisation and its innovation history

Apple Inc. is an multinational corporation that is headquarter in California, U.S. The company belongs to technological segment as it provides computer hardware, mobile devices (Iphone), music players(Ipod) and various other products to its customers.

Apple has done lots of innovation in its past decades and it is continuing the same in  future too. Its revolutions were unique and accepted by its users effectively  (Union, 2014). Most successful innovation of Apple were IMac, IPod, IPhone, App store, IPad, Siri etc. Apple has adopted some of the effective innovations in IPhone which have contributed in making it as most successful company. Some successful innovation in IPhone are stated as below:

2008: iOS App Store- Apple have integrated with iTunes stores from which users can easily download or buy application in their apple devices.

2011: Siri- This is a voice integrated computing system inbuilt in Iphone.  Siri is successful in accepting commands from the user and implementing for the same.

2013:  64-bit A7 processor- It is a chips that consist with more bits which can store more data in membrane that is 64-bit A7 processor (The 5 most important iPhone innovations of all time, 2018).

2013: touch ID- It is an innovative touch feature which is installed in IPhone. Touch ID is fingerprint scanner which helps users to unlock their screen with a single touch of their finger.

2015: 3D Touch- This is the first multi touch feature that is displayed on original IPhone. The 3D feature executes various commands on the basis of its pressing force. It gives more priority to the hardly pressed feature on displayed screen.

As per the overall history of Apple, it has been observed that there are numerous of external factors which have influence over growth as well as innovation of this company which are stated as below:

Political: Research and development of Apple is situated in America, which is already developed nation. Political stability that is less changes in legal laws promotes the idea of innovation for Apple as company is getting valid support from the nation in order to increase number of innovation in the country.

Economic: With increasing growth rate of developing countries, the disposable income of people of dominant revenue generating countries for iPhone like US has been increased. This acts as a driver for Apple to make use of innovative practices while developing new models of iPhone as increased growth rate implies wider acceptability from people for new iPhones.

Social: Increasing demand for change in mobile devices have impacted positively on the growth of Apple, as people are easily accepting innovations which are made by this company in recent years (Yin and et. al., 2013). Updated features in Iphone like touch, siri, face detect etc. is increasing interest of customers towards usage of iPhone which is raising its demand at market place.

Technological: Continuous upgradation in technology is increasing demand and expectation of customers. This motivates research and development department of Apple to adopt latest technology in their innovative products. For this, apple is focusing on  using cloud friendly apps and other features in its devices. This innovative practice has impacted positively on the growth of Apple.

Environmental: Increasing concern of people toward safeguarding environment or using eco-friendly gadgets influences Apple to develop idea of using innovation in its component which are used in products (Apple PEST Analysis, 2018). For this, the company is adopting innovation in its batteries, components and processors which are producing less heat. This is shows their efforts in securing environment which in improving customers perception that high technology products are affecting environment.

Legal:  Increasing growth of privacy regulation generates demand of innovation for Apple as the company can take it as opportunity and work on introducing products with high privacy security system. As a result, it will increase its demand among customers as Latest version of IPhone includes high security features.

The organisations existing innovation Performance and capabilities

Apple Inc. has done lots of innovation in the past years and it is presently working for the same in order to improve its performance in innovation. Apple is investing huge amount of money on research and development department as it helps them in differentiating themselves from the competitors by serving new designs with advanced feature. With the help of this, organisation is successfully launching its new innovation at regular basis. Current innovative products which are introduced by Apple are IPhone X, IPhone 8 and Iphone 8 plus. These recent innovation of Apple which have helped the company in attracting customers at regular basis. IPhone of Apple is now consist of 64 bit processors which owns capability of performing numerous of functions at a single time. It smoothers the functioning of IPhone in order to execute the command in less period of time. Research and development department  of this company is presently working hard for extending its future capabilities.

Capabilities of Apple: Far from the present innovation done by research and development department, the company is presently focusing on making plan for the future techniques which will help them in providing customers completely new product for which they have not even thought off (Teece, 2012). For the future, Apple is focusing on providing upgraded IPhone which will include feature of Augmented reality (AR) that means experience of virtual reality. This describes live experience to customers through cameras.

The company have also stated its capabilities for future which includes certain new features by 2020 that is large screen in its plus model with proper finishing and perfecting it. Research and development department of Apple, is also working on making magnetic Smart Connector. This will be considered as an additional feature for Apple Iphone, as with this device its users can share data easily with the computer or any other device by connecting with each other.

SWOT- SWOT analysis refers to framework that helps in identifying the capability of organisation which helps them in improving their business growth. This analysis will be helpful for Apple as it contribute in understanding capability of company which influences them to innovate new products (DU and ZHANG, 2012). Hence, after conducting this analysis Apple will be able to identify its capability in terms of using it in innovation at regular basis.

Strength: Apple is introducing innovative products back to back which gives reason to the company to remain loyal with customers. Its past successful product that is Iphone and up gradation has been liked by customer’s utmost. The company believes in fulfilling each and every desire of customers with its every new innovative product. iPhone with 3D touch was successful innovation of Apple as it mainly accepts command of user on its pressing force. This product have been liked by customer as they have not even heard of this feature earlier. The company is capable of bringing more such innovative features in upcoming iPhone models so that it can gain widespread acceptability and satisfaction from people in future.

Weaknesses: Product of Apple are very expensive as it includes lots of technology and higher expertise who can make an effective product for customer which have not been introduced by anyone (Wonglimpiyarat, 2012). This impacts negatively on the capability of Apple as the company is not able to introduce affordable products for its customers.

Opportunity: Apple can expand its business by introducing reasonable products too for grabbing attention of  middle class people as this segment is of vast number. It will give reason to middle class customer to use Apple mobile phones.

Another capable opportunity for the Apple is that the company can introduce multiple cameras in its IPhone as it will influence special customers who uses camera as a most important feature of phone.

Threat: Google's Android is the biggest competitor for Apple as it provides approximately similar features in smart phones which are much reasonable in comparison to I phone’s. As per present condition Samsung have already introduced huge variety in mobile phone that might impact negatively on the demand of IPhone at marketplace (Dončić, Perić and Prodanović, 2015). As per the future launch planning of Apple by 2020, Android might introduce some new feature or quite similar feature in their mobile phone. Apple is capable of  introducing some more variety of IPhone in reasonable price segment so that they can increase their command over middle class people too.

The industry 2016-2018

Consumer electronic are products or equipment’s which are manufactured by business organisation in order to make life of customers more smoother. It includes various types of devices that includes entertainment, communication as well as office equipment. Mobile phones belong to the communication type of industry. This industry is upgrading continuously with the changing time in order to avail different kind of products and services to customer which are helpful in making their basic functioning of life easier. With the passing time innovation within the mobile industry are most considerable fact that influences customers and their buying (The consumer electronics market in 2017 and beyond, 2018). It has been observed that in past decade innovation in Mobile phones have crossed every limit with its best innovative product. It has enhanced thinking capacity of overall industry and as a result its growth have been increased effectively in comparison to previous innovations.

Presently, this overall industry is focusing on covering new consumer electronic products  which are new and eye catchy for customer. For instance: Apple is planning to introduce its new innovation in their mobile phones that is AR, VR and other related products that can be connected to Internet of Things. In order to grab future opportunities it is important for organisation to analyse overall consumer electronics industry so that they identify best suitable options for them. For this, Porters five model have been used for Apple in order to identify current status of the overall industry. All major factors of this model are described as below:

Competition in the industry: Competition in consumer electronic products like cell phone is high as there are lots of well established large scale companies which are available in the same industry who offers somewhat similar products in terms of technology.

Threat of new entrants: New entrants can not enter easily in consumer electronic industry (Khan, Alam and Alam, 2015). As this industry requires lots of capital to be invested in order to in order to set up effectively. But for new companies it is not possible to invest this much huge amount.

Bargaining Power of Buyers: Power of Buyer is high in consumer electronic as there are numerous of supplier available in the industry from which buyers can directly purchase their desired product.

Bargaining Power of Supplier: Bargaining power of supplier is low as there are numerous of suppliers which are available for the organisation present in this industry. This gives preference to the priority of industry that from which supplier they will like to purchase the raw material.

Threat of substitute products: Threat from substitute products is high for this industry as there are lots of competitor available for the company who offers similar kind of product (Gobble, 2012). This reduces overall profitability of

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