Ipod to Ipad: Innovation and Entrepreneurship at Apple

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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.…show more content…
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
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