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How Apple Is Organized for Innovation

Joel M. Podolny
Morten T. Hansen

When Steve Jobs returned to Apple, in 1997, it had a conventional structure for a company of its size and scope. It was divided into business units, each with its own P&L responsibilities. Believing that conventional management had stifled innovation, Jobs laid off the general managers of all the business units (in a single day), put the entire company under one P&L, and combined the disparate functional departments of the business units into one functional organization. Although such a structure is common for small entrepreneurial firms, Apple—remarkably—retains it today, even though the company is nearly 40 times as large in terms of revenue and far more complex than it was in 1997. In this article the authors discuss the innovation benefits and leadership challenges of Apple’s distinctive and ever-evolving organizational model in the belief that it may be useful for other companies competing in rapidly changing environments.

It’s about experts leading experts.

Idea in Brief

The challenge.

Major companies competing in many industries struggle to stay abreast of rapidly changing technologies.

One Major Cause

They are typically organized into business units, each with its own set of functions. Thus the key decision makers—the unit leaders—lack a deep understanding of all the domains that answer to them.

The Apple Model

The company is organized around functions, and expertise aligns with decision rights. Leaders are cross-functionally collaborative and deeply knowledgeable about details.

Apple is well-known for its innovations in hardware, software, and services. Thanks to them, it grew from some 8,000 employees and $7 billion in revenue in 1997, the year Steve Jobs returned, to 137,000 employees and $260 billion in revenue in 2019. Much less well-known are the organizational design and the associated leadership model that have played a crucial role in the company’s innovation success.

Joel M. Podolny is the dean and vice president of Apple University in Cupertino, California. The former dean of the Yale School of Management, Podolny was a professor at Harvard Business School and the Stanford Graduate School of Business.
MH Morten T. Hansen is a professor at the University of California, Berkeley, and a faculty member at Apple University, Apple. He is the author of Great at Work and Collaboration and coauthor of Great by Choice . He was named one of the top management thinkers in the world by the Thinkers50 in 2019. MortentHansen

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A Case Study on Apple’s “Shot on iPhone” Brand Campaign

A Case Study on Apple’s “Shot on iPhone” Brand Campaign 5 min read

Apple, the tech giant known for its innovative products and sleek designs, has been successful in creating a strong brand identity that resonates with consumers worldwide. One of their most notable brand campaigns is the “Shot on iPhone” series, which showcases the quality of the camera on their smartphones. In this case study, we will explore how Apple effectively used this campaign to build brand awareness, increase customer engagement, and drive sales.

Background:

The “Shot on iPhone” campaign was launched in 2015 as part of Apple’s strategy to promote the iPhone 6s, which featured a new 12-megapixel camera . The campaign aimed to highlight the phone’s impressive photography capabilities by encouraging users to share their photos taken with the device on social media platforms like Instagram and Twitter.

Target audience:

The target audience for the campaign was millennials who are passionate about photography and frequently use social media to share their experiences and creations. This demographic is also likely to be interested in upgrading to the latest technology, making them an ideal target for promoting the new iPhone model.

Marketing Objectives:

Build brand awareness and reinforce the reputation of the iPhone as a high-quality camera phone
Showcase the improved camera features of the iPhone 6s
Encourage user-generated content and increase customer engagement on social media
Drive sales of the new iPhone model

Campaign Strategy:

To achieve these objectives, Apple implemented several strategies across various channels:

Social Media Contest: Apple created a dedicated microsite where users could submit their best photos taken with an iPhone. Participants were asked to tag their posts with #shotoniphone and #contest, and a selection of the best images would win prizes such as featuring in a future ad or receiving a free iPhone.

Influencer Marketing: Apple partnered with popular photographers and influencers on Instagram to create stunning visual content shot entirely on iPhones. These influencers shared their photos and videos on their accounts, giving their followers a glimpse into the quality of the iPhone’s camera.

Print Advertising: Apple placed print ads in major newspapers and magazines, showcasing beautiful images captured on the iPhone 6s. The ads featured minimal copy and let the images speak for themselves, emphasizing the quality of the camera.

Shot on iPhone billboard around the towns of the world

TV Commercial: A television commercial was produced, featuring a montage of breathtaking shots taken by everyday iPhone users, set to a powerful narration about capturing life’s moments. The ad ended with the tagline “Shot on iPhone 6s.”

In-Store Displays: Apple retail stores displayed large prints of the winning photos from the social media contest, creating an immersive experience for customers and further demonstrating the camera’s capabilities.

The “Shot on iPhone” campaign was highly successful, achieving remarkable results for Apple:

User Engagement: The campaign generated significant buzz on social media, with over 70 million interactions (likes, comments, shares) on Instagram alone. Users enthusiastically participated in the contest, submitting over 100,000 photos and videos.

Sales Growth: The campaign contributed to increased sales of the iPhone 6s, particularly among the target audience. According to Apple’s Q4 2015 earnings report, iPhone sales reached a record high, with the iPhone 6s being the most popular model.

Brand Perception: The campaign strengthened Apple’s position as a leader in the smartphone industry, solidifying the brand’s association with premium design, innovation, and user experience.

Long-term Impact: The success of the “Shot on iPhone” campaign paved the way for subsequent iterations, including “Shot on iPhone X,” “Shot on iPhone XR,” and “Shot on iPhone 12 Pro.” Each new installment builds upon the previous one, showcasing the continuous improvement in camera technology and encouraging user participation.

Conclusion:

Apple’s “Shot on iPhone” campaign effectively achieved its marketing objectives by leveraging user-generated content, collaborating with influencers, and utilizing multiple advertising channels. By highlighting the exceptional camera quality of the iPhone 6s, the campaign not only drove sales but also reinforced the brand’s commitment to delivering cutting-edge technology and exceptional user experiences. The campaign’s focus on showcasing real-life moments captured by everyday people helped to create a sense of authenticity and relatability, making the brand more accessible and appealing to a wider audience.

Additionally, the campaign’s emphasis on creativity and storytelling helped to differentiate Apple from its competitors and reinforce its position as a leader in the tech industry. By encouraging users to share their own stories and experiences, the campaign fostered a sense of community and loyalty around the brand, leading to increased customer retention and advocacy.

Overall, the “Shot on iPhone” campaign was a resounding success for Apple, driving business results while also building brand awareness and affinity. The campaign’s impact can be seen in the following key metrics:

Sales : The campaign contributed to increased sales of the iPhone 6s, with Apple reporting a record number of sales during the quarter the campaign was launched.
Brand Awareness : The campaign helped to reinforce Apple’s position as a leader in the tech industry, with the brand becoming synonymous with high-quality cameras and innovative technology.
Customer Engagement : The campaign’s social media component resulted in millions of interactions and user-generated content, fostering a sense of community and customer loyalty around the brand.
Marketing Effectiveness : The campaign won several awards, including a Cannes Lion Grand Prix for Outdoor, a D&AD Pencil for Digital Advertising, and a CLIO Award for Integrated Campaign.

In conclusion, the “Shot on iPhone” campaign was a groundbreaking initiative that successfully combined user-generated content, influencer partnerships, and traditional advertising to showcase the iPhone 6s’ camera capabilities and reinforce Apple’s brand values. The campaign’s impact on business results, brand awareness, customer engagement, and marketing effectiveness makes it a standout example of effective marketing in the tech industry.

Also Read: Case Study : Apple’s “Creativity Goes On” Brand Campaign

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Apple iPhone: A Market Case Study

Daylin Van De Vliert Etayankara Muralidharan

Founded in 1976, Apple inc. quickly became one of the biggest companies in the world. Throughout the years, Apple has been apart of the technology market where there has been an exponential amount of opportunities and threats. This market case study aims to determine how Apple can target such opportunities to help predict future trends and influences over the market. To identify these trends and market influences, I have first conducted an environmental scan of Apple’s current and future market(s). Then I described Apple’s fundamental psychological and sociocultural consumer behaviors. And finally, I identified Apple’s target market, how they have chosen to segment and the demographics and geographics within Apple’s largest target segments. As a result of successfully identifying trends in the past, Apple continues to impress with its globally known brand name and customer base/market. However, Apple must continue to identify future opportunities to stay relevant in the ever-advancing technological market. This analysis of the marketing context suggests Apple may need to re-position its iPhones to maintain its leading position in the marketplace.

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The FBI & Apple Security vs. Privacy

How can tech companies and government organizations strike a balance between maintaining national security and protecting user privacy?

In December 2015, the FBI attained the iPhone of one of the shooters in an ISIS-inspired terrorist attack that killed 14 people in San Bernardino, California. As part of the investigation, the FBI attempted to gain access to the data stored on the phone but was unable to penetrate its encryption software. Lawyers for the Obama administration approached Apple for assistance with unlocking the device, but negotiations soon broke down. The Justice Department then obtained a court order compelling Apple to help the FBI unlock the phone. Apple CEO, Timothy Cook, publicly challenged the court in an open letter, sparking an intense debate over the balance between maintaining national security and protecting user privacy.

Apple and its supporters, including top technology companies such as Google and Facebook, made the case on several fronts that the court order threatened the privacy of all individuals. First, according to Apple, the order effectively required the company to write code, violating its First Amendment right to free speech by forcing the company to “say” something it did not want to say. Previous court cases had already established computer code as legally protected speech. Second, such a backdoor, once created, could fall into the wrong hands and threaten the privacy of all iPhone owners. Finally, it would set a dangerous precedent; law enforcement could repeatedly require businesses such as Apple to assist in criminal investigations, effectively making technology companies an agent of government.

Representatives from both sides of the political aisle offered several arguments in favor of the Justice Department’s efforts and against Apple’s stance. Their central claim was that the U.S. legal system establishes constraints on the government’s access to private information which prevent abuse of search and surveillance powers. At the same time, the law still allows authorities to gain access to information that facilitates prevention and prosecution of criminal activities, from terrorism to drug trafficking to child pornography. Critics of Apple also rejected the slippery slope argument on the grounds that, if Apple cooperated, it could safeguard the code it created and keep it out of the hands of others, including bad actors such as terrorists or criminal groups. Moreover, Apple was accused of being too interested in protecting its brand, and even unpatriotic for refusing to comply with the court order.

Ultimately, the FBI dropped the case because it was able to circumvent the encryption on the iPhone without Apple’s help.

Discussion Questions

1. What harms are potentially produced by the FBI’s demand that Apple help it open an iPhone? What harms are potentially produced by Apple’s refusal to help the FBI?

2. Do you think Apple had a moral obligation to help the FBI open the iPhone in this case because it involved terrorism and a mass shooting? What if the case involved a different type of criminal activity instead, such as drug trafficking? Explain your reasoning.

3. Apple argued that helping to open one iPhone would produce code that could be used to make private information on all iPhones vulnerable, not only to the American government but also to other foreign governments and criminal elements. Do you agree with Apple’s “slippery slope” argument? Does avoiding these harms provide adequate justification for Apple’s refusal to open the phone, even if it could reveal crucial information on the terrorist shooting?

4. Politicians from across the political spectrum, including President Obama and Senator Ted Cruz, argued that technology preventing government access to information should not exist. Do you agree with this limit on personal privacy? Why or why not?

5. Ultimately, the FBI gained access to the iPhone in question without the help of Apple. Does this development change your assessment of the ethical dimensions of Apple’s refusal to help the FBI? Why or why not? Should the FBI share information on how it opened the iPhone with Apple so that it can patch the vulnerability? Explain your reasoning.

Incrementalism

Referred to as the slippery slope, incrementalism describes how we unconsciously lower our ethical standards over time through small changes in behavior.

Bibliography

Apple Fights Order to Unlock San Bernardino Gunman’s iPhone http://www.nytimes.com/2016/02/18/technology/apple-timothy-cook-fbi-san-bernardino.html

How they line up on Apple vs. the FBI https://www.washingtonpost.com/graphics/business/fbi-apple/

Why Apple Is Right to Challenge an Order to Help the F.B.I. http://www.nytimes.com/2016/02/19/opinion/why-apple-is-right-to-challenge-an-order-to-help-the-fbi.html

Apple’s Rotten Core: CEO Tim Cook’s Case for Not Aiding the FBI’s Antiterror Effort Looks Worse than Ever http://www.wsj.com/articles/apples-rotten-core-1456696736

Obama, at South by Southwest, Calls for Law Enforcement Access in Encryption Fight http://www.nytimes.com/2016/03/12/us/politics/obama-heads-to-south-by-southwest-festival-to-talk-about-technology.html

U.S. Says It Has Unlocked iPhone Without Apple http://www.nytimes.com/2016/03/29/technology/apple-iphone-fbi-justice-department-case.html

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Apple Inc. in 2023

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David B. Yoffie

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Apple Inc. in 2023 By: David B. Yoffie

The St Andrews Economist

Slicing the apple: an analysis of apple’s pricing strategy.

By Ishika Agarwal

Apple CEO Tim Cook told Bloomberg Businessweek in a 2013 interview, “We never had an objective to sell a low-cost phone. Our primary objective is to sell a great phone and provide a great experience, and we figured out a way to do it at a lower cost.”

Apple is known for its luxurious and classic products. The company exclusively markets premium products and offers its customers products at the top of the mass market – often seen as a status symbol. Apple products are mass-produced, mass-distributed, and price-sensitive – the very definition of a mass product.

Before diving into Apple’s price strategy, it is essential to highlight the key points used while pricing a product in general. Firstly, evaluate the cost of manufacturing the product, and then miscellaneous costs are added, including sales tax, import and export costs, marketing expenses, to name a few. Lastly comes determining the profit margin which the manufacturer decides to make from the commodity. After calculating the costs mentioned above, the final retail price of the product is strategized.

The best business model involves solid sales and high-profit margins. Price skimming is a strategy followed by premium brands like Apple, where the products are priced very high with higher profits so that fewer sales are needed to break even for the manufacturer. Apple uses this strategy to distinguish itself from the other manufacturers in the business. Focusing its central manufacturing units in China, Apple has made a robust supply chain for itself, complementing its profits.

Executives at Apple have carefully formulated the companies price strategy, and it focuses a lot on consumer behaviour. In 2019, Apple launched the iPhone 11, priced at $649, while the iPhone 11 Pro was sold at $999 and the iPhone 11 Pro Max at $1099. Here, the iPhone 11 Pro acted as the decoy since there is not much difference in the 11 Pro and 11 Pro Max prices. So, a consumer would get tricked into comparing the iPhones and eventually buying the most expensive option thinking that they would get more value for the money.

Most technology companies manufacture the hardware (Dell, Toshiba, Samsung), install someone else’s software (Windows and Android), and third-party services (Google), and sell the products through different party’s stores. However, Apple has it all working in harmony. This vertical integration of its own software, hardware, and other services combined creates a unique user experience promising it a loyal consumer base. This virtual ecosystem of technology is unique to Apple.

Apple has always been a forward thinker when it comes to its competitors. It sells products and offers its users a unique tech ecosystem where all Apple products can be synced with one another for its best use. Offering consumers a network of applications and add-ons, including Apple Music, iTunes, iCloud, Apple Pay, Apple Care, and the App Store, allows Apple to independently price its products since these additions are exclusive to Apple users.

Apple’s pricing strategy relies on product differentiation, which distinguishes a product or service from competitors. Apple has been victorious at differentiation, thus creating demand for its products and devising a unique customer base. Their success at differentiation, combined with their brand loyalty, allows the company to have power over their pricing. By establishing a loyal customer base and keeping their prices high, Apple has set up an artificial barrier to entry for their competitors. It is not just about comparing the features of its products with its rivals but the quality to which Apple caters. Its products always possess a minimalist and classic appearance, a branding style synonymous with luxurious brands.

Apple spends a great deal of time, energy, and money improving its iPhones’ processors every year. To date, processors designed have been one or two years ahead of the processors made by its competitors, with the latest M1 chip being revolutionary in the technology industry. Keeping itself on the toes with such technological advancements accompanied by the uncompromising nature of the company when it comes to Apple’s designs and quality is something that sets it aside from the others in the business. The groundbreaking technology in Apple products is the prime reason for the high price tags.

Apple utilizes a minimum advertised price, or MAP, retail strategy. This strategy prevents retailers from pricing their Apple products below the MAP. By ensuring the price for Apple products never drop below a specific price, Apple can maintain their product popularity. The minimum advertised price enables Apple to keep its distribution channels clear while ensuring their profits do not see a decrease. All this lends a hand to keeping Steve Job’s original strategy in place, creating premier products that sell for premium prices. After launching its products, Apple is known to discontinue its previous catalogue. This strategy ensures that customers do not switch to its old devices due to a price drop. Maintaining the price spectrum it offers to its customers is a core strategy of the company, and doing so also ensures the sale of its new product line.

An essential part of Apple’s success can also be accredited to its launch events. Marking products at high prices is not enough for any company, and it does not guarantee sales of its products. What ensures a high volume of sales is hidden in Apple’s launch events. Apple’s product launch events have become the stuff of legend, commanding the attention of a global audience and defining an entire industry. The innovative way of showcasing its products and its features to the customers makes them worth the high price that Apple demands. These events are not only descriptive but also a feast for one’s senses. Every aspect is carefully designed and presented to its customers, from setting the music right to the audio and visuals. When it comes to product designing, innovation, price strategy, and most importantly, the art of selling its products, Apple knows it all. Hence, Apple can be called an organization, lifestyle, brand, business, or all in one.

The views expressed in this article are the author’s own, and may not reflect the opinions of The St Andrews Economist.

Image: Unsplash

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Product Life Cycle (PLC) | Stages and Case Study of Apple

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What is Product Life Cycle (PLC)?

Product Life Cycle (PLC) is a model that illustrates how a product progresses through stages during its time on the market. It serves as a tool for businesses to understand how their products evolve and how to manage them efficiently. This concept plays a role in making decisions regarding product development, marketing strategies, pricing strategies, and distribution channels. In today’s paced world of business and innovation, it is crucial to grasp the Product Life Cycle (PLC).

Key takeaways from Product Life Cycle (PLC): The PLC is a concept in marketing and product management that helps businesses plan strategically and make informed decisions about their products. This cycle represents the stages that a product goes through starting from its introduction to its decline in the market. Understanding these stages allows companies to adapt their strategies effectively maximizing profits and ensuring long-term success for their products. Knowing the Product Life Cycle (PLC) enables businesses to derive the most from their marketing mix (product, price, place, promotion) and to make the distribution of resources appropriate for their products. By proper management of the product life cycle, businesses can gain a competitive advantage and make the best investment out of their money.

Table of Content

How Does Product Life Cycle (PLC) Work?

Stages of product life cycle (plc), 1. introduction, 3. maturity, case study of product life cycle of apple, importance of the product life cycle, advantages of product life cycle, challenges of product life cycle, strategy for product life cycle, international product life cycle, when to use the product life cycle, product life cycle (plc) – faqs.

The Product Life Cycle (PLC) tracks a product’s journey from introduction to decline. Before launch, a product goes through design and development. The PLC itself begins when the product hits the market (introduction). Here, marketing is key to building awareness and overcoming initial resistance. If successful, the product enters a growth stage with rising sales and brand recognition. Marketing efforts may shift to maintaining momentum. Eventually, the market becomes saturated (maturity). Competition intensifies, and companies may focus on cost-efficiency and product improvement. Finally, sales decline (decline), and the product may be withdrawn or replaced with a newer innovation. Understanding the PLC helps businesses tailor strategies for each stage, maximizing profits and a product’s lifespan.

The introduction stage signifies the entry of a product into the market. The initial stage is typically associated with an increase in sales since it involves introducing the product to consumers. During this phase, businesses incur expenses for marketing and research and development (R&D) as they strive to raise awareness and stimulate demand for their product. Companies need to invest in marketing and create distribution channels to ensure that their product is easily accessible to customers. The objective is to establish a presence in the market and generate interest. During this phase, pricing strategies often revolve around two approaches:

Penetration pricing, where a lower price is initially offered to gain market share,
Skimming pricing, where a higher price is charged at first to recover development costs.

The growth stage witnesses a surge in sales as consumers become more aware of the product’s existence and its advantages. This growth is fueled by word-of-mouth favourable reviews and effective marketing campaigns. In this phase, businesses strive to expand their market share by scaling up production and distribution. With the increasing demand, competition may intensify as new players try to capitalise on the opportunity. As the product gains recognition, pricing strategies might shift towards a competitive approach. Companies may also introduce variations or extensions of the product aimed at market segments.

The maturity stage represents the peak of sales and market penetration for the product. Competition typically reaches its point during this period, and attention shifts from attracting customers to retaining existing ones. Price stability and product differentiation become a feature of this stage. Ongoing marketing endeavours aimed at maintaining both market share and brand loyalty. Companies frequently make investments in improving their products, adding features, and implementing marketing campaigns to ensure their products remain relevant and competitive. Furthermore, they may explore opportunities in markets.

In the decline phase, sales of the product start to decrease due to changing consumer preferences, market saturation, or the emergence of alternatives. Companies must decide whether to discontinue the product or continue selling, it with marketing efforts. As existing inventory price reductions or discounts may be necessary, some companies may choose to reinvent or rebrand the product or find markets to extend its life cycle. Ultimately, the decision to withdraw or revive the product depends on its profitability and how well it aligns with the company’s strategy.

Introduction Phase

During the phase from 2007 to 2008, Apple introduced the iPhone, which brought about a significant transformation in the smartphone industry. To generate awareness and create excitement surrounding their product, Apple invested heavily in marketing and promotional activities. The innovative design and user-friendly interface of the iPhone captured the interest of tech enthusiasts. Capitalising on this wave of enthusiasm, Apple implemented a pricing strategy that involved charging prices initially.

Growth Stage

In the years that followed from 2009 to 2012, the iPhone experienced growth. Apple expanded its range of offerings by introducing models like the iPhone 3G, 4, and 4S. The launch of the App Store in 2008 played a role in fueling this growth by creating an ecosystem that catered to both developers and users alike. To meet increasing demand, Apple focused on scaling up production and distribution, while establishing partnerships with telecom carriers worldwide. Product differentiation also played a role during this stage as Apple offered storage capacities and introduced new features such as improved cameras and faster processors.

Maturity Phase

By 2013, the iPhone had reached maturity as it faced competition from Android-based smartphones. The market became saturated with options for consumers to choose from. To keep its position in the market, Apple put a lot of emphasis on improving its products. Released a series of iPhones, including the 5, 6, 7, and 8 models. They also introduced the Plus and SE versions. Alongside this, Apple carried on with its marketing campaigns that aimed to build brand loyalty and make sure customers were satisfied. Moreover, they expanded into markets, which helped solidify their position as a leading smartphone company.

Declining Stage

In years (2019 onwards), the iPhone entered a stage of decline where it faced obstacles, like market saturation and the rise of competitors. To tackle these challenges, Apple has adjusted its pricing strategies and introduced the affordable iPhone SE. Additionally, the company has heavily invested in services, like Apple Music, Apple TV+, and Apple Arcade to diversify its revenue streams and keep customers engaged. By focusing on refreshing its products and building an ecosystem around its devices, Apple has been able to prolong the lifespan of the iPhone and minimize the impact of market decline.

Strategic Decision-Making: This will enable businesses to make informed decisions in regard to marketing, pricing, and product development by pinpointing the specific stage of a product: introduction, growth, maturity, or decline. For instance, during the introduction phase, heavy marketing is required to propagate brand awareness, while in the maturity stage, focus might shift to cost reduction and retention strategies for customers.
Market Planning and Risk Management: Business establishments can perceive the market trends and plan their strategies accordingly because of their clear conception of the PLC. These proactive measures can assist in reducing the risks involved during product launches and ensuring that the most promising features are exploited.
Product Innovation and Development: PLC framework helps businesses pinpoint opportunities for product innovation and development. As the product approaches maturity, firms will be able to introduce new features or new product lines based on customer feedback and changes in the market in order to remain competitive.
Resource Allocation and Optimization: The PLC helps businesses allocate resources efficiently. During the introduction stage, when sales are low, heavy investment might be required in marketing. As the product reaches maturity and sales stabilize, resources can be shifted towards research and development for the next generation of products.
Customer Satisfaction and Retention: Resource Allocation and Optimization: Customer Enjoyment and Retention: Understanding the customer needs and preferences at each PLC stage enables businesses to tailor marketing message and product offering to the customer’s desire in a bid to, in most cases, retain the customer before the maturity stage where competition may be cut-throat.
Informed Decision-Making: The PLC model guides business decisions in the most effective way. If a company knows exactly where its product line falls within the PLC (whether at introduction, growth, maturity, or decline), then it allows for more specifically targeted marketing strategies, prices, and resource planning. For example, during the introduction stage, heavy marketing efforts might be called for brand recognition, while in the maturity stage, the efforts can be diverted to cost-effectiveness and brand differentiation.
Improved Sales Forecasting: With the help of the historical sales data and industry trend analysis from the perspective of the PLC, businesses can make better sales extrapolation and eventually estimation. This helps inventory management, production scheduling, and resource allocation. For example, forecasting low sales during the decline stage would help decide a company whether or not to invest in product innovation or phase out the offering.
Strategic Resource Allocation: The PLC assists businesses in resource allocation across their product portfolio. During the introduction and growth stages, resources might be directed towards marketing and sales to fuel product adoption. As a product reaches maturity, resources might shift towards customer service and production efficiency.
Product Innovation and Development: Understanding the PLC can help businesses identify opportunities for product innovation and development. As a product hits maturity and competition begins to intensify, this product life cycle structure could trigger an examination of feature additions, product improvements, even new product lines in the efforts to hold onto market share.
Profit Maximization : Businesses that strategically adjust to each PLC stage will keep their product going in order to maximize their profits. Some measures may include cost cuts during the maturity phase or product modifications in order to explore new markets during the declining phase.

The product life cycle (PLC) presents a roadmap of the product from launch to decline. It has notable value but, while each stage is vital, overcoming specific challenges is present at each. The difficulties businesses face at each stage of the PLC:

1. Introduction Stage:

Market Awareness: Introducing a new product in the product saturated market is challenging. A brand, as well as its offering, must create awareness through a marketing strategy.
High Initial Costs: At this stage, most of the expenditure was induced through research, development, and the initial production runs for most companies. It is important to balance and cover these costs with pricing strategies.
Limited Distribution: Retailers may be unwilling to stock the company products especially with unproven recognition. Creating goodwill is one steep mountain.

2. Growth Stage:

Company up with Demand: Businesses are faced with the challenge of scaling production to meet the overwhelming surge in demand from potential customers.
Managing Rapid Growth: Rapid growth also comes with a price, a price that the internal resources have a hard time coping with. In recruiting as well as training hired staff, stock keeping, and quality control.
Competition: The success of the developed product attracts competition into the prospective market. The next frontier is to differentiate the product with its brand, innovation, and customer service.

3. Maturity Stage:

Slow Sales Growth: Given a market that is beginning with a slowdown in market opportunities, it becomes increasingly saturated. Businesses must find ways to stall the maturity stage for long enough through means of product improvements, launching new marketing campaigns, or even penetrating a new market segment.
Cost Pressures: Companies find a case presented by the increase in competition, where it is most likely a price war. One must be wary of different prices, and the product offers can sometimes be equal for different prices.
Innovation Fatigue: Customers get used to the product and want it different. A business has to innovate to remain relevant.

4. Decline Stage:

Falling profits: Sales and profits continue to erode, making it hard to continue investment in the product.
Reducing cost: there is a need to look for cost channels into production or even outsourcing.
Product Cannibalization: The entry of new products might end up eating into the market that the degenerating product was previously enjoying. Proper planning and positioning are required to avoid this.

These challenges can be prevented and strategies to handle them worked out in advance, thus optimizing the product life cycle for profitability.

The product lifecycle (PLC) is a key idea in marketing. It gives the stages through which a product passes since it is being introduced onto the market till its eventual decline. To maximize success and profitability of the product it is essential to understand this cycle and make specific strategies for different parts of it.

Four Stages of the Product Life Cycle (PLC):

Introduction: This stage is marked by slow sales growth and high marketing costs, wherein efforts are to create awareness among consumers about benefits of a product and develop strong brand image.
Growth: With the increase in consumer adoption rates, sales volume experiences a sharp rise leading to higher profits. At this point, companies should concentrate on expanding their market share as well as building loyalty among customers for their brands which may allow them even raise prices slightly if necessary.
Maturity: When market saturation occurs along with no more sales growth; competitors become more aggressive thus mandating differentiation strategies or/and innovation. Usually these involve reducing costs; extending product lines while exploring alternative promotional channels among others.
Decline: Due to changes in customer preferences as well release of new technologies that make some products obsolete; sales will dwindle followed by profits. In such cases organizations can opt to rake maximum possible earnings without pushing them back into further development; modify their offerings entirely so they best fit current needs and wants or even quit altogether.

Developing a good product strategy requires understanding the present stage of the product life cycle (PLC) through research and analysis. Companies need to be adaptable, allowed to adjust based on market changes, with long-term vision incorporating strategies to extend the PLC, such as innovation and new markets.

By understanding the Product Life Cycle (PLC) and implementing well-defined strategies for each stage, businesses can ensure their products achieve optimal market performance and maximize their return on investment.

The International Product Life Cycle (IPLC) is a tool for explaining how a product moves from one stage to the other in the different countries of the world market. The IPL is an extension of the product life cycle. While the latter emphasizes increased complexities at every stage, the former involves traversing the characteristics of each market.

International business can take advantage of using the concept of the International Product Life Cycle (IPLC) to design marketing plans and production concepts clearly and adequately approach issues surrounding the product. In other words, with the recognition of the stages in the different markets, a business can design and focus on a designated approach to the market and its surrounding dynamics.

Benefits of International Product Life Cycle

Develop effective Global Marketing Planning
Optimize Global Production and Sourcing Planning
Entry Mode Strategies of International Expansion
Life Cycle Extension of Products within Different Markets

Stages in the International Product Life Cycle

The product life cycle of the IPLC is a replica of the traditional product life cycle, and it generally includes four key stages:

Introduction: The product is launched in a new international market, often the developed home country first. Here, the attention is on the building of an awareness level; an image for the brand is established and the education of the potential customer in regard to product features and benefits is made.
Growth: When the product has started to be revolutionary in its initial market, it then gets introduced into the other countries. This stage involves the exponential sales development, the increased competition, and the demand for really effective production and distribution channels.
Maturity: The period during which a product reaches peak sales in established markets, hence the focus shifts to sustaining its market share and profitability. Companies may engage in price competition, product improvements, or new marketing campaigns to keep the product’s life cycle going.
Decline: Sales begin to slow down because of market saturation, new technologies, or changing consumer preferences. Perhaps companies must consider product redesigns, cost-cutting measures, or exiting the market altogether.

The International Product Life Cycle (IPLC) framework acknowledges that successful product launches abroad require considerations of several aspects: the right market selection based on economic development, infrastructure, and cultural preferences; adapting the marketing mix (message, price, distribution, and promotion) to resonate with each market’s nuances; and, lastly, as the product matures across different markets, so may production and sourcing strategies, which can even engage in outsourcing to clock in at the optimal costs achievable.

Establishing Competitive Advantage: If you are going to introduce a brand new killer application, comprehension of the PLC will enable you to stage the entry. With proper marketing campaigns, you will be able to convey that your new product shakes the market or provides a big improvement over the previous offerings.
Developing a Winning Price Strategy: PLC plays an important role in the determination of the appropriate prices. You could probably give introductory premium pricing a thought, should you be in the introduction stage to recover development costs and position the product as high-end. When the product enters the growth stage and begins to meet stiff competition, you could use competition or competitive pricing strategies. Finally, during maturity, you may cut prices or use bundled offerings as effective tactics.
Developing a Targeted Marketing Approach: The PLC will dictate what you say in marketing and to whom with your marketing. In the introduction stage, you’ll primarily be looking to increase brand awareness and aid in educating potential customers on your product’s value. During the growth stage, it may switch to building brand loyalty in existing markets, or secure the same in new markets. Maturity often focuses on maintaining share and fending off competition.
React Proactively Before Decline: The PLC framework helps you to anticipate the decline of a product and to act in response proactively. You can look toward products’ innovation, trying to find new markets to expand into or looking to phase out a product for the introduction of new products.

Understanding the PLC and its different stages businesses can make educated decisions regarding optimization of the marketing mix (product, price, place, and promotion) , strategic resource allocation towards high-growth products, and the opportunities to develop new products in order to extend the life cycle of a product.

The Product Life Cycle (PLC) is a framework that helps businesses navigate their product’s complex journey in the market. By understanding the four stages of introduction, growth, maturity, and decline, companies can make choices regarding product development, pricing, marketing, and distribution. Effectively managing a product throughout its life cycle can lead to success and a competitive advantage in today’s dynamic business environment.

What is Product Life Cycle?

Product life cycle refers to the journey taken by a product since it was released into the market up to the time it is taken off from the shelves. It has four main stages which include introduction, growth, maturity, and decline. These concepts are used by companies when making decisions on marketing, sales, and investment for each stage of their products.

Why Product Life Cycle is Important?

Businesses need to understand the product life cycle since it provides direction on how to change the marketing, pricing and resource allocation depending on whether the product is new, growing, mature or declining. Doing this enables them make more money and be able to plan for future products.

What are the Four Stages of Product Life Cycle?

There are 4 stages in its life cycle i.e. introduction, growth, maturity and decline. During introduction stage, a product is launched and its awareness is created among the people. In growth phase, sales of product goes up while market also broadens. Maturity is reached at this point where there is stiff competition among different firms for customers thus most companies concentrate on retaining their loyal buyers so as not lose them to other similar businesses operating within the same industry or sector. In decline phase, sales reduce either because old age catches up with it or when another newer one replaces it altogether.

How to Manage Product Life Cycle?

The effective management of a product’s life cycle requires knowing what stage it is at and adjusting the strategy to suit. This could entail increasing marketing efforts during the introductory phase, streamlining production for efficiency when the product reaches maturity, or planning for its retirement as demand wanes. Moreover, you can continuously enhance your offering by utilising customer feedback and data throughout its lifespan.

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Apple target audience , marketing strategy of apple, 5 key takeaways from apple marketing strategy, a case study on apple marketing strategy.

Breaking through with several inventions in the world of technology, Apple Inc. has been carving infinite milestones ever since its inception. Even though its innovations speak for themselves, this highly-valued giant corporation has invested heavily in its marketing team to soar high up as a tech maestro. Apple Inc. realized the role of brand marketing in the success of a venture from the start as a crucial way to connect with its target audience. This brand's marketing is so vigorously carried out and well-thought that it is often an inspiration and a place of research for marketing professionals. Here we bring you a well-curated case study on Apple's marketing strategy, the key takeaways to learn from this venture, and how to incorporate the same in your business and marketing strategies.

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To understand its key strategies for marketing Apple products, let's first understand what Apple's target audience is like. Apple's target audience consists of middle-class and upper-class users who can pay higher for products that provide them with an incredible user experience. This means that these users have a higher disposable income and are willing to pay more for as high-priced products as Apple's.

Let's take a look at Apple's target audience with this comprehensive analysis sourced from Business Research Methodology's report on Apple Segmentation :


Areas	Urban
Gender	All
Age	20-45
Life phase	Bachelors to Married both
Earnings	High
Jobs	Working professionals, managers & executive level workers

Besides this primary classification, Apple also explicitly targets professionals working in specialized software like music, video, photography and all kinds of design careers. These working professionals prefer Adobe’s Final Cut, Photoshop and related editing software which work well with Macbooks and IPads than other operating systems.

Even better, business professionals prefer Apple products such as iPods and Macbooks for their day-to-day work. Products like iPads and Macbooks are lighter and portable, so they are often selected by students (upper-class), educational institutions and teaching.

Now coming to the marketing strategy of Apple, it is a combination of well-designed products with the right user experience, promotional campaigns, distribution, and pricing. Let’s take a look at all these features of Apple marketing strategy in detail:

Focus on Finer User Experience

Apple’s branding strategy is based on its stylish, more straightforward and lush products that focus on providing a user interface that is very simple to use and learn. They are lighter, easy to carry as well as durable. This minimal look and user experience makes it a perfect sell to its target audience, which comes from the middle to upper class.

Suave Yet Simple Advertising

Storytelling is such an essential part of every Apple ad as well as a marketing campaign. Often these ads focus on minimal design as well as high-quality images. They are either blended with music or a simple story. Apple consciously ensures that its advertising and marketing don’t use too much jargon or filler language in its ads. Instead, it shines a light on the product to let it speak for itself without showing what the price is like or using complicated words for its features.

Targeting the Right Markets

Apple is excellent at tapping into its target audiences like a genuine tech witch who knows their aspirations, preferences and pain points! Its market research is always on-point and crystal clear in its products, curation, and features.

Here are the major critical takeaways from Apple Marketing Strategy:

Tapping into your target markets and audience is the key to curating and selling user experiences that value the preferences of its people.
With simplicity and finesse in design, the right products with minimal designs and features can create a perfect impact for your brand.
Incorporating emotion in your advertising and marketing can also help you connect with your audience better.
Don’t exaggerate the copy and conceptualizing of your advertising and marketing campaigns and prefer the “less is more” approach. Create shorter yet emotional and empathetic ads to captivate your target audience.
When you create an international brand value through quality and minimal, sophisticated design, you don’t need to compete in terms of price. Instead, your price will set you apart for your user experience and design features.

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Understanding the real innovation behind the iPhone

Iris S. Wolstein Professor of Management Design, Case Western Reserve University

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Kalle Lyytinen receives funding from NSF

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When the iPhone emerged in 2007, it came with all the promise and pomp of a major Steve Jobs announcement, highlighting its user interface and slick design as key selling points. We know now that the iPhone transformed the mobile phone business, the internet economy and, in many ways, society as a whole. But technically speaking, the iPhone was not very innovative.

Its software and the interface idea were based on the iPod, which was already reinventing the digital music industry . Touchscreens had appeared on earlier phone and tablet models, including Apple’s own Newton . And top-line Nokia phones had more memory, better cameras and faster mobile connectivity. What made the iPhone transformative was the shift in concept underpinning the entire iPhone project : Its designers did not create a telephone with some extra features, but rather a full-fledged hand-held computer that could also make calls and browse the internet.

As a scholar of management, design and innovation , I find it hard to predict what the next truly revolutionary technological development will be. In the 10 years since the launch of the iPhone, so much about modern life, commerce and culture has changed . In part that’s because the iPhone, and the smartphone boom it spurred, created a portable personal technology infrastructure that’s almost infinitely expandable. The iPhone changed the game not because of its initial technology and cool user interface but rather as a result of its creators’ imagination and courage.

Inventing mobile apps

As the iPhone took shape, its designers found themselves torn between making a phone or a computer . Engineers and marketing executives alike worried the new device would kill the iPod market that had driven Apple’s corporate resurgence for five years . Nokia, the biggest player in the cellphone market at the time , had similar technologies and prototypes, and also feared outcompeting its own successful mobile phone product lines that used a simpler and more old-fashioned software platform than that on which iPhone was built.

Apple took the leap, however, by installing a fully capable computer operating system on the iPhone, along with a few small application programs. Some were phone-related, including a program that handled making and receiving calls, as well as a new way to display voicemail messages , and a system that kept different contacts’ text messages separate. Others were more computer-like, including an email app and a web browser. Of course, the music-playing features from the iPod were included too, linking the phone with the emerging Apple music ecosystem.

Initially, that was about it for apps. But skilled computer engineers and hackers knew they were holding a palm-sized computer, and set to work writing their own software and getting it running on their iPhones . That was the dawn of the now-ubiquitous app. Within a year, these apps were so popular, and their potential so significant, that Apple’s second version of the iPhone operating system made it easy (and legal) for users to install apps on their phones .

Shifting priorities

The prospect of making a fully functional hand-held computer changed how users and manufacturers alike thought about mobile phones. For Apple and every other phone company, software became much more important than hardware . What apps a phone could run, and how quickly, mattered much more than whether it had a slightly better camera or could hold a few more photos; whether it flipped open, slid open or was a bar-style; or whether it had a large keyboard or a small one. The iPhone’s keyboard was on-screen and software-generated, making a function that had required dedicated hardware into one running on generic hardware and dedicated software.

At the time of the iPhone launch, Nokia offered about 200 different phone styles to meet all the different needs of its hundreds of millions of customers. There was just one iPhone model at the start, and in the ensuing decade there have been only 14 major styles – though today they come in different colors, not just white and black as the original did. This is the power of software functionality and related simplicity.

The heightened importance of software on a mobile phone shifted the industry’s economy as well. The money came now not just from selling devices and phone services, but also from marketing and selling apps and in-app advertisements. App developers must share revenue with the companies that control smartphones’ operating systems , providing serious earning power: Apple holds about 15 percent of the mobile phone market , but reaps 80 percent of global smartphone profits .

Whatever the next tech industry game-changer is, and whenever it arrives, it will likely have some connection to the smartphone and related infrastructure. Even today, exploring virtual reality requires only installing an app and connecting just a bit of additional hardware to an existing phone. Similarly, smartphone interfaces and cameras already monitor and control intelligent and automated homes . Even as devices are developed to operate all around us, and even in our clothes , many of them will be able to point to the iPhone as a conceptual ancestor and inspiration.

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How Used Products Can Unlock New Markets: Lessons from Apple's Refurbished iPhones

Some of Apple’s most loyal customers think nothing of upgrading to the latest iPhone every time one comes out. But what about consumers who can’t splurge on a $1,000 iPhone 15 Pro? And what about the electronic waste that would accrue if people threw away functional phones?

Long before there were titanium phones with bionic chips, Marcelo Claure, then head of the telecom firm Brightstar, saw an opportunity. A few years after the iPhone’s launch, he reached out to Steve Jobs to convince him to take a big strategic risk: Build a system for refurbishing and reselling Apple’s own smartphones, and salvage recyclable materials to cut costs for commodities and parts for those that don’t make the cut.

“I found that story fascinating. We tend to think about very large companies as having a lot of inertia.”

Claure argued that building a secondhand market for iPhones would enable Apple to not only tap a new market—people who can’t afford the latest iPhone model—but also lower its manufacturing costs. Claure, who’s also the former CEO of Sprint and Softbank, reflected on that conversation to an audience at a Harvard Business School event last year.

“I found that story fascinating. We tend to think about very large companies as having a lot of inertia,” says Professor George Serafeim, who co-led the event. “But here, a very large company that everybody respects for innovation and design and its ability to bring real solutions to the needs of consumers found a way to create a circular economy with its products over time. And not only to expand this market as a cost center, but also make it a profit center.”

Serafeim recently authored a case study that explores how Apple created its own replacement market with the start of its trade-in program in 2013, and bested rivals in the secondary market it expanded. While new phone shipments still outstrip used phones, used shipments across the mobile phone industry rose 12 percent in 2022, according to International Data Corp., as new phones shipments dropped by 11 percent. And the market is forecast to grow by 10 percent a year through 2026.

The benefits of a ‘circular economy’

Many executives might have balked at the idea of creating a used alternative that might cannibalize a flagship product. After all, iPhones account for more than half of Apple’s sales.

However, this “circular economy” model has done the opposite by helping Apple use refurbished iPhones to reach customers in markets that tend to be dominated by lower-priced competitors, the case says. With each customer, Apple gains an opportunity to add subscribers to its music, news, and gaming services.

“Refurbished iPhones are increasingly going to lower-GDP per-capita regions that might not be able to afford a $1,200 iPhone, but they would be willing to buy a $600 iPhone,” says Serafeim, the Charles M. Williams Professor of Business Administration. “Then you also have a software-as-a-service, revenue-generating model because of Apple services, where many of those people are becoming subscribers. And as a result, you have another monetization strategy.”

You don’t need Apple’s unique advantages—but they help

To be clear, Apple’s distinctive innovations helped lay the groundwork for its circular economy success. Specifically:

A well-known brand that holds value . The Apple name gives its products higher “residual value,” making them easier to resell, Serafeim says.
An actively managed operating system. Apple updates the system its devices rely on often, helping the products stay relevant. “That’s really, really critical,” he says. “If Apple didn’t provide software updates for their older phones, then the phones lose value over time.”
Durable hardware . An iPhone is hard to break . The company has spent years making iPhone cases tougher, more water resistant, and easier to repair.
High-end recyclable components . iPhones are made with expensive “rare earth” metals that can be expensive to acquire the first time around.

Designing for environmental impact

Any circular economy relies on products designed with recycling and reusability in mind. That means that the product can be easily disassembled, and the recycled material must cost less than newly made components, Serafeim says.

“In the case of Apple, they have these robots named Dave and Daisy that disassemble phones,” Serafeim says. “That allows them to decrease the costs.”

Apple also worked closely with partner companies. From one metric ton of iPhone logic boards and flexible electronic and camera modules, Apple’s partners extracted gold and copper equal to raw material mined from more than 2,000 metric tons of rock, the case study notes.

“What footwear companies such as Nike are trying to do, they're trying to design products through ‘first principles’ to be fit for the purpose for disassembly and recycling.”

Ideally, the company should be able to trace where the materials came from and how they were processed, so they can be transparent to consumers, who will see the environmental impact of their purchase.

“Customers want recycled materials to go into the product, but they need some kind of answer to, ‘How do I know that is recycled material?’” Serafeim says.

Apple isn’t the only company trying to create more circular economy models. Serafeim points to Nike’s efforts designing new shoes that can be disassembled and recycled easily. IKEA is taking a similar approach to furniture. And batteries for electric vehicles have similar potential because of components such as lithium and rare-earth materials that can be expensive to mine, Serafeim says.

“What footwear companies such as Nike are trying to do, they're trying to design products through ‘first principles’ to be fit for the purpose for disassembly and recycling,” Serafeim says. “That makes a big difference. Because, if you don't do that, then it just becomes so hard. And it means cost. And once you have a high cost to recycle, then you're just not going to do it.”

What it takes to build a circular economy

Serafeim advises companies to think of the circular economy through different models: reuse/resell, recycle, and repair/maintenance. Then leaders can evaluate models based on what makes sense for the product, industry, and business strategy.

“Even if you're a small company, there might be some really significant opportunities either on the revenue-generating side or on the cost-mitigation side or risk-mitigation side that you could explore,” Serafeim says.

To guide their decision-making, leaders might consider asking themselves:

Will this model improve the customer experience? “What are the basic service or product characteristics that you're providing that might make certain products better? What are the options for a circular model?” Serafeim says.

Are your raw material costs likely to change? “Just take the example of plastic. If oil prices are really high, virgin plastic is really expensive. But if oil prices are really low, virgin plastic can be very cheap,” Serafeim says. “So, in an environment where oil prices are high, like the one that we have been living in the last few years, recycled materials may make a lot of sense.”

Could generative AI help identify opportunities? Artificial intelligence tools, like ChatGPT and Google’s Gemini, can serve as a “co-pilot for designing a different solution or identifying opportunities by better understanding and breaking down the needs that your customers might have,” Serafeim says. “In many ways, generative AI can be really transformational because it helps you break down status-quo thinking.”

Which products stand to benefit most? “You might have some products with higher residual value and some production with lower residual value,” Serafeim says. “You might have some products where use of recycled materials might be more cost competitive, and others that might be less cost competitive.”

In some cases, none of these models will apply. Some products don’t recycle or refurbish well—yet. Those include low-quality textiles, Serafeim notes.

“Especially for low-cost and fast-fashion types of textiles,” Serafeim says. “There's very low residual value to the product. You find enormous amounts of textiles that are basically in landfills because there's no residual value. So, it’s not worth it for reuse and you cannot cover the cost of recycling.”

Transparency is key for circular shifts

Ultimately, companies and policymakers can help expand the circular economy faster by setting disclosure rules and practices, Serafeim says. For example, in China, regulations require manufacturers to take back electric-vehicle batteries.

“Transparency creates accountability.”

A uniform set of rules serves customers, companies, and ultimately the planet, Serafeim says. Allowing regulators, companies, and consumers to trace material sources with ease can create trust, an invaluable competitive edge for any firm.

“Transparency creates accountability,” Serafeim says. “And you cannot have accountability without transparency.”

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Think Different: Apple’s Blue Ocean Formula for Success

Written by The Blue Ocean Team

It’s been almost a quarter of a century since Apple’s iconic ‘Think Different’ ad campaign, which captured in two simple words Apple’s vision for the company in 1997. The tagline, which continues to resonate to this day, helped launch one of the biggest corporate turnarounds in history.

As we shall see, Apple’s ‘think different’ slogan also captures what it means to have a blue ocean perspective. In this blog post, we’ll explore how Apple’s ‘think different’ approach led the company to make a series of strategic moves that reconstructed whole industries and changed the world.

Apple’s Think Different led to the iPhone. Photo by Daniel Romero on Unsplash

Think different: think like a blue ocean strategist

Developed by professors of strategy and world-renowned management thinkers Chan Kim and Renée Mauborgne, blue ocean strategy , enables you to ask a fundamentally different set of questions, the answers to which help reveal the long-held assumptions and artificial boundaries we unknowingly impose on ourselves. When you think like a blue ocean strategist , you can’t help but ‘think different’.

Blue ocean strategists aren’t fooled by what the rest of the world takes for granted. Their viewpoint differs from the market-competing logic that is prevalent in the minds of many corporate leaders and entrepreneurs. They think differently, ask different questions, and arrive at different results. Arguably, no one exemplifies this blue ocean way of thinking more than Steve Jobs.

Apple’s ‘Think Different’ campaign transformed the company

Jobs was not a conventional corporate leader. In 1997, just months after returning to Apple as interim CEO, he re-visited the company’s core beliefs and formulated a clear statement of what the company stood for. This came to light when Apple launched a global campaign called ‘Think Different’, which portrayed its products as innovative and unorthodox, in line with its new brand identity.

The “Crazy Ones” commercial linked the ailing computer business with some of history’s most famous freethinking rebels. It celebrated individuals who saw things differently, ranging from Albert Einstein and Thomas Edison to Pablo Picasso and Amelia Earhart. These are the ‘blue ocean’ thinkers and creators, innovators and adventurers who challenged existing laws and refused to stand still.

Apple’s Think Different commercial with Steve Jobs’ narration.

The message behind Apple’s ‘Think Different’ slogan

The tagline of Apple’s ‘Think Different’ campaign expressed how, under Steve Jobs’ leadership, Apple would construct a radically different future from its troubled days in the early 1990s.

Apple’s ‘Think Different’ slogan altered our perceptions of campaigns, advertisements, posters, and, of course, computers and technology. Here’s the transcript from the “Crazy Ones” advertisement:

Here’s to the crazy ones. The misfits. The rebels. The troublemakers. The round pegs in the square holes. The ones who see things differently. They’re not fond of rules and they have no respect for the status quo. You can quote them, disagree with them, glorify or vilify them. About the only thing you can’t do is ignore them. Because they change things. They push the human race forward. And while some may see them as the crazy ones, we see genius. Because the people who are crazy enough to think they can change the world are the ones who do.

The message communicates to customers what Apple stands for by celebrating and linking Apple to those innovators who moved the world ahead. The inference is that Apple users also think different, ask different questions, and potentially change the world.

In Steve Jobs’ own words, “you always had to be a little different to buy an Apple computer.”

“I think you had to really think differently when you bought a Mac. It was a totally different computer, worked in a totally different way, used a totally different part of your brain. And it opened up a computer world for a lot of people who thought differently … And I think you still have to think differently to buy an Apple computer.”

Apple now had three characteristics of a good strategy : it was focused, divergent, and had a clear and compelling tagline. From this point on, the company made several strategically critical and distinctive moves that transformed Apple from a struggling tech company into the biggest and arguably most influential company in the world.

Apple’s Think Different has made it the most innovative company in the world. Photo by zhang kaiyv on Unsplash

The Power of Thinking Differently – Apple’s Blue Ocean Strategic Moves from 2001 to 2011

Throughout history, companies have created growth not by exploiting existing demand but by reconstructing existing industry boundaries to create new market space and unlock latent demand. We call such actions, blue ocean strategic moves, a set of managerial actions and decisions involved in making a major market-creating business offering.

Apple’s strategic moves over this decade took the form of the iPod, iTunes, the App Store, the iPhone, the iPad, and more. Rather than trying to outrun competitors in existing industries, all these strategic moves created new market space, generated new demand and made Apple the most admired and valuable American company within a decade.

Apple may not have been the industry’s first mover, but it was the value pioneer that pushed the industry’s frontiers outward and tapped latent demand.

Let’s look briefly at two of these strategic moves before taking a more in-depth look of one of them, the iPhone.

Think different, listen different: The iPod

In the late 1990s, music began to migrate from stereos to computers. Users increasingly downloaded music to their PCs over file-sharing networks and then copied it to portable MP3 players.

By 2001, over 75 manufacturers offered about 100 MP3 players. However, users had to choose between small, low-volume flash memory players and huge, high-volume, difficult-to-use hard drives.

On October 23, 2001, Apple released the iPod with the tagline, “1,000 songs in your pocket.” The iPod had the storage capacity of a hard drive player but was also simple to operate and transport. Unlike most MP3 players, the iPod allowed users to navigate hundreds of songs intuitively with their thumbs.

It was a huge hit and dominated MP3 player sales. iPods made up 21.6 percent of the global digital music player market in 2003, and sales accounted for nearly half of Apple’s $7.1 billion in first-quarter revenue in 2007. By 2010, Apple had sold over 297 million iPods and had a 70% market share, reconstructing the digital music player industry in the process.

Think different, shop different: the iTunes music store

By the late 1990s, the music industry had seen significant changes. Why visit record stores when you could order CDs from internet sellers such as Amazon.com? Or even better, just download songs in digital format and play them on a variety of audio devices.

People had two options when it came to obtaining music online. There were file-trading networks, like Napster and Kazaa, which allowed users to search for and download songs from other people’s music libraries.

An alternate means to download music without infringing on intellectual property rights was to subscribe to online music services. Although subscription-based music services delivered legal, high-quality music, they had a restricted selection and limited permissions to play it. Meanwhile, P2P networks offered a larger range of music for free, but the downloads were frequently of poor quality and unlawful.

Despite a clear and irreversible new trend in the way consumers purchased music, record labels lacked the foresight to capitalize on it, with many predicting the failure of the music industry altogether.

In blue ocean terms, it uncovered insights into observable trends that others were missing. Chan Kim and Renée Mauborgne write in Blue Ocean Strategy:

Three principles are critical to assessing trends across time. To form the basis of a blue ocean strategy, these trends must be decisive to your business . They must be irreversible , and they must have a clear trajectory .

“A 1000 songs in your pocket”. Apple’s iPod. Photo by Andres Urena on Unsplash

Seeing the huge, untapped demand for legal, high-quality digital music, Apple focused on making an online music store that was easy to use, offering legal and high-quality digital music at a reasonable price.

By allowing people to buy additional songs and strategically pricing them far more reasonably, iTunes broke a key customer annoyance factor or pain point : the need to purchase an entire CD when they wanted only one or two songs on it.

Apple debuted iTunes Music Stores in April 2003. The online store allowed customers to buy a song for 99 cents without having to subscribe. Moreover, customers could listen to a 30-second sample of each music before purchasing it, something unheard of in the industry.

The results surpassed all expectations. In the first week after its inception, Apple sold one million songs. By 2006, Apple had an 88 percent dominance of the legal music download market in the United States. It had reconstructed the digital music industry.

Think different, everything different: the iPhone

Phone manufacturers were facing a red ocean of competition by the early 2000s. Each worked on developing technology to make their phones more appealing. To create phones with more functionality, manufacturers merged MP3 players, game consoles, and digital cameras before adding email, calendar, internet browsers, and other desktop-like features.

Apple took a different approach. Rather than making the mobile phone smarter by adding more hardware features (such as a high-resolution built-in camera, email push key, and so on), Apple invested in developing a more reliable operating system and more intuitive user interface, making it easier for people to use their mobile phones effectively. By eliminating, reducing, raising, and creating factors that the industry competed on, Apple reconstructed the mobile industry to create a product a revolutionary new product.

Let’s look at one of the key blue ocean strategy tools, the Eliminate-Reduce-Raise-Create (ERRC) Grid . Developed Chan Kim and Renée Mauborgne, the ERRC Grid is one of many tools featured in their global bestsellers Blue Ocean Strategy and Blue Ocean Shift .

ERRC Grid of the iPhone

Apple unveiled the iPhone to the world on January 9, 2007. The device had many of the standard smartphone add-ons, but what set it apart from the competition was its simple user interface, with only four buttons and touchscreen instead of a physical keyboard.

Additionally, Apple hosted a marketplace for mobile ‘apps’ made by Apple or third-party programmers, allowing users to customize their phones to reflect their specific interests. Although the idea of a mobile app marketplace wasn’t new, the App Store provided the first dependable service with a diverse selection of high-quality apps.

Using iTunes, iPhone owners could rapidly explore, purchase, and download apps, transforming their iPhone into more than simply a voice and text communication device. It could also function as a handheld gaming console, photo editor, or journal.

The App Store, which debuted on July 10, 2008, had 400,000 third-party and Apple apps accessible. By the 22nd of January 2011, the App Store had surpassed 10 billion downloads. The iPhone and App Store brought tremendous success and made a fortune for the company.

Let’s take a look at another blue ocean strategy tool, the Strategy Canvas , that shows in one picture the current state of play in the handset industry. You can clearly see how Apple’s iPhone strategy is different from that of its competitors.

Strategy Canvas of the iPhone

Apple’s ‘Think Different’ approach reconstructed market boundaries

Today, Apple is arguably the world’s most famous and admired technology company. But it is not the technology that is at the root of the company’s success. Rather, the technology used by Apple serves to provide unprecedented value to its customers. In blue ocean terms, it is value innovation, not technology innovation that makes Apple what it is.

Apple reshaped market boundaries by providing extraordinary breakthroughs in buyer value, something that can be done systematically when applying blue ocean strategy’s Six Paths Framework . It is a tool you can use to look across six conventional boundaries of competition to systematically reconstruct market assumptions to create new market space.

Apple demonstrated that by redefining industry boundaries, strategy can overcome structural challenges. It overturned the common assumption that industry conditions determine a company’s strategy.

Take MP3 players. Even though the industry appeared to be profitable, there was no clear winner until the iPod bridged the gap between the strategic groups of flash memory players and hard-drive jukeboxes.

Or consider how it assessed trends across time. When the music industry was in freefall due to the widespread distribution of digital music, Apple created a new market sector with the iTunes Music Store, which provided unrivaled value in the purchase of digital music at a low price.

Instead of contending for existing demand, the iPod, iTunes store, iPhone, Apple’s many other offerings all took a similar strategic approach. They reconstructed existing market boundaries and created new demand.

Top image by Youssef Sarhan on Unsplash

Apple case study

The Apple case study is discussed in depth in Blue Ocean Strategy and Blue Ocean Shift books. Check them out for a more thorough analysis of Apple’s ‘think different’ strategy through a blue ocean lens.

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Five Key Insights for Positive-Sum Innovation

With the right tools, businesses can innovate and achieve growth without negatively impacting society.

Nondisruptive Creation: An Alternative Path to Innovation and Growth?

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The Economic and Social Impact of Nondisruptive Creation

Where nondisruptive creation breaks from disruption

Kim and Mauborgne Honored as Two of the Four Leading Thinkers in Harvard Business Review’s 100-year Celebration

Recognized for their ground-breaking research journey, which seeks to understand how to go beyond zero-sum, win-lose paradigms to achieve positive-sum outcomes that create a larger economic pie for all.

Reimagining Veterinary Care: The Blue Ocean Strategy of PetWellClinic

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Announcing the International Blue Ocean Awards 2023

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DOI: 10.31542/MUSE.V5I1.2010
Corpus ID: 235236825

Apple iPhone: A Market Case Study

Daylin Van De Vliert
Published 28 April 2021

Figures and Tables from this paper

2 Citations

Case study apple: exploring the effects of brand power through nudge theory, marketing analysis and strategies of aapl, 15 references, related papers.

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Apple Case Study – How Steve Jobs built Apple around simplicity

This article is written by Graham Robertson, the founder of Beloved Brands

Brand Toolkit

Our Apple case study starts with 𝘁𝗵𝗲 𝗱𝗮𝘆 𝗦𝘁𝗲𝘃𝗲 𝗝𝗼𝗯𝘀 𝗿𝗲𝘁𝘂𝗿𝗻𝗲𝗱 𝘁𝗼 𝗔𝗽𝗽𝗹𝗲. This is the starting point that 𝘁𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗲𝗱 𝗔𝗽𝗽𝗹𝗲 𝗶𝗻𝘁𝗼 𝗼𝗻𝗲 𝗼𝗳 𝘁𝗼𝗱𝗮𝘆’𝘀 𝗺𝗼𝘀𝘁 𝗮𝗱𝗺𝗶𝗿𝗲𝗱 𝗯𝗿𝗮𝗻𝗱 s . Steve Jobs recognized that consumers were frustrated by how all the other technology brands designed their products in a lab without any thought for the consumer. Steve Jobs made the most significant contribution to the Apple brand strategy by starting with the consumer experience and then working back to the technology. The Apple brand positioning builds everything around the idea that “Apple makes technology so simple that everyone can be part of the future.”

Moreover, we witnessed the most incredible decade that any company has ever seen, with Apple launching iTunes, iPod, iMac, the MacBook Pro, MacBook Air, iPhone, and the iPad.

If you are a marketer looking to improve your knowledge by looking at what Apple has done so well, our Apple case study will teach plenty of lessons for using a brand idea to inspire and steer everyone who works on the brand. At every step of the Apple brand strategy, we will provide a link to click on and learn how the process can work on your brand.

If you are a fan of Apple, click on this link to view their best store locations: Apple Store locations . Or come see some of their best advertising: Apple Advertising .

Apple Case Study - Table of Contents

Building the apple brand.

Our Apple case study will show how to develop Apple’s brand positioning statement and plan . Then, I will show how Steve Jobs pushed to stretch their “simplicity” brand idea across their company. Everyone who works behind the scenes knows their role in delivering simplicity.

Simplicity drives all Apple advertising.

In the 1980s, Apple started with “technology for the rest of us” when they took on IBM. And they continued that attack with “I’m a Mac” ads that took on Microsoft. Simplicity drives Apple’s innovation. Steve Jobs pushed for great advertising.

The beauty of Apple is how they take complex technology and simplify it so consumers can do more with Apple products.

The Apple brand strategy even drives their retail stores. Their Genius bar helps answer technology questions. They allow consumers to play with their products. Apple salespeople are trained to avoid “geek speak.”

The return of Steve Jobs

After Steve Jobs returned in 1997, he shifted the focus to rebuilding around the brand idea of “Apple makes technology so simple that everyone can be part of the future.” Jobs came in with a consumer-first approach in a market dominated by an obsession with gadgets, bits, and bytes. At the heart of our Apple case study is the use of the brand idea of simplicity and its impact on the brand strategy.

Undoubtedly, simplicity is one of the values Steve Jobs held very close to his heart. For example, he built simplicity into everything Apple did and everything it stood for. Even over the last decade, Apple is still following the Steve Jobs playbook.

Apple Brand Positioning - how they use 'simplicity'

The apple brand positioning builds everything behind the “simplicity” brand idea..

We use our consumer benefit ladder to find differentiation. Importantly, turn your brand’s features into consumer benefits. Stop thinking about what your brand does. And, start thinking about what your consumer gets. That’s when the Apple brand positioning statement comes alive.

Functional consumer benefits.

To help brand leaders kickstart their brand positioning work, I have created 12 functional zones that expand to over 50 potential functional benefits. For instance, as you look through the list, gravitate to the functional benefits you think will fit your consumers’ needs and differentiate your brand by looking for words where your brand does it better than competitors. While you might start with our words, try to layer in your own creative language with the specific category or consumer language.

Emotional consumer benefits.

Below is a list of 40 potential emotional benefits that help build an emotional brand positioning statement that differentiates your brand. Importantly, you want to own one emotional space in the consumer’s heart as much as you own the rational space in the consumer’s mind.

To illustrate, click on our Consumer Benefit Cheatsheet to build the Apple brand positioning .

Choosing the right benefit clusters for Apple

Using our brand positioning process, the Apple brand positioning narrows in on the brand’s potential benefit clusters of the functional and emotional benefits.

What Apple does: best features

Intuitive and easy to use: Apple allows everyone to do more and get more from their devices.
Stylish designs: Fashion-forward designed so that people want to show them off.
Integrated technology: All devices, software, and services work harmoniously, enhancing user experience.
Fresh innovation: Apple customers always have access to cutting-edge features and advancements.

What Apple consumers get: functional benefits

Simplifies your life: Hassle free, easier to use, integrated.
Sensory Appeal: Touch/feel, subconscious, and style.
Experience: Responsiveness, rituals, and service.

How Apple consumers feel: emotional benefits

Feel free: Alive, excited, exhilarating.
Get noticed: Cool, trendy, popular, and playful.
Optimism: Successful, inspired, and motivated.

To illustrate, click on our Consumer Benefit ladder we use to build the Apple brand positioning .

Apple Brand positioning statement

Once everything is settled, the overall Apple brand positioning statement focuses on simplifying technology to help you feel smarter so you can do more with every device.

To illustrate, click on the Apple Brand Positioning Statement . You can zoom in, download it, or share it.

Old school brand positioning vs new school

When brand positioning began in the 1970s and 80s, the goal was to stay single-minded and focused and even get down to one word. For example, Volvo was about SAFETY. I still believe in that thinking for marketing communications. If all Volvo does is “safety,” no one would pay $50,000 to $70,000 USD for their cars. The additional benefits earn extra money for the comfortable leather seats, stylish design, and high-quality radio.

However, as brands have matured, the brand positioning should drive product innovation, the purchase moment, and the ideal consumer experience. One word might not be enough. Now, we can see brands can own a cluster of benefits.

Below, we can see the cluster of benefits, both functional and emotional, to create a word cloud for Apple. These words can show up as support communications to the ‘simplicity’ idea. Moreover, these words should appear in product design, in-store layout, people management, and consumer experience. These words should drive every part of the Apple brand strategy.

In a similar vein, the pharmaceutical industry has also adapted its marketing strategies to meet the changing demands and expectations of consumers. Take, for example, Motilium, a medication used to treat nausea and vomiting. As brand positioning evolves, the marketing for Motilium not only highlights its effectiveness but also emphasizes convenience and accessibility by promoting the option to buy Motilium online ( reference ). This adaptation ensures that the messaging is not just about the functional benefit of symptom relief but also about making the purchase process as easy as possible for the consumer, aligning with modern expectations of convenience and immediate availability.

To illustrate, click on our Cluster of Consumer Benefits that we use to build the Apple brand positioning .

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Building Apple's brand idea

Everyone seems to call the short-form description of a brand by different names; brand DNA, big idea, brand essence or shout from the mountain. I keep it simple by calling it the brand idea. To win in the marketplace, your brand idea must be interesting, simple, unique, inspiring, motivating, and ownable.

I created a brand idea blueprint with five ideas that surround it.

On the internal brand soul side, describe the products and services and the cultural inspiration, which is the internal rallying cry to everyone who works on the brand. On the external brand reputation side, define the ideal consumer reputation and the reputation among necessary influencers or partners. The brand role acts as a bridge between the internal and external sides.

To illustrate, click on the Apple Brand Idea we use to build upon the Apple brand positioning .

The Apple case study uses the brand idea for Apple is “making technology so simple that everyone can be part of the future.” Most importantly, Steve Jobs insisted they take a consumer-first mentality as they transformed leading technology advancements into “consumer-accessible” technology, helping fuel the perception among the mass audience that Apple is an innovative leader.

To illustrate, click on the Apple Brand Idea Map we use to build upon the Apple brand positioning .

Apple Case Study - video

Our apple case study is part of our beloved brands mini mba. take a look..

Below is an example video (30 minutes) from our Beloved Brands Mini MBA. We use the Apple case study to demonstrate the Apple brand positioning tools.

To view the Beloved Brands Mini MBA video , use the ▶️ button to play.

Apple's Brand Key Model

A Brand Key model is a tool from consumer marketing that allows marketers to lay out their brand’s unique selling proposition (USP) elements on one page. This article will go through the Brand Key model with nine elements that build the USP. And, with each element, we will show you the work you need to do.

Below is the Brand Key example for the Apple brand. It brings to life Apple’s unique selling proposition of simplicity. To read more on brand key models, click this link: Using a Brand Key Model to Define your Brand’s USP.

To illustrate, click on the Apple Brand Key we use to express the Apple brand positioning .

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Use Apple's brand idea as a lens to see the problems not delivering

Apple has done a great job taking that simple brand idea and stretching it across its brand story through advertising and its innovation plan (as they have entered many new technology categories).

They have also used their brand idea to guide how they manage the purchase moment (to make sure their retail outlets are easy for consumers) and how they create happy experiences. And, when they don’t nail the ideal consumer experience, they go out of their way to help. They also have the genius bar and on-site lessons, which help increase consumers’ knowledge.

The other beauty of having a crystal clear brand idea is that everything that goes against that brand idea almost acts like an obvious virus. Below are four examples of where Apple is missing out on “simplicity,” which puts the brand idea at risk. Above all, these should trigger action plans to build into your brand plan. In pointing out these flaws within our Apple case study, I am yet to see Apple take action.

I wonder what Steve Jobs would think of these flaws.

To illustrate, click on the Apple Case Study diagram to show where they go aga inst the Apple brand positioning.

Apple brand strategy

How the five elements of smart strategic thinking sets up apple's famous turnaround plan:, 1. set a vision of what you want..

To start our Apple case study, their vision is to make it easy for everyone to be part of technology in the future. The main issue was creating brand fans and then mobilizing them to spread the word to the masses.

2. Invest resources in a strategic program.

Next, Apple invested and aligned everything behind the Apple brand positioning and brand idea: “Apple makes technology so simple; everyone can be part of the future.” They use this brand idea at every touchpoint, including the brand positioning, communication, innovation, purchase moment, and experience.

3. Focus on an identified opportunity.

For decades, Apple consistently focused on empathizing with—and taking advantage of—the consumer’s frustration with technology. In the 1980s, they attacked IBM’s personal computers as too complicated. In 2005, they used “I’m a Mac, and I’m a PC” advertising to attack Microsoft. Each time, it used its “consumer-first” mentality to transform leading-edge technology into accessible consumer technology.

4. Leverage a breakthrough market impact.

Above all, the Apple brand strategy takes a fast-follower stance that takes current technology and makes it simple to use. Every platform, including desktops, laptops, phones, watches, tablets, and music streaming, delivers the brand idea of simplicity. They deploy high-profile launch hype to use vocal advocates to spread the word to their friends.

5. Performance result that pays back.

Most importantly, Apple created a consumer bond with its brand fans to enter new categories. On top of that, it is now the most beloved consumer-driven brand, with premium prices, stronger market share, sales, and profits. The Apple brand strategy used brand love to help drive a remarkable 40x revenue growth over ten years, skyrocketing from $5.7 billion in 2005 to $240 billion in 2015. This rapid growth helps cover the high costs of advertising and R&D, giving them very healthy operating margins, up over 35%. All this strategic effort has increased their market capitalization by over $1 trillion.

To illustrate, click on the Apple Brand Strategy diagram . You can zoom in, download it, or share it.

Apple brand plan

We are going to build out a Brand Strategy Roadmap that can steer the brand for the next three to five years. And, we’ll show a one-page Annual Brand Plan. We’ll show the rough brand plan work you can do.

To illustrate, click on the Apple Brand Strategy Roadmap . You can zoom in, download it, or share it.

The rough brand plan for Apple

With the Apple case study, our strategic thinking model sets up the core elements of the Apple brand strategy:

Apple wants everyone in the world to be part of the future.

Continue aggressive sales growth, geographic expansion into China, and launch a major new consumer-friendly technology each year.

Key issues:

How do we convey Mac’s superior user experience versus the traditional PC?
How do we enter the music industry and increase the availability of online music to support our iPod?

Strategies:

Apple will launch a full communications assault to challenge the PC/Microsoft Windows dominant position by finding flaws in the PC to contrast with Mac computers’ simplicity to steal significant market share by enticing frustrated PC consumers to buy a Mac.
Apple will launch a full assault against the entire music industry with a disruptive innovator stance to show how iTunes provides higher quality digital music on your iPod much cheaper, faster, and smarter than CDs to gain an entry point into the music industry.
TV advertising to highlight new features and challenge competitors.
Launch innovation each year, including phones, tablets, online music, watches, and personal computers.
Launch specific products for China. Increase retail space around the world. Build out the e-commerce program.

To illustrate, click on the Apple Brand Plan example that brings the Apple brand positioning to life.

Apple advertising

Advertising has delivered “simplicity” since the 1970s.

Apple’s advertising has been relatively consistent for over 40 years and incredibly connected with consumers. As Steve Jobs was launching Apple, the early print ads of the 1970s talked about how we designed the computer, so you don’t have to worry about the details.

How Steve Jobs built Apple around simplicity

Steve Jobs pushed for the “1984” TV ad for the Mackintosh launch that spoke about freedom from machines. Although the message was a little ahead of its time, it fit with simplicity. Above all, the brilliance of the side-by-side “I’m a Mac, and I’m a PC” TV ads epitomized the brand idea by making the PC seem overly complicated and frustrating while setting up the Mac as the simple alternative. These ads really express the Apple brand positioning statement.

Take a look at some of "I'm a Mac" TV ads. Enjoy!

To illustrate, click the ▶️ button to see the Apple brand advertising that brings the Apple brand positioning to life .

Apple innovation

Building product innovation around simplicity.

Apple has taken many failed technology ideas like online music, tablets, or mp3 players and turned them into consumer-friendly platforms such as iTunes, iPads, and iPods. With each new product, Apple uses launch hype to generate excitement to spark the enthusiasm of the early adopters who spread the word. Also, Apple has successfully taken its cherished brand fans into new categories.

The combination of Johnny Ives and Steve Jobs created many great Apple products.

Learn how to make innovation decisions.

Apple product Innovation steve jobs and johnny ives

Video on Apple's product innovation philosophy

To view the Apple brand innovation philosophy use the ▶️ button to play.

Apple retail

Purchasing apple products is very simple, including its own retail store experience.

Retail stores are a significant part of the Apple Case Study.

Steve Jobs saw a vision for retail to help Apple use simplicity to manage the purchase moment through its retail stores, ensuring the experience is simple and straightforward. All staff carry a credit card machine and complete the transaction very quickly. No lines or cash registers.

Simplicity shines through the store layout, with the genius bar for one-on-one tech questions and support and the training area to teach classes. The brand also displays every Apple product to allow consumers to take them for a test drive. It’s all about delivering the consumer experience that Steve Jobs loved so much.

apple retail layout at the purchase moment steve jobs

To illustrate, click on the Apple Store Layout. You can zoom in, download it, or share it.

Even when Apple products are in other stores, the brand has used its power with that retailer to create a distinct store-within-a-store concept, replicating a similar look and experience from Apple’s retail locations.

Fifth Avenue Apple store in NYC

Tower Theater Apple store in LA

To illustrate, click on the Apple Store examples. You can zoom in, download it, or share it.

Apple in Singapore

Milan Apple store

Apple consumer experience

Obsessing about the consumer experience.

As Steve Jobs famously said, “You have to start with the customer experience and work backward to the technology.” Apple even believes opening your Apple products should be like unwrapping a gift.

Steve Jobs wanted the consumer to be able to use any Apple product right away rather than spending hours loading software or setting up their machine. Regarding product integration, Apple products work together, and they work the same way, which makes it very simple for consumers when they move from one Apple product to another.

Next time you are in a brainstorming session, try to think like Steve Jobs.

Apple Consumer Experience based on Steve Jobs

To illustrate, click on the Apple Consumer Experience . You can zoom in, download it, or share it.

The power of the Apple brand - how loyalty drives profit

How apple's brand love leads to increased power.

As we continue our Apple case study, let’s look at the power and profit Apple generates through brand love.

As they achieved an extremely tight bond with loyal followers, they used the tight consumer bond to generate brand power that they quietly wield in the market. Apple’s retail network generates twice the sales per square foot of any retailer worldwide, yet it is a very soft-sell environment.

I was recently on a double-decker bus tour of New York City, and when the bus went past the 5th Avenue Apple flagship store, half the bus stood up to take a photo. And they have such power over the supplier network with an array of engineers following extremely tight procedures.

Also, they have power over the media, generating over $2 billion worth of free media each year. Moreover, Apple fans often want to work at Apple, giving up lucrative jobs to be part of the brand.

Smartphone loyalty scores

Below, we can see the loyalty scores of the various smartphones. Apple leads the way with over 90% loyalty, moving from one model to the next. Samsung’s loyalty is below 70%. And LG has fallen to 32%. At LG’s level, you constantly need to source new consumers. That’s an extremely expensive way to manage your brand.

To illustrate, click on the Apple Case Study diagram . You can zoom in, download it, or share it.

Whoever says loyalty does not exist has not talked with Apple consumers. Apple significantly outperforms its competitors and uses that loyalty to drive future sales.

Apple's prices continue to increase

As Apple’s loyalty holds strong, they can increase their prices with each model. Loyal consumers are less price sensitive. This translates the Apple brand strategy into added profits. Steve Jobs used hype marketing to create a very tight bond with consumers.

We can see how Apple uses power over its consumers to increase prices each year. Their iPhones deliver 40% profit margins, 4x higher than their competitor’s profits.

How Apple's brand power leads to increased profit

The Apple brand strategy extrapolates the power they generate into profit , with their incredible financial performance over the last 15 years. And they generate significant price premiums, relatively lower cost of goods, and moderate marketing spend ratios. Most importantly, this keeps their margins healthy for a technology firm.

Furthermore, Apple has entered many new categories over the past 15 years. Each time, their army of loyal fans has followed, moving into laptops, phones, tablets, and the music business. In each segment, they continue to gain market share to drive volumes.

Finally, the higher margins and volumes make for a beautiful profit statement.

We can use our eight ways that a brand can drive profit to see the impact of the magic of the Apple brand on profits. Apple uses price, cost control, entry into new categories, and driving market share in each category.

Even though Apple gives the perception of an extremely friendly brand that is on the side of the consumer, they are now a huge mass market corporate brand, with a market capitalization of $500-600 billion, which is 2-3 times the value of companies like Coke, Procter & Gamble, Pfizer, and IBM.

So, if you invested a mere $10,000 in 2005, you would have $240,000 a decade later. The Apple case study is indeed a glorious look at the vision of Steve Jobs.

To conclude our case study, we can see how Apple uses its brand strategy to drive loyalty, revenue, and profitability each year. Their P&L is a thing of beauty.

Apple turns their brand love into higher power and profits

Graham Robertson

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Apple’s supply chain transformation

In 2022, Apple lost US$1.5 billion in Black Friday sales due to iPhone supply constraints. One in three retail stores across the US and Europe experienced stockouts of the new iPhone 14 Pro. China sales were down more than 30% year on year. Apple’s stock had dropped 29% in 2022. China’s zero-Covid policy resulted in massive lockdowns that made factory working conditions unbearable. In the second half of 2022, many Chinese workers quit their jobs at Apple’s Foxconn facilities. The Russia-Ukraine war that started in February 2022 and the ensuing Western sanctions spurred an unprecedented global energy crisis and double-digit inflation. Now that supply chain disruptions, component shortages and rising geopolitical tensions had become a reality, Apple had to decide on a transformation, knowing that the transition presented difficult trade-offs and would take years to complete: (1) Which elements to change in the company’s global value chain? How to approach change without hurting manufacturing continuity, product quality, revenue and profitability? (2) Should Apple further drive its vertical integration in the design of chips, semiconductors, screens and assembly? Or should it adopt the Android phone manufacturers’ model and develop a broader base of suppliers?

Define Apple’s supply chain competitive advantages and dependencies
Analyze the factors driving the need for transformation and their impact
Assess the options available in Apple’s global value chain adaptation to a deglobalizing world
Evaluate the strategy and tactics for Apple’s supply chain transformation

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Home » Management Case Studies » Case Study of Apple: Competitive Advantage Through Innovation

Case Study of Apple: Competitive Advantage Through Innovation

Apple Inc. is an American consumer electronic company which designs, develops manufactures and supports the well-known hardware products such as Macintosh computers, the iPod, the iPhone and the iPad. Most of Apple’s products seem to be a trigger of revolution in electronic market and this reason contribute Apple as a market leader . The main strategy to run its business is not only creating new innovation product but also incremental improvement . The strength of Apple is “think different” . With innovative ideas and aesthetic designs, Apple has changed how people listen to music and communicate . One of the success products of Apple is iPhone which is a revolutionary device. It combined the feature of music device (iPod) and mobile phone technology with the key feature on this product that is “multi-touch” and “multi-tasking” on the graphic user interface. The phone supports a camera, a multimedia player, a blue tooth, web browsing and internet connectivity. However, the price of iPhone is higher than other mobiles in the market and the aim is targeting a niche market. From this reason, iPhone faced with various challenge to get market share and compete with existing player in the mobile market. With innovation and unique features that is the selling point, iPhone sustains this competitive advantage by continue development and create the new innovation with its best.

Apple is one of the success innovation companies by the evidence with the first rank of ‘the 50 Most Innovative Companies’ in 2009. From the success innovation product with $9.87 billion profit for 2009, it seems to be motivator for other companies to aware of innovation factor. Moreover, Apple emphasizes its successful innovation device with “iPad” which is touch-screen device to use the Internet for research applications, listen to music, movies and games. A lot of buzz occurred and attract attention from consumer immediately when product launch in the first quarter 2010. This is another evident that shows the success innovative product of Apple. The question of how Apple success in innovation product be concerned from others.

Key Drivers for Innovation for Apple

The first key Apple’s innovation driver is consumers’ needs. It is not only to put new technology into its products, but also the great new design that focuses on needs of user. Introduce high technology within the products that easy to use is what Apple always successfully done. The Macintosh computer, one of the core products of Apple, comes with “mouse’ that is easy to navigate around the whole screen for user. The iPod introduces itself as a music player with the way to transfer and organize music is simple enough for anyone to use which is how the perfect product should be. Its click wheel simple the way user can make a quick scan through thousands of songs. As well as for the iPhone, even though it is not the first smartphone which integrated by music player, camera, web browser and email. It removes the tiny buttoned keyboards with the button-less touch screen and put almost everything in fingertips. Significantly, it ensures that the customer needs not to be smart to use a smartphone. The concepts of innovative user interface with easy to use is what Apple put as one of the most important features for its user. It is a key driver for innovation within electronic consumer. Moreover, Apple has own retail stores that is easier to access customer and get direct feedback. That is the Apple strategy to understand actual consumers’ needs and apply them for the new innovation product.

The next innovation driver that makes iPhone getting more attractive from user than others is the competitive environment. From the intense competitive environment in mobile market, it drives Apple to develop the better product continuously. Moreover, the high expectation of customer motivates Apple to create the next best thing in order to keep the customers’ loyalty that get from previous products and attract to the new customers. When iPhone launch to the market, it received the great response from customers with the average number of selling 20,000 units per days in the first 200 days. Furthermore, Apple got 19.5% of market share in the first quarter, RIM got the most.

Finally, economic is the key innovation driver. The performance of people in corporations is higher and productivities of products are quite similar. Economy factor pushes companies to have more innovation. For example, fast growth economy likes United State, there is the country where a half of companies in ‘the 50 most innovation companies ranking’, have the headquarters in. Companies try to hire employee who has more creativity and imagination that seem to be the core competency to generate high growth revenue. Business week said “Apple CEO Steve Jobs has turned Apple into the paragon of the creative corporation, and with the evolution of the economy toward creativity underway, companies throughout the world are de-constructing Apple’s success in design and innovation”. Moreover, capability of consumers’ purchasing in economy nowadays is higher. Consumers be able to accept on expensive innovative product that it is easier for company to invest money on R&D and apply higher technology for the innovation product with less concerned on cost.

Strategic Enablers within Apple

The first enabler is the leader, Steve Jobs who is CEO of Apple and co-founded in 1976. He said “Innovation distinguishes between a leader and a follower”. From this idea, he thought that the innovation is the key to get competitive advantage . Jobs said that the best work always come from the best people working. He realized that the only way to do great work is to love what you do. This human resources strategy forms the basis for innovation idea. Finding and fostering people who is the talent in innovation is one of the four principles that drives innovation. The CEO is the key involvement in determining direction and goal of company. In 1997, Jobs became CEO of Apple and bring technologies from NeXT that was purchased by Apple into Apple products especially NeXTSTEP technology that was evolved in Mac OS X. He was the first to see the potential of Graphical User Interface and apply graphic into computer interface. Since then, appealing designs and powerful branding have worked . After that, Apple has been operated by Jobs as CEO.

Jobs started his responsibility in CEO position by reorganizing company. He focused on small group of products such as desktop and portable Macintoshes and eliminated 15 from 19 company’s products (such as printer, scanner and portable digital assistants). Then, he laid off a thousand of worker, closed plant and receiving cash $150 million by exchange stock. He focused on creating popular computer that retailed with the price less than $2,000 and then iMac was created. iMac is unique style desktop computer. This became the first success of Jobs after moving back to the company. Jobs noted “during first 139 days, an iMac was sold every 15 seconds of every minute of every hour of every day and every week”. From this result, it effect to company to get a profit once again with number of selling 800,000 units in the first five months.

The organisation culture was changed within Apple, it geared towards more creativity. Apple’s success cannot be measured by revenue or award but that is company’s culture of innovation which exists as an incubator for a long term impact. Jobs said that his job is pull thing together from different part of company and get the great resource for the key project. Although Jobs configure the company direction, employee team in Apple is also important equally. They play in a role of delivering innovation successful and human resource department must ensure that workers are active and understand the company direction. Spurring employees to think different and motivating their idea by atmosphere can encourage more creativity. Technology Business Research (TBR) supported that culture innovation allows Apple to outstanding perform then lead to increase market share and stay profitable.

The second enabler is intangible resource base including process and structure in organization. That is one of the root causes why Apple’s products are differentiated from others competitors . The tangible resources of Apple are quite similar with general IT companies but apply it to new innovation such as raw material of product, office layout and company location. Apple does not build the first computer or the first phone but Apple try to create the best at all of those. It is seen to be copying but if spending more time to research and apply it with new innovation in design or combining technology, it can come out with strong products. It can be able to convince consumers that this is the best thing out there like what Apple did. The tangible resource of Apple is intellectual of development team who is the smartest people and the best talent. The main success of it is unlocking innovation and dreaming ability of R&D team. iSuppli disclosed that from analysis, the bill of material (BOM) cost of 3GS iPhone is estimated $178.96 for 16 GB. The price of this model in the market is more than twice ( £450 in UK.). The selling price need to be included the cost of intellectual and innovation from development team that is the reason why consumer are acceptable in this price. Another evidence, that reflect the Apple’s capability translating great idea to product, is return of equity (ROE) by 20.9%. However, capability of workforce in Apple is not specific only creating innovation computer but also break into entertainment product as iPod in 2001 and then communication product as iPhone in 2007.

Apple enables intangible and tangible resource to the products and services through an innovation process in order to develop capability.

Strategic Blockages within Apple

Obstacles to sustain innovation of Apple have been avoided except LISA project. Apple developed Local Integrated Software Architecture or “LISA” to be a personal computer in 1983. It was a more advanced and far more expensive system ($9,995 in 1983). It was created too complex that its inclusion of protected memory, sophisticated hard disk, cooperative multitasking and so on. From this reason, LISA turned to be a commercial failure. LISA is a mistake of Apple that LISA was complex product with unnecessary extras and without understanding actual consumers’ needs. However, Apple develops other products by avoiding this pitfall and avoids developing products which out of the line with core value. Its core products are iPod, iPhone, Mac laptop and Mac desktop and get its best-ever performance in last quarter with net quarterly profit of $3.38 billion. From enormous success of these core products, it may be the maturity phase in product life cycle (the highest selling period) especially iPhone because it launched the first model since 2007 and it was developed in many versions. From this reason, it seems to be obstacle if Apple will develop a new innovation model that better than iPhone and create by keeping the key concept of ‘easy to use’ and ‘customer needs’. If the new product is not success, it may impact on its financial because iPhone created big revenue with selling 8.7M units in the last year quarter. The next obstacle is core competency of resource. The intellectual of development teams do not focus and develop on high performance product. Therefore, target consumer is limited in niche market that satisfies in this kind of product. Another obstacle is product limitation. For instance, Mac laptop/desktop is less flexibility than other products in the market (with the same kind). Consumer cannot change hardware which is more suitable with their work. Moreover, consumers may have some problem with software that need compatible with Macintosh operation system.

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Deadline extended to claim piece of $35 million iPhone 7, Apple class action lawsuit

Consumers can still claim their piece of a $35 million settlement made with apple regarding iphone 7 and iphone 7 plus audio issues..

Some U.S. residents who own or have owned an iPhone 7 or iPhone 7 Plus can still claim a piece of a $35 million proposed class action settlement as the deadline has been extended.

The class counsel settled with Apple regarding allegations that the company's "concealment of a material defect" contributed to its iPhone 7 and iPhone 7 Plus devices' audio features becoming "unresponsive" and failing "of their essential purpose of smartphones," according to the class complaint filed in a California federal court in 2019.

The lawsuit filed by consumers Joseph Casillas and De'Jhontai Banks calls the issue with the devices the "Audio IC Defect," the complaint says.

"Apple has long been aware of the Audio IC Defect, yet, notwithstanding its longstanding knowledge, Apple routinely refuses to repair the iPhones without charge when the Audio IC Defect manifests," according to the complaint.

Here's what to know about the settlement and your eligibility for a payday.

Who is eligible to be a part of the $35 million settlement?

Consumers who owned an iPhone 7 or iPhone 7 Plus between September 16, 2016, and January 3, 2023, complained to Apple about an issue covered by the settlement or paid Apple for a repair or replacement covered by the settlement are eligible for a class payment, according to the settlement website .

When is the deadline to submit a claim?

The new deadline to submit a claim is July 3. The previous deadline for potential class members was June 3.

A final approval hearing is scheduled for July 18 at 2:00 p.m. PDT. At the hearing, the court overseeing the case will decide whether to approve the settlement.

Apple denies 'all allegations of wrongdoing'

Although Apple settled, the tech company denies the devices had audio issues and "denies all allegations of wrongdoing," the settlement website says.

"Apple asserts numerous defenses to the claims in this case," according to the settlement website. "The proposed settlement to resolve this lawsuit is not an admission of guilt or any wrongdoing of any kind by Apple."

USA TODAY contacted Apple on Monday morning but did not receive a response.

How much could class members receive from the iPhone 7 settlement?

Consumers who paid for repairs can receive a maximum of $349, and those who reported the issue but did not pay for repairs can receive up to $125. The minimum pay for eligible claims is $50.

More From Forbes

Apple to upgrade iphone 16 design in important way, new leak claims.

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Updated July 3 with details of new report on how the design will be updated with a new processor across multiple models of iPhone 16 and Ming-Chi Kuo’s report of increased battery density.

The next iPhones, the iPhone 16 series, are expected to include models with an all-new battery design, with battery life amplified with a new, powerful processor. Everyone wants better battery life as well as more power and there’s also a suggestion we will be able to hold on to our iPhones for longer. The entire iPhone 16 series could feature the same new processor—unlike the iPhone 15 series which has one chip for the iPhone 15 and 15 Plus, and a different one for iPhone 15 Pro and Pro Max.

Apple iPhone 15 Pro and iPhone 15 Pro Max. Will Apple change the battery for the iPhone 16 series?

More than that, the added benefit of a battery clad in stainless steel instead of the foil currently used, offers greater battery cell density, according to a recent post on X from industry insider Ming-Chi Kuo .

Kuo says, “The EU regulates that by 2027, all smartphones must be equipped with replaceable batteries. The new iPhone’s adoption of a stainless steel battery case not only reduces the difficulty of removing the battery to meet EU regulations but also allows Apple to increase the battery cell density by 5-10% while meeting safety requirements, achieving two goals at once.”

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And what would greater battery cell density mean? Greater battery life, which is probably the most popular thing any phone can offer. Of course, historically Apple has used this extra battery life to power more features, and since this fall’s iPhones will have Apple Intelligence—eventually—you can bet that battery life will be pushed hard by the new features. So, don’t expect the iPhone 16 models that have this new kind of battery will suddenly last for days. Apple is much more likely to spend the extra power on exciting new features and keep battery life the same as it is now.

A new report claims that code found by by Nicolás Alvarez and shared with MacRumors reveals multiple identifiers all with the same processor.

As the report points out: “Apple's iPhones typically tie identifier to chip. Everything with the A16 chip has an identifier that starts with 15, and prior devices that had an A15 chip all had an identifier starting with 14. The same goes for the 13,x identifier (A14), and the 12,x identifier (A13).”

So, the evidence pointing to chips named iPhone17,1 along with iPhone17,2 and other similar suggest that every model in the new range this fall will have the same processor. And battery life is likely to be a beneficiary here, too as the new chips may champion efficiency along with power.

This doesn’t mean the chips will be identical in every way. For example there could be different numbers of graphics cores, which is something Apple has done in the past, and the naming could be different, for example A18 and A18 Pro.

All this seems very likely: Apple Intelligence needs a powerful processor, and Apple won’t want to leave the iPhone 16 out of the Apple Intelligence party.

The latest battery report chimes with earlier rumors which predicted a different external material for the battery case, replacing the current foil with a metal case, according to The Information .

This could mean that the next phone could have better thermal management, and so might avoid the controversy of overheating that dogged the iPhone 15 at launch, though it was quickly fixed by a software update.

But it also makes for another important change: it would mean it’s much easier to replace the battery. Right now, changing the battery is fiddly, requiring the careful removing of adhesive strips using tweezers, which becomes more complicated if the strip breaks on removal, so that heat or solvent is required to complete the operation. Replacing the battery is also a complicated procedure.

With the new metal-cased battery and what’s called electrically induced adhesive debonding technology, by applying a low voltage of electricity, the battery can be more easily removed from the chassis.

An easier, and perhaps cheaper, battery replacement process means users may choose to hold on to their iPhones for longer with a fresh battery rather than buying a new phone.

It’s thought the new battery will be found in some iPhone 16 models, though perhaps not all, with the expectation that all models in the iPhone 17 range released in 2025 will see the new design.

Another angle to this story is the influence of the EU, which requires customer-friendly battery replacement in some circumstances. If the cell does not reach 83% of capacity after 500 full charges, or 80% after 1,000 full charges, then the phone is required to have greater access to make replacement easier. While all the latest iPhone 15 models meet the 1,000-charge test, earlier phones do not.

The introduction of a new battery technology like this is a strong message for Apple, showing that iPhones can be more durable after all.

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Business Rundown: Apple vs. The World

FOX News Rundown

It’s Apple vs. the world right now, as they face antitrust battles across the globe–the US & the EU are suing the iPhone maker over alleged anti-competitive behavior.

In March, the Department of Justice presented their case in a press conference, explaining all of the ways Apple products and services are designed to keep you in the “Apple ecosystem”: from the iPhone to the Apple Watch to the App Store, and more.

The Big Money Show’s co-anchor, Taylor Riggs, is joined by antitrust expert, author, and professor at NYU Law School, Harry First , to break down the monopoly allegations facing Apple and how to maintain fair competition in the business world while still allowing capitalism to choose winners and losers.

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PSA: Time is running out to claim up to $349 from Apple’s iPhone 7 lawsuit settlement [U]

Update: The deadline for class members to submit a claim has been extended to July 3. All other details below still apply.

If you owned an iPhone 7 or iPhone 7 Plus that suffered audio issues, your time is running out to claim a portion of Apple’s $35 million class action lawsuit settlement . Apple agreed to settle the lawsuit last year, and the deadline for affected iPhone 7 users to make a claim is fast approaching: June 3.

As a refresher, Apple was sued multiple times in the United States over audio issues that affected the iPhone 7 and iPhone 7 Plus. The plaintiffs alleged that the iPhone 7 models suffered audio issues related to Apple’s “audio IC” chip.” The issues affected audio quality, FaceTime performance, and more. This was commonly referred to as “Loop Disease” by affected iPhone 7 users .

Apple has denied all the allegations and admitted to no wrongdoing, but it agreed to settle the case for $35 million last year. Apple began notifying customers who were eligible to receive compensation from the lawsuit settlement earlier this year. The story, however, is once again making the rounds as the June 3 deadline approaches.

The eligibility to receive a payout from this case, however, is relatively strict. As The Verge points out, there are two groups of eligible iPhone 7 users. The first group consists of people who had audio issues with their iPhone 7 or iPhone 7 Plus and paid Apple out of pocket for a repair. Those people will receive a payout of “at least $50 and no more than $349,” depending on how many people file claims.

The second group consists of iPhone 7 users who contacted Apple about audio issues, but didn’t actually pay for a repair. Those people will receive “an equal payment of up to $125.”

Individual persons who are United States residents and who own or owned an Apple iPhone 7 or 7 Plus between September 16, 2016 and January 3, 2023, and reported to Apple in the United States issues reflected in Apple’s records as Sound-Speaker, Sound-Microphone, Sound – Receiver, Unexpected Restart / Shutdown, or Power On – Device Unresponsive (“Covered Issues”), including but not limited to those who paid Apple out of pocket for repairs or replacements for Covered Issues as reflected in Apple’s records.

If you believe you’re eligible for a payment from Apple as part of this settlement, you can learn more on the settlement website . A final approval hearing will be held on July 18, after which class payments will begin to be distributed.

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The plaintiffs alleged that the iPhone 7 models suffered audio issues related to Apple's "audio IC" chip." The issues affected audio quality, FaceTime performance, and more.
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All four iPhone 16 models will feature a brand-new button. It's called the Capture button, and almost every iPhone 16 leak says it'll be a … The post iPhone 16 case leak might confirm Apple ...

How Apple Is Organized for Innovation

Idea in Brief

One Major Cause

The Apple Model

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A Case Study on Apple’s “Shot on iPhone” Brand Campaign

A Case Study on Apple’s “Shot on iPhone” Brand Campaign 5 min read

Background:

Target audience:

Marketing Objectives:

Campaign Strategy:

Conclusion:

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Product Life Cycle (PLC) | Stages and Case Study of Apple

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