Cyclic Innovation Model

Apple Case study

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Cyclic Innovation Model

Innovation is the successful implementation as well as introduction of products and services, which are new into the market. The model focuses mostly on processes of innovation by offering a detailed and a broad perspective. The modern cyclic innovation model does not correspond to the linear-chain concept but represents the four change nodes. They are scientific research, Technological development, production creation, and market transition. The scientific research node is helpful because an organization has the opportunity to research on various issues affecting their market. Technological development entails a wide range of different fast changing and high-quality download. Such a situation gives consumers to download more and put pressure on rival firms to make them stay updated in relation to newest technologies. significant developments is required in terms of the mobile phone market with 3G handsets considered a reality because of their expanded features made available to customers. This is because the aspect will force multimedia download market to new spheres as well as open up immense break for Apple (Goldstein, 2012).

There is a need for all the process to be managed efficiently by one figure in charge of establishment and distribution in the cycle. This would ensure an organization communicate as well as connect with other organizations. Apple has tried to address the needs of the consumer by the introduction of a smart MP3 player, which dominated competitor products for many years. At the same time, an IPod remains a clear example of how a firm can execute a Cyclic Innovation Model. The introduction as well as implementation of Ipod can easily break down to different steps and nodes. Primarily, the in scientific research, information is collected from market variations plus lifestyles variations (Mouron & Bohanec, 2012). The introduction of Ipod resulted to a social change in that every person started wishing for one, which increased the demand to match up with the music industry. Product Creation permits a company to create and maintain a product that fulfills customer needs, at the same time considering overtime changes meaning it will be necessary to upgrade. Market transition takes into consideration autonomous societal transitions, which are manifested in the markets such as changes in products and services needs. Cyclic interaction comprises both independent innovation drivers, technical together with social, which help in creation of new business that have maximum societal value (Stajnko & Lakota, 2005).

Apple fierce competition

A massive existing as well as new competitors are poised to fight for market share, which necessitates a continuous attention from the management of the Apple company. A detailed look at Apple’s competition shows that the firm is facing aggressive competition from all business aspects. This involves consumer electronics, personal computers, peripheral products, mobile communication, digital music devices as well as related services seems intensely competitive. Rapid technological advancements have considerably increased the competence and usage of PC’s, mobile communication devices together with digital electronics. The situation has led to introduction of new products, which have competitive price, performance characteristics as well as features being launched into the market (Dwivedi et al, 2010). The past several years has seen price competition among Apple’s major product markets being particularly zealous. A common practice in competitors selling personal computers has been aggressive reduction of prices and acceptance of lower product margins to maintain a majority of share in the market. The situation has put constant downward pressure against Apple’s margins. Apart from price, other key competitive aspects in the computing market comprise of product features, performance, reliability, software availability, product quality, design innovation, peripherals, distribution, marketing, capability and corporate reputation.

Reliance on internet connectivity and other substitutes becoming gradually smaller, simpler, and cheap compared to traditional PCs remains a main threat. These devices seem to be competing for a share in the market with Apple’s desktop as well as laptop computing commodities. The firm’s music products together with services are also experiencing significant competition from companies promoting their digital music as well as content with free music and video services. It is evident that iTunes tends to competes along dimensions such as media, price, compatibility, selection ,search, preview functions, content sources, format ,quality, certain online features and downloadable availability of materials. IPod specifications that often influence a person’s decision when buying are battery life, storage, weight, price, touch pad, size, and product type among other factors (Kuckes & Thompson, 2007). Apple presently dominates the market as well as retain a competitive advantage in relation to superior innovation, hardware solution integration, software and content distribution such iTunes Store together with iTunes Wi-Fi Music Store. Nevertheless, the competitive competition in this field is anticipated to increase as competitors try to copy Apple’s approach and incorporate their own contributions to appeal to clients. perhaps most intimidating to the firm’s position is the probable partnership between competitors as well as content providers to provide integrated solutions, which tends to exempt Apple from content access. new entrants risks is also high in terms of player and the service dealing with music businesses mostly from large and established consumer electronics firms like Casio, Toshiba together with Sony . On the other hand, there are on- line companies such as Yahoo Virgin Music downloads, which also pose as a threat. The attractiveness of the markets encourages new competitors to enter because of few entry barriers. The main barrier remains capital, although is not reason enough to dishearten organizations with accessible resources. The speed, which information on new technology tends to spreads can enables start-ups to increase authenticity in the industry quickly (Lee, 2010).

Apple’s entrance in mobile communications world with it is iPhone introduction has put Apple in a new extremely competitive industry, where numerous big, well-funded as well as experienced competitors function. It is obvious that Price sensitivity in relation to consumers remains strong, with fierce rivalry in the market with Motorola being undisputed leader for a long time. The gaining of an edge in terms of competitor behaviour is often associated with antagonistic pricing practices, common product introductions, growing design approaches, rapid technological adoption and product development by competitors. At the same time, new entrants pose an alarming opposition to Apple in terms of the mobile phone market. The noteworthy recognition and gains attained by RIM’s Blackberry shows new entrants potential to increase rivalry. IPhone and Blackberry success will undoubtedly make other producers to attempt to copy interesting features as well as functional applications to generate customer value and compete efficiently with their smart phones.

Apple influence future technology developments

Apple Computer’s strategy in their operations leverages their exceptional capacity to internally design as well as come up with operating systems, application software, hardware, and services to innovate advanced new products. They are differentiated by their usage ease, seamless integration, as well as innovative industrial design. The company’s marketing often starts with simple and artistic product design that tends to generate viral customer attention in relation to Apple products. As the industry is linked to low profit margins as well as cost cutting, the company aims to focus on revelation of radical concepts together with appealing designs to ensure their products remain different. At the same time, its differentiation has increased the loyalty of the brand, which has reduced price sensitivity (Napier & Kumar, 2012). As competitors work to imitate the successful Apple’s products and innovative complementary connection between iPod along with iTunes, the company strive to introduce innovative new products occasioned perfectly to attain first mover returns.

Conversely, the continual re-invention of the company aims at exploring new product categories and shuns price competition in growing product markets. The identification of emerging trends as well as exploitation of early market penetration advantages remains essential to Apple’s innovative success in music distribution. The company has plans of attaining similar results in terms of video distribution and connectivity of mobile phone. Apple aims to change behaviour of people behave unlike competing for the market of traditional products with increased innovations. Refinement and development of products intends to capitalize on PCs, digital consumer electronics as well as mobile communications. The company’s main competencies in diverse product markets reduce Apple’s reliance on single market revenues. At the same time, related diversification permits the firm to share resources and technologies across various product lines. Skills transfers and elusive core competencies builds an aggressive advantage, which has been difficult for Apple rivals to imitate.

Apple’s strategy comprise of pursuit of opportunities to establish demand for their products worldwide. The present business environment has made it easy to expand to international markets with maturation of domestic markets in addition to commodity pricing procedures penetrating the industry. Downward pressure impact on prices can easily be minimized with discovery of alternative markets. High-tech products such as iPhone and immediate success are imminent in different cultures along with societies. Furthermore, t sale and operation beyond the local market can improve the company’s capacity to contend with main rivals and bring knowledge to the firm to expand its innovative ideas pool.

References

Goldstein, N. (2012). iPhone application development for dummies. Hoboken, N.J: Wiley.

Dwivedi, H., Clark, C., & Thiel, D. V. (2010). Mobile application security. New York: McGraw-Hill.

Kuckes, A. F., & Thompson, B. G. (2007). Apple II in the laboratory. Cambridge [Cambridgeshire: Cambridge University Press.

Lee, W.-M. (2010). Beginning iPad application development. Indianapolis, IN: Wiley Pub.

Napier, R., & Kumar, M. (2012). Pushing the limits with iOS 5 programming: Advanced application development for Apple iPhone, iPad and iPod touch. Chichester, West Sussex: Wiley.

Stajnko, D., & Lakota, M. (January 01, 2005). Application of image analysis for monitoring growth and development of apple fruits ‘Malus domestica’ Borkh. during the growing season. Agricultura, 3, 1, 6-11.

Mouron, P., & Bohanec, M. (January 01, 2012). Sustainability assessment of crop protection systems: SustainOS methodology and its application for apple orchards. Agricultural Systems, 113, 1-15.