Case Study: Apple iPhoneAbstractWith the launch of iPhone in 2007, Apple bought another revolutionary and innovative product in the market, creating a strong brand value for its products. In this paper the theories and concepts related to innovations are being understood and dealt with in accordance to the launch of iPhone. Apple’s performance related to innovation is also being studied and found that the company really created an innovative product, which helped it in generating revenues and brand name, keeping it ahead of its competitors. IntroductionThe paper focuses on the innovative product iPhone, launched by Apple Inc.
in 2007. The paper attempts to understand the concepts and theories that govern (Afuah, 2003) and guide the development and implementation of innovation, which, say market analysts, signifies newness, covering six different paradigms of news services, new products, new markets, new methods of production, new ays of organizing the product and exploration into new markets. (Johannessen, 2001) Further, it would critically analyse how well Apple performed in these areas. It would discuss various theories related to innovation and find out whether Apple had adhered to these theories while launching iPhone in the market.
The report would also identify any gaps between actual practice and theory-based practice recommendations, and should make appropriate inferences. Understanding product innovationA product is defined as anything which could be given in a market for generating attention, for consumption or for acquisition and may fulfil the want or need of the consumers, stated management expert, Phillip Kotler. Therefore, a product could be a retail store, a person, a physical good, an organisation, an idea or even a place.
Product innovation therefore is the sum total of generating a new product or service to address a customer’s issue or problem, which would not only benefit the customer but also the customer. In case of innovation, the system is driven by business processes, guiding principles, organisational charts, roadmaps and systems (Kuczmarski 1995). Although, it could be stated that only strategic planning (Charitou & Markides 2003) would not be able to make creative products but these definitely helps in preparing to create innovative designs and ideas, which could be translated into tangent products.
Therefore, it is important to create a structure for the product design and make better, experiment, innovate and make discoveries surrounding it (Tidd et al. 2005). Therefore, it is important to focus on innovation in order for companies to not only become successful but also sustain themselves in the long run. This keeps up with longterm goal of staying abreast with global economy and competitions while intending to make profits through a sustainable product line (Dunphy, Griffiths, Benn 2003) This is especially true for products that in global markets have too many competitors.
In such cases, an innovative product helps in creating differentiation in the market and attracts the target audience as well (Afuah 2003). Apple in fact is an exceptional instance of a firm that has witnessed dramatic turnaround in its revenue in the last few years, due to its policy to create innovative products with universal appeal. The iPod, iPhone and the recently launched iPad are the examples of the innovative products being launched by Apple to create a niche market. Further, studying the revenues of the company in the last few years have also shown that there exist a clear association between the revenue and products being launched by Apple (Sharma et al.