Apple's iPod: An Innovative and Creative Organization and Product

Topics: Apple Inc., Innovation, IPod Pages: 9 (2473 words) Published: January 30, 2014

Apple – iPod

An Innovative and Creative

Module: Business Innovation and Creativity



Internal analysis5
Core competencies5

External analysis 8
Threats 9
Innovative Marketing Strategy 10


Apple – iPod
An innovative and creative organisation


This report looks at the conditions that foster innovation and creativity within the Apple organisation and one of its most successful innovative products, the iPod.

Innovation is the “Process by which an idea or invention is translated into a good or service for which people will pay. To be called an innovation, an idea must be replicable at an economical cost and must satisfy a specific need.”1

In the following pages I have analysed the role played by technological innovation in the organisation and the market development of the iPod. The structure of the report is divided into two sections, first explaining the effect that innovation has on the internal environment of the Apple organisation and details about this company’s core competencies. The second part of the report looks at the external factors, the opportunities and threats that face Apple and also how technology affects the organisation.

Apple is an international organisation that manufactures electronic goods such as the famous iPod, iPhone and the recent iPad. They are also the creators of Mac which is an internet platform and iTunes Media Store. According to Business Magazine, Apple was the world’s most innovative company from 2005 to 2007 and still continues to be a much respected name in the industry with the recent launch of the iPad in 2010. The iPod was first introduced in 2001 and had instant success across the world. It quickly became a must have gadget not only because of its design and user-friendly interface but also because of the commercial campaign that it had.

Innovation can be of different type, usually described as the 4P’s of innovation: product innovation – changes in the products that an organisation offers process innovation – changes in the manufacturing process position innovation – changes of the target market of the organisation paradigm organisation – changes in mental models 2

Innovative products or services are found predominately in one of the above categories, however they usually present characteristic that are specific to the other types of innovation too. Apple’s iPod represents a product innovation as it is a new product that the company offers. After the first release of the iPod in 2001 there have been other fourteen different models of the iPod released all with the same concept but with different sizes and storage spaces. The iPod can also be seen as a process innovation because the manufacturing of this Apple product differs to their other products. The different parts that make up the iPod are manufactured by suppliers in different parts of the world; however the assembly is done by Apple.

Internal Analysis

Core Competencies

“A bundle of skills and technologies (rather than a single discrete skill or technology) that enables a company to provide a particular benefit to customers”

Resources that form core competencies can be both tangible and intangible. Examples include: land, buildings, equipment as tangible and brand names, reputation and patents and intangible resources.

Apple’s mission has always been to create easy-to-use, low cost products that have high technology integrated. In order to achieve their goals their core competency is not what they produce because there are competitors who make similar products. Therefore, Apple stands out as an innovative company whose core competency is creating electronic products with outstanding practicality. This feature has...

Bibliography: Business Dictionary (2010) Innovation [Internet] Available from [Accessed 23rd March 2010]
Hamel and Prahalad, 1994, Competing for the future, USA, Harvard Business School
All Business, 1st October 2010, Core competencies key to developing profitable products [Internet] Available from [Accessed 25th March 2010]
Business Week, 12th October 2004, The Seed of Apple 's Innovation, [Internet] Available from [Accessed 25th March 2010]
Creativity and Innovation, 10th February 2008, iPod- Apple 's Best Innovation, [Internet] Available from [Accessed 30th March 2010]
Vertygo Team 2010, iPodMarketing Strategy, [Internet] Available from [Accessed 10th April 2010]
Cnet UK, 14 May 2009, New Apple Mac ads: Stitch that, Microsoft!, [Internet] Available from,39029450,49302265,00.htm [Accessed 20th April 2010]
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