Communication companies in the US

Introduction

Apple Inc. is one of the big five companies in the US with its products including iPhone, iPad, Mac and iPod. Despite expanding to several countries around the globe, its main operations and customer base remains largely in the US. As such, this report will focus on US region.
Innovative companies create new ideas and convert those ideas into actions (Mosey et al., 2017). Apple has become a recognized and leading innovation company around the globe. For instance, iPhone which features a large multi-touch glass display led created a new market for the company. Apple thus continues to show incremental innovation by providing products such as update in new versions of iPhones, iPad, Mac, Apple Watch, Apple TV and iOS system (Apple Inc. 2017).
Even then, Apple starts an innovative and successful company; however, its innovation performance for the last five years slightly needs improvement for two reasons.
First the last innovative product in 2016 AirPods product that faced high substitute competition products. Second, apple depends on a constantly restyling strategy and face innovation paradox in their products that makes apple difficult to be innovative; the company limits the innovation of new product and focus on few sparkling innovations while re-using the already existing product design. However, no doubt apple is a great example of innovative company because they create their own market and create a customer demand on their products and services.

Analysis of Eight-Core Areas of Diagnostic Framework

1- Existing Innovative Capabilities of Apple Inc.
The firm executes a blue ocean strategy to create a product and cultural uniqueness by creating the new market space and demand (Ganguly 2020). In the last five years, Apple introduced exceptional products such as Apple watch and Air pods that fascinated consumers with its functionality, design, and technicalities (Myftari 2017). This strategy helps to the Apple Company to develop their own market rather than trying to beat competitors to reach top in the market. However, these products are now being imitated by competitors and offered at a lower price such as Sony, Mpow X3 and EarFun Air to mimic the idea.

With its core competencies, Apple combined skills through its superior innovation expertise and technologies to add customer value by refined the innovative market by eliminating users’ problems with advanced devices to offer them premium value and lifestyle for a long time. The combination between hardware-design capabilities and their proprietary software development. This led to create customer value and allow customer to pay premium price for this value. Also, Apple products create competitive differentiation because it is unique products and services and difficult for competitors to imitate. According to Porter (1980), to be differentiated, business need to create a unique products or services that create value for which customers will pay premium prices for. Thus, Apple enjoys customer loyalty for its products and services, making it highly competitive in the market (Myftari 2017). However, in 2019 iOS-based devices sales in the US down 2.4% whereas, android-based devices were up 2.5% to 61 of all sales (Reichert 2019). This show that apple faced a huge competition recently.

2- Organisational Structure
Apple maintains its competitive edge in the technology industry with its functional business structure because it backs the management in proposing unique tactics (Mosey, Noke, and Kirkham 2017). The respective organisational structure improves the brand’s competency by advancing its association between innovation and organisational structure, improving innovative culture with knowledge creation and advanced capacity to adopt changes and responding to new trends in the market (Lam 2004).

For innovation to be sustained, the organisational structure needs to enable creative thinking, collaboration, empowerment (Mosey, Noke, and Kirkham 2017). Thus, Apple Inc. implements the hierarchical organisational structure, which focuses on the three characteristics, including spoke and wheel hierarchy, product-based division, and weak functional matrix (Meyer 2019). First, Spoke and wheel hierarchy such as software teams and hardware teams; second, product-based division such as Senior Vice President for Software Engineering (iOS and macOS), a Senior Vice President for Hardware Engineering (Mac, iPhone, iPad and iPod), and a Senior Vice President for Hardware Technologies (hardware components); finally, weak functional matrix is the corporate structure allows hardware teams to collaborate with software teams (Meyer 2019).

In this way, the company facilitates information dissemination that is necessary for innovation processes. This structural feature contributes to effective and rapid innovation processes. Henceforth, those characteristics support Apple to enhance the demand in the technology sector by offering consumers supreme value (Meyer 2020). Moreover, the unique organisational structure inclines inter-divisional collaborations product-based grouping and maintains an innovative culture (Podolny and Hansen 2020). With the respective organisational structure, Apple performs exceptionally in embracing entrepreneurial opportunities.

3- People Recruited and Rewarded
In terms of Apple selection and recruitment, recently Apple focuses on hiring a competent workforce with Artificial Intelligence skills and recently hired 600 employees with healthy Machine Learning, natural language processing, computer vision, and other automated skills to improve the innovative strengths (Newman 2017). Apple design their job titles as nine departments for apply. For instance, hardware department include acoustic technologies, battery engineering and camera technologies, and every sub-department have different job description and experiences, the employee selection based on that experiences (Apple 2021). However, the selection of the employees not easy because one of candidates conduct several meetings and get rejected (Edwards 2016).

In terms of internal environment, apple accepts different culture at apple that encourages people from the tech sector to participate from any region to their creativity and talent in boosting organisational creativity (Apple 2021). The diversity among people embraces equal opportunities for all employees and equal salary between man and woman and urges performance-oriented benefits for motivating them to show potential in leading the complex work environment (Stewart et al. 2017). This diversity enhances company innovation (Bozionelos et al, 2014).

However, one of the apple employees face stressful environment because of long working hours (Glassdoor 2021). Also, this could lead to decrease of apple innovation performance. Beside of this, Apple offer multiple flexible medical plans that cover both physical and mental healthcare (Apple 2021). Also, an Apple employee has opportunity to become an Apple shareholder because all employees can discount in purchase of apple stock (Apple 2021). Owing to these benefits, employees will be motivated and will strive to meet the company’s goals which are centered on innovation.

In regard to training, Apple allows personal and professional development for their employees. It offers educational opportunities at Apple University in a plethora of techniques including seminars and classes (Apple 2021). These opportunities enhance the comprehension of the company’s culture, software abilities (Apple 2021). Additionally, Apple offers fully paid sponsorships for formal education. Regarding appraisals, Apple has categorized employee performance into innovation, teamwork and results. Under the performance category, there are subdivisions that include improvement needs, expectations met and expectations that have been exceeded, and everything else is based around these subdivisions and the annual raises are between 0 to 8% (Sneckner 2021).

4- Organisational Processes
Barringer & Bluedorn (1999) indicate a positive relationship between entrepreneurship intensity and five strategic management practices. One strategic management practice is ‘scanning intensity’, a scanning environment to find innovations to assist implemented it within and outside the firm. This could exploit new opportunities. Thus, Apple leads the market with its selective designs and innovation, built, tested, and assessed under technological systems to assure the developed product’s quality and attractiveness (IDF 2020). Last 5 years ago, apple add for iPhone many remarkable features such as Face ID, water resistant, Apple Pay, dual-SIM capabilities (nano-SIM and e-SIM) and develop maximum capacity from 128GB in 2015 to 512GB in 2020 (Apple 2020). However, Petro (2019 p1) argue that apple updated incremental changes on their products rather than creating innovative technology ‘Apple is the house that innovation built. Without innovation, there will be no more Apple’.

The third strategic practice is ‘locus of planning’, which is evolving business processes with the change in advanced technology and innovative culture influence work and employees’ effectiveness to perform exceptionally with dynamic skills and approaches (Tidd and Bessant 2020). In product development, supply chain management, R&D, cultural development, and other Apple organisational processes, the management promotes individual opinions and ideas to escalate work creativity (IDF 2020). Moreover, Apple possesses a strong innovative culture, where employees are encouraged to brainstorm, experiment, and iterate their ideas with creativity by maintaining the organisational values (Tidd and Bessant 2020). Further, management emphasises lateral thinking by exploring random thoughts inventively to develop new product ideas (Cannistraro 2016). Correspondingly, Apple’s organisational processes are entrepreneurial because of the growing focus on innovative thoughts and ideas scanning.

5- Innovation Challenges
Innovations result from the interaction of a number of sources. As such, identification and overcoming challenges related to innovation through solutions is imperative in the development of services and products that consumers will purchase (Yun et al. 2018). In the past five years, Apple has faced significant challenges that require advanced innovation-based solutions (Apple 2021). In 2019, the entry of 5G into the market was predicted to shake up the competitive landscape for smartphone. While other technological giants such as Samsung and Huawei were projected to unveil their 5G enabled devices, Apple was slightly late indicating a non-growth environment (Meyer 2019).

Other than the fact that the technology of machine continues to proceed at an astounding rate with innovations coming in rapid succession, Apple is also faced with the challenge of slowing hardware innovation. As such, despite taking the lead over other smartphone manufactures in the integration of new features, it becomes hard to deliver hardware innovations that appeal to the consumer. Some of the company’s suppliers struggle to produce sufficient devices that would make possible for novel features for its products more specifically the iPhone (Meyer 2019). As a result, Apple has witnessed most of its products going the downward trajectory in the recent past. Mac, iPad and iPhone sales are weakening and has had investors agitated with the company’s move no longer to report on iPhone unit sales.

Regarding the decline of the iPhone sales, research indicate that consumers are no longer buying the smartphone for the new features but as an upgrade from older iPhone (Myftari 2017). They have become dull and Apple needs to make them exciting again in order to reinvigorate the market. The decline in iPhone sales is allegedly behind the idea that Apple should not be valued by unit sales but by modelling the average lifetime value per user. Another challenge with the sale of iPhones is the stagnant sales (Myftari 2017). With the consumers perception that iPhone no longer excite them, it is hard for the company to keep pushing users towards more expensive iPhones.
The source of innovation appropriate to overcome the challenges above is that of needs pull (Yun et al. 2018). Apple needs to lean innovation programs while fine tuning and improving its internal processes. Now that the company’s current mission is fundamentally customer –centric, its innovation should be centered on the needs of the consumers (Apple 2021). Innovation is usually the reaction to a real or apparent need for change and hence the need to develop a clear comprehension of needs and ways to meet those needs. This specific source of innovation lies at the edges of existing markets. Working directly with the consumers while identifying their different needs creates different innovation options (Mosey, Noke, and Kirkham 2017). Hence establishing close relationships with existing and prospective customers fosters innovation and the system is designed to deliver what the market wants and often a great deal more.

6- External Stakeholders and Innovation
A firms’ innovation strategy is important in evaluating significant opportunities to enable its sustainability in the market (Mosey, Noke, and Kirkham 2017). Apple keeps a tight lid on its employees, suppliers and partners with the exception of strategic leak which is designed to elicit excitement around its product launches (Myftari 2017).

Through closed innovation, Apple has gained a reputation of being innovative and creative and hires people that are passionate about its products and are willing to make the best products in the world. Despite these creative employees being given clear cut direction and close supervision, they actively empowered and given the freedom they need to make amazing products.

Its style of closed innovation is based on the billions of dollars used in secret research and development (Mosey, Noke, and Kirkham 2017). The style has enabled Apple to design stylish, powerful and pleasing to use products that are edited to cut through complexity leaving things out consciously Myftari 2017). The style works effectively in enabling the company to pioneer into new business spaces and creating new market niches by creating game changing innovations such as the iPod, iTunes, iPhone and iPad.

Apple opines that great partners bring along great possibility. Its partners therefore provide best in class mobile strategy consulting, back-end system integration, app development and corporate networking (Apple 2021). Through its partnership with Accenture, the company has increased productivity, reduced costs, unlocked new revenue streams and improved customer experience. Accenture has created dedicated Apple practices within select Accenture Digital Studios where development experts are colocated (Apple 2021). By working together, the teams help the enterprise clients transform how they engage with customers using iPad and iPhone.

Apple and Salesforce have partnered to enable how businesses engage with customers by combining the globe’s best CRM with the most advanced operating system for businesses (Meyer, 2020). A remodeled Salesforce app offers its customers and developers exhilarating experiences that take full advantage of the iPad and iPhone. Also, Apple and Cisco have partnered to create the best experiences using apple devices on Cisco network (Apple 2021). Cisco thus provides leading networking, collaboration and security collaborations for apple’s products. The partnership has allowed the integration of iOS, iPadOS, macOS, and the newest technology from Cisco, enabling businesses everywhere to connect seamlessly hence optimization of their businesses.

7- Uncertainty and Failure Management

For managing uncertainties and failure, modern firms responsively execute modern tools and innovative tactics to manage the consequences of the unpleasant conditions (Gallop 2019). By observing Apple’s responsiveness and the risk management tactics to deal with the emerging uncertainties in the external environment, Evan (2020) reflected that Apple actively deals with the external threats and outperforms the competition with the latest tools and strategies. Highlighting the global pandemic, Apple secures a strong position in the growing crises by adopting various approaches to shift the threats into opportunities (Evans 2020). Diversifying skills, shifting from product to the subscription model, using reserves appropriately, improving business agility, customer-focused offering such as Facetime, supporting remote working culture, promoting change with focused roles, and staying optimistic are the creative tactics Apple adopted during the critical phase and manage global uncertainties meaningfully with improved sales (Evans 2020). Additionally, Apple uses the latest technology to mitigate uncertain risks with Enterprise risk management and incident management that backs the firm with front-line reporting, automated workflows, and centralise incidents and report formation (Logic Manager 2020).

8- Exploratory and Exploitative Learning for Innovative Performance

Comment 1: I want from you to show how apple exploit current resources such as its position in its app store through its supply chain, customer service, and its personalized services in the Apple Retail Stores to gain competitive advantage. And how apple use this information to explore new products such as Airpods and Airpods, AirTag and working on Apple Car.

Comment 2: Also, I want from you to mention about apple have different organization structure for expletory learning and explorative learning? They work individually and they have team unit to creating new products?

Comment 3: all the products and examples have to be last 5 years, and I want analysis analysis analysis not just positive data I want also disadvantages.

Sample 1: Company one
How does the organisation reconcile exploitative and exploratory learning?

To spur innovation, it is crucial that a firm effectively sustains exploratory and exploitative learning (Mosey et al., 2017). However, a tension exists between the two types of learning. As outlined by Mosey et al., (2017), a firm needs to be efficient with its current business demands whilst being adaptive to future demand. Thus, TW’s long term-survival is contingent upon its ability to balance these two types of learning (O’Reilly III, and Tushman, 2013). TW’s exploitative capacity appears to be adequate. TW uses customer feedback, data analysis and internal dialogue between colleagues to acquire and utilise existing knowledge. Furthermore, post-mortems and retrospective meetings are held for the whole company to discuss previous
projects, how they impacted customers, what was learned and how to avoid making similar mistakes in the future (TransferwiseHandbook, 2020). However, TW’s approach to exploratory learning appears to be superior. Unlike many firms who undertake acquisitions to access new knowledge, TW primarily utilises partnerships (Transferwise, 2018). In doing so, TW is exposed to less risk and can potentially access a wider range of knowledge.

Sample 2: Company two

Capturing knowledge and learning is a foundation for innovation and something that helps to create a great competitive advantage (Mosey et al, 2017). As mentioned at Gymshark the average age of employee is 28 (icaew, 2020), this creates the question of whether or not there is a good level of tacit knowledge within the organisation that has been gained from
previous experience of what works. This lack of knowledge may obstruct on certain decisions being made correctly.

However, something greatly encouraged by Gymshark is organisational learning (OL) which involves improving actions through better knowledge and understanding (Fiol and Lyles, 1985). Learning across divisions and knowledge sharing is constantly encouraged with the new GSHQ being built specially with lots of open and communal work and social spaces.

Furthermore, the risks that Gymshark are willing to take in terms of entering new markets are what continues the learning. Taking a dual perspective to learning, Gymshark are keen to exploit what they currently have but also exploit new ideas through explorative learning (March, 1991). With the founder mentioning a possible expansion into footwear (Gymshark YouTube, 2020). However, in order to remain competitive in a now saturated market, ambidexterity between explorative and exploitative learning is crucial. Gymshark currently favour a contextual ambidexterity approach rather than a more structural approach (Birkinshaw and Gibson, 2004). Due to Gymshark being a new organisation, they are able to take a bottom up approach to innovation which includes the “best idea wins” practice which encourages learning. Also, the benefits of being a new organisation is that they don’t have a strong narrative for tradition and history so aren’t constrained for new learning. As Autio et al (2000) say, new firms have the advantage of not having to try and change things. But Levinthal and March 1990 suggest that absorptive capacity comes from past/prior knowledge and experience and as mentioned Gymshark has a very young age and experience of managers so may struggle to process information.

https://www.jstor.org/stable/2634940?seq=1#metadata_info_tab_contents

find the cost of your paper

This question has been answered.

Get Answer