Case Study: iPod to IPad: innovation and entrepreneurship at Apple
Q1)What are the market segments indentified by Apple and their relevance over the years?
Apple identified four key segments within the market:
-Business,
-Creative Professionals,
-Education ,
-High end cosumers
In 2000, 75% of the sales were to the traditional business and professional markets.
The first ipod was launched in 2001 later followed by a 10 GB version. In 2003, the ITunes
Music Store opened. Access to music and downloads became easier. By 2009, the situation had reversed with 60% of sales in the consumer markets of education, students and the broader consumer market. The search for consumer product in 2001 was the cause of this dramatic turn around.
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Prior to the launch of Ipod, travelling with a large music library was only possible with box of CD favorites, even data storage was small and the transfer speed was very slow. Apple produced a unique stable of software products which were new in the market and they exploited this advantage. Ipod
Touch and Iphones also examples showing them exploiting the advantage. Apple successfully developed their brand and extended their products. Apple created and dominated a new market empire, defended by a product range extended in price, range and quality. Q3) Discuss the Innovation process in Apple by referring to various key points indicated in the case.
Apples innovation process was mainly based on below:
- Building Products that are cool, instinctive, simple to use and provide the most amazing experience - Taking calculated risks and boldly enter new markets. E.g. iPod, iPhone
- Change the playing field by creating new business models. E.g. iTunes
- Creating products as per the needs of kids, teenagers, young adults, adults, parents....
- Providing multiple products / touch points to buyers so they can buy and subscribe to more products all glued through iTunes
Apple studied the market and understood the need for sophisticated mp3 players with minimal size, high capacity, high battery life, updated softwares and download facility. Apple developed all the components in-house, the music store, the player and the software
1. 1. Consider the 4 approaches to creativity. What approaches has Apple relied upon? What alternative have others firms in the industry pursued? What other stoves could Apple implement?
The largest storage capacity for an iPod was 160 gigabytes as of March 2010. Users of the iPods use iTunes to hold their digital files and transfer those files to their iPods. iTunes was released on January 9, 2001 (Apple Inc., 2001). You can also connect to the iTunes Store via the Internet to purchase and download music, music videos, television shoes, iPod games, audiobooks, podcasts, movies, and ringtones. According to Steve Jobs (2010), “iTunes is pretty remarkable. People have downloaded 11.7b songs from iTunes. Over 450m TV episodes. 100m movies, 35m books.160m accounts with credit cards and 1-click. It's the number one online media store in the world." (Engadget, 2010). Steve Jobs announced the release of the iPad on January 27, 2010 at a press conference in San Francisco (Apple Inc., 2010). The iPad is a revolutionary device that can be use to browse the web, reading and sending e-mails, looking at photos, watching videos, listening to music, playing games, and reading e-books just to name a few of the capabilities (Apple Inc., 2010). Once the iPad was released in April 2010 it sold 3 million devices in 80 days in the US (Apple Inc., 2010)
When they introduce Apple II, people started to recognize their presence and they started to receive orders.
Many companies are actively advancing technology as we know it. One of the main contributors to the technological era is Apple. Apple has made positive influences in the technology industry. From introducing the PowerBook, iPod, iPhone, and iPad, Apple has changed the technology industry. Not only has it changed the industry, but Apple has also influenced other companies too.
As one of the most well-known and respected companies in the world, Apple Inc. was one of the few companies to emerge from the recession stronger than ever. Started in 1976 as a computer business, most of Apple’s success has been attributed to its music- and video-related products and the iPhone. Quickly became known then as a company that made innovative consumer electronic products instead of just a company that made computers, it changed its name in 2007 from “Apple Computer” to “Apple Inc.”. As Steve Jobs, Apple’s former CEO and co-founder said, “The Mac, iPod, Apple TV and iPhone. Only one of those is a computer. So we’re changing the name.”
Apple Inc formerly known as Apple Computer Inc which provides corporate Server, MAC OS Systems and Operating System. Apples core product lines are the iPhone, iPod and Macintosh System. Steve Jobs and Steve Wozaniak, The founder of Apple has created the Apple Computer on 1st April 1976 and integrated in the company on 3rd January 1977, in Cupertino California. It has driven the Computer manufacturing market for more than two decades. Mr. Steve Jobs who was expelled in 1985 was return as CEO of the APPLE Inc in 1996 with new Ideas and corporate philosophy. With introduction of successful IPod Player in to 2001 Apple has again proved itself as a Market leader in consumer electronics. Latest era of extraordinary success
The IPod was introduced to the public in 2001. At first, it was only compatible with Mac computers, but two years later, the iPod could be used with any type of computer. This caused sales to skyrocket! Steve Jobs worked with apple inc. to come up with the IPod. Although Apple was not the first to come up with the idea of an mp3 player, no other mp3 player has ever been as big of a hit.
Today’s consumer markets can be broken down into four main demographic areas: College Students, Millennials, Generation
within the industry. The trends relate to what products are available, who and how they are
I see a great product that as yet to reach its full potential. I have many Idea’s to help make this product line as great as possible.
Though the price and investment decisions have been largely under its control, the consumers and competitive factors influenced strategies. Understanding the key variables and the relationship between them were critical to its continuation in the marketplace (University of Phoenix, 2010).
The shifted new strategy of Apple was initiated by the release of iPod in 2001, followed by the iPhone in 2007, then by iPad in 2012. It was the iPod that brought significant growth in Apple. Initially, the iPod was just another MP3 but soon became the icon of the digital age due to its sleek design and user friendly interface. Moreover, iPod could sync with Windows as well as a Mac and offered accessory markets. Soon enough all the competitor in MP3 market had to face the challenge of consumers comparing their model with iPod. However, the greatest challenge that the competitors had to face was the introduction of iTunes store.
Apple’s strategy has evolved as technology does. At the beginning, Apple focused on the computer industry
Apple Computer redefined the portable digital music player market with its launch of the iPod digital music player. This began in January of 2001, when it introduced its jukebox software called iTunes. This software enabled Macintosh users to import songs from audio CD's converting them to MP3 format and storing them on the computer's hard drive. It later launched the iPod digital music player in October of 2001. The iPod was designed to synch to songs and playlists from iTunes via a Firewire cable connection. Once music was downloaded, the iPod provided for 10 hours of continuous play from its rechargeable lithium-polymer battery. Media is stored on iPod's internal hard disk (Day, 2005).
Apple’s history dates to 1974 when two men, Steve Jobs and Steve Wozniak had a vision that inexpensive home computers would soon be in demand. Two years later, Jobs and Wozniak built their first computer in Jobs’ family garage, they named it Apple I. On April 1, 1976, the Apple Computer Company was established.