Contents

1.0 Introduction .................................................................................1

2.0 Content ........................................................................................1
2.1 Cyclic Innovation Model illustrate the innovation process ............. 1
2.2 Can the iPod survive with fierce competitions? ............................. 2
2.3 How Apple influence future technology developments or establish
strategic alliances to ensure it is a dominant forces? ........................... 2
3.0 Conclusion....................................................................................3
4.0 Reference List ...............................................................................4


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1.0 Introduction
The case study is about the success of Apple company with their Apple iPod and iPhone raising
the licensing question for Apple. Apple has been developing their own products since Steve
Jobs return in 2001. Apple iPod was released on 2001 where the product was only usable in
MP3 format which produced high quality audio. Apple has produced 5 different iPod over the
years and all the models improved with different looks for every time they upgrade their
products. The Apple iPhone was then released in 2007 with a new model each year and
Samsung is Apple's direct competitor as both product are quite similar when it comes to function
and application.
2.0 Content
2.1 Cyclic Innovation Model illustrate the innovation process
The Cyclic Innovation Model (CIM) is a constant change of process and interaction driven by
innovation using the innovation models by companies at different times (Berkhout and Rietdijk
2010). One of the main reasons for stimulating open innovation using CIM is to leverage scale
and investments, expertise and knowhow, to reduce time to market and support the
accumulation of competencies in specific areas (Van Der Duin P 2006). CIM is divided in to
natural and life sciences, social and behaviourial science, integrated engineering and
differentiated services (Trott 2012). The entrepreneur is positioned at the centre of the cycles
where the idea starts within the circle which represents the innovation circle (Schoen at el
2005).
Apple uses these cycles help to maintain the company from falling as long as they support each
other regardless of different background and ways of working. The social and behaviour leads
to engineering whereas the natural and life science connect with the market goals. The social
and behavioural is the study of human beings and societies across time and around the globe.
This allow Apple to understand the human needs and translates the needs through improved
versions of iPods of which engineers work around the clock to innovate and improve their iPods.
The Apple iPod tend to be different that competitor's products in terms of variety of sizes,
colours, models and the software. Apple's marketing strategy it provide customers high quality
product than other brands which has similar function and also variety of products despite their
high price. They even categorize their product according to different target market and to which
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model of iPod consumer wants. The Apple iPod provide a large amount of internal memory
where songs can be store up to approximate figure of 1000 songs (Apple Inc 2013).
2.2 Can the iPod survive with fierce competitions?
Apple faces competition ever since producing the iPod. The Apple iPod and Sony Walkman
were direct competitor during that generation. Although companies like Sony reduce the price of
their products at very low price, Apple iPod still have the brand value and their loyal customer to
purchase the product. Their customers tend to be loyal as they trust the product will perform
well due to their experiences with Apple's quality products and would less like switch to other
brands.
The upgrade of the iPod induces and innovation on an almost year to year basis in order to
attract their current customers and potential customers to purchase them. Although their pricing
are not as low as what Sony provide, the Apple iPod provides what customer want as
customers form new needs relatively quickly. Sony Walkman had once outsold Apple's iPod in
Japan as Sony's pricing for Walkman is lower than Apple's iPod. However, the Apple iPod still
survives as they have a higher sales share compare to the Walkman (Whitney 2009).
The Apple iPhone also do have their direct competitor, the Samsung Galaxy Series which has
similar features yet are priced much lower than the Apple iPad and iPhone series. Although
Samsung Galaxy is much lower price compare to Apple's iPhone, there are customers who are
loyal to Apple products regardless of high price. Many customers purchase the Apple iPhone
due to promotion from Maxis with a cheaper price whenever they sign to Maxis as their service
provider.
2.3 How Apple influence future technology developments or establish
strategic alliances to ensure it is a dominant forces?
The Apple company has actually influenced customers to purchase their products since the
launching of multiples models of the Apple iPod. Apple has improved their product through
innovation and Steve Jobs and his co-workers made their products more sought after by
patenting their technology so no one can do the same and they will dominate industry as most
of their products are unique. Apart from that, Apple can also buy rights to new and popular
applications so that no other operating system can have the rights to use it for a period of time.
With that, it increases the need for consumers to own the iPhone and its MP3 players. However,
Apple can actually do collaboration with designers for customization of their iPhone cases.
Allowing them to engrave art by popular artists on the back of their phone covers will make their
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product more unique or one of a kind. The need for unique and customizable items has been
very sought after thus making it more attractive for consumers.
In 2007, the launch of the iPhone created global publicity and cemented Apples reputation as a
company that continuously produces truly innovative, sector-disrupting products. They actually
create own social networking app using Facetime to communicate with other Apple users for
free with exception of using Wifi or phone data. However, Apple can try come out with Facetime
without the usage or Wifi nor phone data in the future. To influence future technology, Apple
should create a unique application only accessible by owners of Apple products creating a
community that is large enough that could attract non-users to become users. This could be in a
form of a social networking application that connects one Apple user to another allowing them to
customize and update their page.
Apart from that, many shows have moved from the traditional cue cards to reading phones or
iPads. By collaborating with live shows like the Golden Globes or American Idol or even game
shows they can promote their products and let people see how functional their products are.
During the shows, they can also allow the audience members to use it for voting reasons would
also help in promoting their product. This will help dominate sales because of the large viewer
count.
3.0 Conclusion
Apple has been continuing their product innovation ever since they started to create and
improve their product in 2001. They faced many problems in sales with their direct competitors
but Apple still continue their ways of working by innovating new products and try to be a unique
brand to differentiate with other brands. However, Apple is able to reduce their problems and
willing achieve more than their competitors and they may monopolize the market in future to
stay different from their competitors.
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4.0 Reference List
Apple Inc 2013, Which pod are you?, retrieve 14th March 2013,
<http://www.apple.com/ipod/compare-ipod-models/>.
Berkhout G and Rietdijk J W 2010, Cyclic innovation model: circular vision in open innovation,
pp.4 - 9, viewed 1st March 2013, retrieved from Ernst and Young 2013.
<http://apportal.ey1.dedicated.nines.nl/wp-content/uploads/2010/06/Cyclic-innovation-
model.pdf>.
Berkhout G and Rietdijk JW 2010, Cyclic innovation model: circular vision in open innovation,
viewed 1st March 2013, <http://performance.ey.com/2010/06/21/cyclic-innovation-
model-circular-vision-in-open-innovation/>.
Innovative Leaders 2012, Profile Apple, viewed 10th March 2013,
<http://innovationleaders.org/apple_company_profile.html>.
Schoen J, Mason TW, Kline WA & Bunch RM 2005, The Innovation Cycle: A New Model and
Case Study for the Invention to Innovation Process, Vol. 17, No. 3, pp. 3 - 11, viewed
13th March 2013, retrieved from Ebscohost Journal.
Trott 2012, Innovation Management and New Product Development, Prentice Hall, 5th Edition.
Whitney L 2009, Study: Walkman outsells iPod in Japan, viewed 11th March 2013,
<http://news.cnet.com/8301-17938_105-10344536-1.html>.
Van Der Duin P, Ortt R & Kok M 2006, The Cyclic Innovation Model: A New Challenge for a
Regional Approach to Innovation Systems? Vol. 15, No. 2, pp. 195 - 215, viewed 13th
March 2013, retrieved from Ebscohost Journal.