Occasioned by a $195 million quarterly loss, however, Apple took motivation from their mistake and realized that they needed to completely rethink the way they went to market. Apple not only learned from their mistake, they used it to catapult a new innovation. As a background in company’s historical facts, when Steve Jobs looked around Apple back in 2002, he saw a profusion of gadgets: cell phones, PDAs, and MP3 players (including Apple's blockbuster, the iPod). In a flash of brilliance, he asked himself a world-changing question: What if all those functions could be combined in just one device?
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The answer to that insightful question led to Apple's next hit: the Rokr cell phone. The Rokr was a commercial flop, and Apple's short-lived partnership to develop an MP3 cell phone with Motorola is now an embarrassing footnote. In no small part, the iPhone exists today because the Rokr threw the shortcomings of the mobile phone industry into sharp relief. Smelling the industry's stagnation, Jobs began planning the iPhone, even as the Rokr drew withering criticism. Apple’s design process differs from that of most other companies. Traditional design research relies heavily on focus groups and customer feedback about existing products.
Apple tends to place less emphasis on evidence than on intuition, under the theory that consumers can’t tell you they want a product or function if they can’t yet envision it. Instead, they need to be shown a superior alternative. Apple sees itself as being in business to create those revolutionary alternatives. Most companies that try to operate like Apple fail. Often that’s because of who they tap to spearhead the creative process. High-tech devices are built by engineers and often designed by them, too. Unfortunately, engineers tend to design products that they would want to use, which explains why a typical device is am-packed with a hopelessly confusing array of features. Apple has succeeded by making sure its top decision makers all subscribe to the same minimalist philosophy. The result is that the most-used features of its devices, like the iPod’s famous scroll 2. How much of Apple's success can be linked directly back to its culture? Why? Wee in my personal opinion and I do believe many others will share my opinion Apple is that the company cares more about the design of products than any other firm in the market does. Unlike Microsoft, which has historically done a poor job of creating aesthetically pleasing products, Apple really gets design.
It understands what consumers want, it knows how to meet those desires, and it sets out to beat all expectations. It is not always easy, but Apple seems to get it right every time. If an employee does not help the company do that, he might end up with another company sooner than he thinks. Its corporate culture extends beyond its employees to its consumers. Therefore, what it expects from its employees, it also expects from its customers. One of the most important things it expects is for both stakeholders to believe in Steve Jobs. Over the past decade, Jobs has been Apple's savior.
He has helped the company revive its aging business model, innovate beyond all expectations and deliver some of the better products on the market. Instead of trying to satisfy every fringe taste or market niche ,other companies that make laptops, for instance, often sell dozens of models at any given time ,Apple focuses on just a few products in each category. With time and money on its side, Apple strives to make each item in its relatively small stable as perfect as possible. Over time, that helps differentiate the products and build customer loyalty.
The final ingredient to Apple’s success is an intangible energy and interest in doing well. And if the company ever lets that vitality goes, its game over. (That’s what almost happened during the 1990s, before Jobs returned to provide a vital kick start. ) Ultimately, Apple succeeds because it not only beats its competitors but also strives each year to beat itself. As management guru Peter Drucker noted long ago, “Your being the one who makes your products, process, or service obsolete is the only way to prevent your competitor from doing so. ” In the process of trying to outdo itself, Apple often leaves its ompetition in the dust. 3. -How do the actions of Apple apply to the TCOs? In our week one TCO “The Importance of Innovation” I do strongly believe that apple in the process of face of increasing shifts in the world economy, and particularly increased competition across markets and company offerings, it would appear that one of the latest trends in instinctive strategic advice for apple is to become “more innovative! ” Yet being more innovative is not necessarily easy. It is well known that, for more than a decade, it seems as if everyone’s choice for the most “innovative” firm has been Apple.
IPhones, iPads and iPods have changed not only industries, but the way in which we live. Truly, this is innovative success has led to such amazing market success over the past few years. The iPod, which can be seen as the beginning of Apple’s forays outside of mainstream personal computing blew-up CD production and distribution and rattled traditional commercial radio with the introduction of podcasts. It is truly an innovative success story, and it took only eight months for the Apple team to move from start to finish.
Clearly, there are some lessons for innovators in this story. Once the team was pulled together, Steve Jobs put them into a common physical space that although not consistent with their hierarchical position, raised the probability of their having effective and fast conversations. References http://www. forbes. com http://www. digitaltrends. com/features/apples-worst-products http://www. itworld. com/it-managementstrategy/192487/apples-greatest-triumphs-and-worst-failures http://press. princeton. edu/chapters/s9221. pdf