Memorandum-Apples’ Innovation
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Subject: Innovation Problems for Apple
The biggest problem that Apple is facing is lack of innovation. Lack of innovation has created a negative impact on revenue growth and profitability. The new product development process is reduced comparatively. Tim Cook, Chief Executive Officer of the company, is looking to increase the shareholder value to enhance the satisfaction of shareholders. Since the article was written, the firm has faced some drastic changes regarding market share. Shareholders are receiving more dividends than before, and it seems a big change. However, the innovation was the strength of the company in the technology market. Now, the firm is struggling to sustain its innovative culture. It is creating an impact on performance. The long-term impact of this performance is the business struggle. Many companies or major competitors are already given a tough time to the company. Thus, to meet these long-term challenges, the management of the company has opened its corporate campus (Rahman).
Many problems such lack of innovation and declining revenue stream have emerged or been designated. The five forces analysis is a key method to highlight these problems in a competitive landscape. For Instance, the bargaining power of the customer is still low. However, it can become moderate if the firm does not regain its innovative strength. Supplier’s power can be increased due to the development and growth of other organizations such as Samsung, Lenovo, LG, and Huawei. The threat of substitutes is low so far. However, the lack of innovation can help other companies or competitors to imitate products. The immense differentiation and innovation of other companies are helping firms to come up with the best possible substitutes in the market. The threat of new entrants is also in the limelight. Interestingly, they contain the imitation capability and differentiation, and it is hitting the existing competitive position of the company. The rivalry is increasing in the technology market. Immediately, the firm has to take action to regain innovative growth. The second corporate campus, which is triggered by Steve’s vision, is a pertinent initiative (Bariso).
The big solution to the problem is to accelerate the innovation process in an innovative culture. For Instance, product development is declined. Now, the firm must increase the research and development process to improve its product line, especially in the mobile phone category. Apart from the revenue growth and shareholder value, the firm needs to reshape its leadership strategy. Satisfying a few stakeholders such as shareholders by increasing the value is not a single factor. It is important to lead the innovative culture to drive the change. Since the case was written, the corporate campus was established. The purpose of this corporate campus is to increase creativity and collaboration. My suggestion to the company is to set new priorities or preferences now. It is the best time to reconsider things, including corporate culture, leadership, and product development to make a difference in the competitive market.
My recommendation will resolve the problems of the company effectively. For Instance, reconsidering the innovation can help to increase more products, and ultimately, it can create an impact on the sales process. The big reason for declining sales and revenue is the diversion of innovation. If the firm moves forward with Steve Jobs’ legacy, it can gain a sustainable competitive advantage in the competitive technology market (Bariso).
Work Cited
Bariso, Justin. “Why Apple Misses Steve Jobs More Than Ever.” INC. INC, 9 September 2016. Web. 29 October 2018. https://www.inc.com/justin-bariso/why-apple-misses-steve-jobs-more-than-ever.html.
Rahman, Shahriar. “Apple’s bid To regain the innovation lead.” The Daily Star. The Daily Star, 18 September 201. Web. 19 October 2018. https://www.thedailystar.net/bytes/apples-bid-regain-the-innovation-lead-1463557.
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