BUSINESS MANAGEMENT

Innovation as a Business Strategy



Introduction4

Sources of Innovation4

Introduction of Apple5

Literature Review6

Critical Analysis8

Apple as Leader of the Industry8

The Landmark Step8

Innovative Marketing Strategy9

Age of Digital Hub10

Integration of Intel in Every Apple System11

IPod and Music Industry Innovation12

Synch with Windows Operating System13

ITunes another Successful Innovation13

Integration with Major Record Labels14

Failures of Innovation15

Conclusions15

Recommendations16

References17

List of Tables

Cash and Investment of Apple, IBM and Google5

Net income for Apple and Microsoft9

Apple's Market Caps10

Marketing Grid of Apple11

IPod Sales vs. Other Handsets12

ITunes Music Store14

World Wide IPod and ITunes Sales15

Innovation as a Business Strategy

Executive Summary

One of the main catalysts of the growth in business is innovation. It has been said time and time again that if one wants to give some impetus and push to the economy, the best way to do that is to make sure that there are enough advancements and businesses are pro active in creating quality products for the consumers. It is sometimes referred as catalyst to the economic growth. The world and the way business is being conducted has changed for as some of the advancement in communication technologies have opened up some new avenues for the businesses (Chesbrough & Rosenbloom, 2002, p.555). Technically speaking, the business can gain competitive advantage only if the business is pro active and ready to make the most of the opportunities that are presented to it. Some of the entrepreneurs can only satisfy their customers if they are willing and good enough to make sure that all the sensibilities of the people are being fulfilled. The greater way to increase and retain the customer base is also to be able to keep re inventing the product. Even when one talks about the organization as a whole, they can augment their chances of success if they are able to re vitalize themselves with more modern and sophisticated methods that are bound to increase the success and efficiency of the organization as a whole.

Sources of Innovation

Some of the sources of innovation are surprisingly due to some of the internal factors that are affecting the industry in some manner. While the advancement and the change in the market structure might also prompt the businesses to go for innovation. The change in the industry, market, and the demographics at the local as well as international level might prompt the business to go for innovation.

Introduction of Apple

One of the greatest examples of how the innovation can really bring a change in the landscape of the business is Apple Inc. It all started with the couple of college dropouts, designed a computer circuit which they named as Apple (Chesbrough & Rosenbloom, 2002, p.555). After the several months of the culmination, they were successful in selling those computer processors in the large quantity. The basic idea and the thinking on the part of the Steve Jobs were to make sure that PC's been part of every home and at that time they were treated as an expensive accessory. But the innovation or the novelty that was brought by Steve Jobs was to make sure that PC were the ...