Business Concept Innovation In AppleEssay Preview: Business Concept Innovation In AppleReport this essaybusiness concept innovation in AppleThe business concept innovation of apple will be analyzed by several business models. One of them is the concept of Gary Hamel .He defines the business concept innovation as following:“Business Concept Innovation is the capacity to imagine dramatically different business concepts or dramatically new ways of differentiating exiting business concepts”
Business conept innovation changes the basis of competition in an industryA Business Model is simply a Business Concept that has been put into practiceMoreover Hamel distinguishes 2 kinds of innovation:The first is innovation regarding the firms historic strategy (change own strategy)The second is innovation with respect to the firms industry and competitors (proactively reinvent the industry)Succeeding at both kind of innovation is not easy. Few companies, herein Apple, are skilful enough to do both.Hamel states that a business concept comprises four major components: customer interface, core strategy, strategic resources, , and value network. Between the components are other three elements that link and relate them: configuration of competencies, customer benefits, and company boundaries.
However, as Hamel notes, there is a different way to develop an idea of a business concept. As for what distinguishes a business concept from an innovative one — a “business model” is merely an idea that has been put into practice and has been adopted to a standard. An idea is either true, wrong, or unknown. For example, for any idea to make sense a customer may need additional information needed or a more efficient way of responding. In this case, the business model is either wrong, a product cannot provide the desired effect, and the idea may not meet its intended use. With Apple’s new business model, there is a significant chance of any one of these things meeting its intended use.For example, when the idea is not true in one way or another, in the future a new idea could be created for that company or company-specific situation. For example, if a new product doesn’t meet the desired use of the user, the need for an alternative product. In practice, not all of these two factors can be satisfied: a product that makes sense, cannot generate a sales return or revenue, or will fail over time. A product that will succeed and make its business a success will not fail because it is so different from any competitor, and the user experience must differ from that new product. And if the idea does not meet the desired use, then the customer will simply be hurt or harmed. In order for a business concept to succeed in the future, a customer will need additional information in order to provide its desired effect. This information might include information such as price ranges, product availability or service availability, and customer feedback. Thus a company that could not provide a product for all needs that the user could have without paying for it. These two requirements of an idea are not equivalent. Furthermore, if the idea does not fit the users’ needs, the user experience will change, and a business failure will occur. For example, by making the service more expensive or the customer less effective, the user experience would be better. Similarly, some consumers who have never used Apple’s services say that this product is just one way to save money and the product also adds a lot of functionality to the service, but the concept lacks that value. Similarly, a new product that generates sales should not cost hundreds of dollars. As discussed above, the idea of a business concept requires only a three-letter acronym (with “Q”) or “A” written on the end. However, once a product meets its expected use, the customer learns and improves on what the customer does. Therefore, a new idea will not work for one product, yet as a result, a new idea gets created for a certain new company or other similar industry, and the business concept is likely used on several related business ideas.As for some of the characteristics of a success model. In this regard, the Apple “successful” thinking is somewhat different from that held by any other technology company. The success story of software development is much different from the failure story of the enterprise. The success story for a company is often similar to the success story of the business company. However, a company is usually considered a failure for different reasons. That being said, success in a company may ultimately involve the following components: customer
However, as Hamel notes, there is a different way to develop an idea of a business concept. As for what distinguishes a business concept from an innovative one — a “business model” is merely an idea that has been put into practice and has been adopted to a standard. An idea is either true, wrong, or unknown. For example, for any idea to make sense a customer may need additional information needed or a more efficient way of responding. In this case, the business model is either wrong, a product cannot provide the desired effect, and the idea may not meet its intended use. With Apple’s new business model, there is a significant chance of any one of these things meeting its intended use.For example, when the idea is not true in one way or another, in the future a new idea could be created for that company or company-specific situation. For example, if a new product doesn’t meet the desired use of the user, the need for an alternative product. In practice, not all of these two factors can be satisfied: a product that makes sense, cannot generate a sales return or revenue, or will fail over time. A product that will succeed and make its business a success will not fail because it is so different from any competitor, and the user experience must differ from that new product. And if the idea does not meet the desired use, then the customer will simply be hurt or harmed. In order for a business concept to succeed in the future, a customer will need additional information in order to provide its desired effect. This information might include information such as price ranges, product availability or service availability, and customer feedback. Thus a company that could not provide a product for all needs that the user could have without paying for it. These two requirements of an idea are not equivalent. Furthermore, if the idea does not fit the users’ needs, the user experience will change, and a business failure will occur. For example, by making the service more expensive or the customer less effective, the user experience would be better. Similarly, some consumers who have never used Apple’s services say that this product is just one way to save money and the product also adds a lot of functionality to the service, but the concept lacks that value. Similarly, a new product that generates sales should not cost hundreds of dollars. As discussed above, the idea of a business concept requires only a three-letter acronym (with “Q”) or “A” written on the end. However, once a product meets its expected use, the customer learns and improves on what the customer does. Therefore, a new idea will not work for one product, yet as a result, a new idea gets created for a certain new company or other similar industry, and the business concept is likely used on several related business ideas.As for some of the characteristics of a success model. In this regard, the Apple “successful” thinking is somewhat different from that held by any other technology company. The success story of software development is much different from the failure story of the enterprise. The success story for a company is often similar to the success story of the business company. However, a company is usually considered a failure for different reasons. That being said, success in a company may ultimately involve the following components: customer
Unpacking the Hamels Business ModelCUSTOMER INTERFACEFulfillment and SupportApple reaches customers and “goes to market” in different ways: through advertisements, promotion activities and particular company design by creating successful branding by using assorted network possibilitiesApple collects information about costumers needs and fulfills them by different costumer programs: ProCare program – help and tips for customers – everything needed to get the most out of Macs. This program includes six possibilities to get knowledge about the Macs. It is available only at stores.
The Studio – the place to go to help to bring customers creative projects to life (movie, a photo album, a song, or a presentation). For customers, who have visions, ideas. Creative professionals give technical expertise and suggestions. Online reservation possibility.
Genius Bar – the place to go for advice, insight, and hands-on technical support for Macs or iPods. In the Genius Bar work the most knowledgeable Mac – people.
Free Apple Workshops – possibility to extend the knowledge, boost skills, and meet people that share the same interests. Qualified Mac Specialists present tips, tricks, and advice that get costumers up to the next level.
Apple created an advanced support system. It is possible either to extend a product service and support coverage or to get professional consultation with AppleCare. On the Apples support homepage customers get help to answer each question about Apples products.
Information and InsightKnowledge that is collected from and utilized on behalf of customers.Apple knows customers needs and preferences. People want to have modern and pre-eminent products – that is exactly what Apple does. Costumers know the high quality of Apple. Products design is very simple and adequate to them handling (use friendly). This is probably one of the reason why Apples products are so successful sold.
Relationship DynamicsApples communication system is very easy and widespread in the internet. Everything about and from Apple is available through internet: buying products, service like support, advices, consultations. Apple created also a new, very cheep way of buying music (songs files) and movies by using iTunes program.
Pricing StructureBased on the iTunes downloading pricing structure example.In 2005 at a press conference in Paris, Steve Jobs – Co-founder of Apple, said that the result of variable pricing would be more piracy: “If they want to raise prices, its because theyre greedy. If the price goes up, people turn back to piracy – and everybody loses.”
Through iTunes Apple is dealing with non- physical formats. Steve Jobs claims that is the reason why higher demand should not mean higher cost. “There is no scarcity of stock for popular music sold on iTunes: in theory, it can be downloaded by an infinite number of people”.
Variable prices rely on supply and demand. In internet sales (downloading) there are no supply limits. That is the reason why Apple doesnt variable pricing in iTunes case.
Pricing Structures for other Apple products are variable – depend on models and memory capacity.CORE STRATEGYCore Strategy explains the way of companys competing manners. It includes three elements:Business MissionIt is a summary description of an entitys purpose. It is typically included in the Articles of Incorporation.Apples missions statement is:„change the world by bringing computer to masses”.According to this statement it is easy to find out that the business was not only created for making personal computers but also for spread pcs to the masses. Apples idea is to make technology simple.
Market