Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
¶ … Apple Competitor
Creating Disruptive Innovation as an Apple Competitor
Apple continues to create an entirely new level of disruptive innovation in the areas of MP3, smartphone and tablet PCs by continually fueling new ecosystems of musical and video content while revolutionizing the hardware experience. The continual evolution of the iPad is today re-ordering the structure of the PC market and with it, enterprise computing (Apple Investor Relations, 2012). Just as the iPod and iPhone are revolutionizing music delivery it is feasible to assume that that iPad and follow-on tablet PCs will also bring the same level of rapid change into enterprise computing. Apple has redefined the concept of the platform as the competitive force in stable and emerging, high growth markets (Deck, 1997). This focus on ecosystem-driven profitability however is ripe for disruptive innovation at the individual customer experience and device level. The intent of this analysis is to look at how a more powerful customer experience strategy at the device level can reorder the table PC market, using the Porter Five Forces Model as the frame of reference for this transformation (Porter, 2008).
Ecosystems Aren't Enough Anymore
Apple, as of this writing in December 2012, faces a multitude of threats. Their operating systems are under attack from Google and...
The Apple iTunes ecosystem, which at one time generated nearly 30% of all profits for the company is increasingly under attack from free services including Spotify that have very unique, all-you-can-listen-to business models that are making iTunes outdated and expensive (Apple Investor Relations, 2012). iTunes did revolutionize music and video distribution and also showed that scalability across devices could be accomplished relatively quickly from a platform standpoint as well (Deck, 1997). Figure 1, Apple Product and Services Ecosystem, taken from a filing the company made with the Securities and Exchange Commission (SEC) highlights how the iTunes ecosystem works (Apple Investor Relations, 2012).
Figure 1: Apple Product and Services Ecosystem
Source: (Apple Investor Relations, 2012)
Creating a Device That Delivers An Experience By Anticipating Content Interests
What's still lacking in the Apple product line and design philosophy that allows for radical personalization and customization. Apple has not allowed customers to create their own unique iPad designs as the company has adhered to such a strict approach to defining standardization throughout their supply chain, procurement and manufacturing processes (Cusumano, 2008). Apple is willing to forego entrance into higher growth, and potentially…
References
Apple, Investor Relations (2012). Investor Relations. Retrieved November 29, 2012 from Apple Investor Relations and Filings with the SEC Web site: http://www.apple.com/investor/
Cusumano, M. (2008). Technology strategy and management: The puzzle of apple. Association for Computing Machinery.Communications of the ACM, 51(9), 22.
Deck, M. (1997). The power of product platforms: Building value and cost leadership. The Journal of Product Innovation Management, 14(6), 526-529.
Porter, M.E. (2008, The five competitive forces that shape strategy. Harvard Business Review, 86(1), 78-93.
It was then not the device, but the ability to selectively customize the device for a given consumers' tastes and preferences in music that mattered. The iTunes ecosystem, now responsible either directly or indirectly for nearly one out of every four dollars Apple makes, was the most powerful catalyst of disruptive innovation the tech industry has ever seen (Tariq, Ishrat, Khan, 2011). Disruptive innovation was created in the initial
Mobile Computing: A Disruptive Innovation Whose Time Has Come The pervasive adoption of mobile computing devices, combined with cloud computing and the quantum gains in application software are creating a globally diverse collaborative platform. These elements taken together are deliver an exceptionally fast and pervasive level of disruptive innovation across all sociocultural and technology sectors (Bernoff, Li, 2008). The impact of this disruptive innovation is so significant that IT departments have
Apple Industry Analysis Apple competes in the consumer electronics industry, predominantly on the hardware side, but also on the software side. The most significant product that the company makes is the iPhone, which accounts for $155 billion in revenue out of a total revenue of $233 billion. The Mac computers generate $25 billion, the iPad $23 billion, services $19 billion and "other" $10 billion. Most of other consists of software and peripheral
Dyson Case Study Dyson has created a highly profitable business through the use of a series of processes, systems and practices that increase the probability of innovative new products being produced. It is insightful that the founder and CEO concentrates on finding those household items that aren't working well and dramatically improving their ergonomics, performance and value. This takes a unique approach to innovation that is not easily replicated or imitated
Apple Inc. An Analysis of Apple's Operations and Acquisition Potential Apple is one of the world's premier manufactures of a product mix consisting of electronics goods, and related software applications, in a broad range of different industry segments. The organization is known for producing first-class products that are uniquely designed within a quality niche and this strategy has garnered a loyal customer base over the years of the company's development. The company
Strategic Direction of Apple in the Enterprise Apple (NASDAQ: AAPL) has emerged as one of the most profitable and prolific companies in the world, generating a market capitalization rate of $623B as of this writing in late August, 2012, delivering $148B in Revenues in their latest fiscal year and $40B in Net Income (Apple Investor Relations, 2012). One of Apple's greatest strengths is its ability to quickly translate innovative product concepts