Apple is known for innovative products like the iPhone, iPad, and Mac computers. They follow an interactive innovation model that considers technology possibilities, market demands, and what customers desire. Under CEO Steve Jobs, Apple prioritized innovation through idea sourcing, design thinking, and a focus on the customer experience. Looking ahead, current CEO Tim Cook plans new products like an Apple smartwatch and TV while maintaining Apple's position as a leading innovator.

1. Strategic Marketing for Sustainability (SMS)
June 2014 Examination
Post Graduate Diploma in Marketing
Sri Lanka Institute of Marketing
Assignment
Topic
“Apple”
Student Name
K.N. Jayamuni
Reg. No.
0000019076

2. TABLE OF CONTENT
Assignment Marking Scheme
Table of Content
1. Executive summary 1
2. Introduction 2-5
2.1. Apple’s product line
3. Apple’s corporate identity 6-7
4. Apple’s innovation strategies 8-11
4.1. Definition of innovation
4.1.1. Types of innovation and practicing in Apple
5. Strategy & Leadership 12-13
5.1. Idea sourcing & Design of Innovation
5.2. Interactive model of innovation
6. Future of Apple 14-16
6.1. Present Leadership
6.2. Future plans
6.3. Innovation management process for Apple products
6.4. Development and experimentation
7. Conclusion 17
References 18

3. 1. Executive Summary
Apple Inc., has captured the world’s number one brand position in 2012 by bring
down the Coca-Cola to number two and they were able to keep their position even in
2013.
Apple Inc., is the most popular innovator in the ICT industry, it has founded by Steve
Jobs, Steve Wozniak and Ronald Wayne on April 1, 1976 to develop and sell personal
computers. They have introduced a most innovative, attractive product line to the world
and its innovation process comes from every employees in the company and also they
are trying to getting idea from outside also.
The human life style is more complicated and sophisticate than before, it is easier to
plant those kind of new desires on people’s mind. Therefore Apple has identify that
situations also. They implement many technological items to the market. They change
the mobile phone market, tablet market, musical player market.
However, Apple does not just build beautiful products, they also build beautiful
business models that capture value beyond the product. Value is created with products
like the iPod and iPhone but also through iTunes and the App Store. Neither product
would be as beneficial to the consumer without the other. Therefore they could be the
most valuable brand in the world.

4. 2. Introduction
Apple Inc., is an American multinational corporation headquartered in Cupertino,
California. They design, develop and sell consumer electronics, computer software and
personal computers and Apple has innovated iPod, iPhone, iPad to world. Its consumer
software includes the OS X and iOS operating systems, the iTunes media browser, the
Safari web browser, and the iLife and iWork creativity and productivity suites.
Apple was founded by Steve Jobs, Steve Wozniak and Ronald Wayne on April 1,
1976 to develop and sell personal computers. It was incorporated as Apple Computer,
Inc. on January 3, 1977, and was renamed as Apple Inc., on January 9, 2007 to reflect
its shifted focus towards consumer electronics. In the recent years Apple has touched
and changed our lives to a smart digital electronic world than can be imagine by making
new statement in the technological industry.
According to the Interbrand; Apple has got the No.01 position from No.08 position
in just three years by pushing down 2012 most valuable brand, Coca-Cola to No.03
position. The most significant factor is the Coca-Cola was the No.01 position for last
13 years.
Rank 2011 2012 2013
Brand
Name
Brand
Value ($m)
Brand Name Brand
Value ($m)
Brand Name Brand
Value ($m)
1 Coca-Cola 71,861 Coca-Cola 77,839 Apple 98,316
2 IBM 69,905 Apple 76,568 Google 93,291
3 Microsoft 59,087 IBM 75,532 Coca-Cola 79,213
4 Google 55,317 Google 69,726 IBM 78,808
5 GE 42,808 Microsoft 57,853 Microsoft 59,546
6 McDonald's 35,593 GE 43,682 GE 46,947
7 Intel 35,217 McDonald’s 40,062 McDonald’s 41,992
8 Apple 33,492 Intel 39,385 Samsung 39,610
9 Disney 29,018 Samsung 32,893 Intel 37,257
10 HP 28,479 Toyota 30,280 Toyota 35,346
Fig. No. 2.1. - Source: Interbrand.com

5. 2.1. Apple’s products line
a) Macintosh
The Macintosh, marketed as Mac, is a line of personal computers designed,
developed and marketed by Apple Inc. Steve Jobs introduce the Macintosh
128K pm 1984 and it was the first mass market personal computer featuring a
graphical user interface and a mouse. It was targeted mainly at the home,
education and creative professional market.
 MacBook Air : Consumer ultra-thin, ultra-portable notebook, introduce
in 2008
 MacBook Pro : Professional Notebook introduce in 2006
 Mac Mini : Consumer sub-desktop computer and server, introduce in
2005
 iMac : Consumer all-in one desktop computer, introduce in 2006
 Mac Pro : Workstation desktop computer, introduce in 2006
The Original Macintosh, Released
in January, 1984
Latest Macintosh

6. b) iPad
Apple has introduced their much-anticipated media tablet, the iPad in 2010.
It offers multi-touch interaction with multimedia formats including
newspapers, magazines, ebooks, textbooks, photos, movies, videos, music,
documents, Spreadsheets, videogames and most famous iPhone apps. It
introduced with wireless technology such as Wi-Fi and optional 3G therefore,
it was given a popularity for Apps.
c) iPod
On 2001, Apple introduced the iPod digital music player. The iPod brand is
now the market leader in the portable music players by a significant margin,
with more than 350 million units shipped as of September 2012. Apple has
partnered with Nike to offer the Nike + iPod sport kit
 iPod Shuffle
 iPod Nano
 iPod Touch
 iPod Classic

7. d) iPhone
In January 2007, Steve Jobs introduced the long-anticipated iPhone a
convergence of an internet enabled smartphone and iPod. The user interface is
built around the device’s multi-touch screen, including virtual keyboard. The
iPhone has Wi-Fi and can connect to many different cellular networks. The
iPhone can shoot video, take photos, play music, send and receive mails,
browse the web, send texts, and many more things.
e) Apple TV
Apple TV is a digital media player developed and sold by Apple Inc. It is a
small network appliance and entertainment device designed to play content
from the on line videos. Apple has introduced it on 2007.

8. 3. Apple’s Corporate Identity
a) Apple Logo
Apple’s first logo design by Ron Wayne, describing Sir Isaac Newton sitting
under an apple tree. It was immediately changed by Rob Janoff’s “Rainbow
Apple”, the logo was designed with a bite. In 1999 apple officially dropped the
rainbow scheme and began to use monochromatic themes, nearly identical in shape
to its previous rainbow design on various products, packaging and advertising. An
Aqua-themed version of the monochrome logo was used from 1999 to 2003, and a
Glass-themed version was used from 2007 up to now.
b) Apple Slogans
Apple first slogan was “Bytes into an Apple”, uses on late 1970. “Think
Different” is the famous Apple’s slogan created in 1997 and uses until 2002.
And there are so many slogans they used time to time to advert their new
product to the market. All of them were very creative and they are using “You
are more powerful than you think” to promote their iPhone5.

9. c) Brand Identity
The Apple brand identity stands for innovative products, the application of
ground breaking technology, high quality products that are well made and
superior to their rivals.
The symbol / logo that represents the company is instantly recognizable.
Customers buy Apple products because they want to be associated with high
quality and innovative technology.
Apple has a branding strategy that focuses on the emotions and they concern
customer’s life style & simplicity. A customer with a busy life style to be
willing to easiness of use. Apple create a user friendly environment with their
product by introducing computers to personal use. Apple always talk about
people. Steve Jobs said “For Apple it is not about money. It is about the people
you have, how you are led, and how much you get it.” – Fortune, 2008.
They don’t talk about selling products, they are talking about brands. Apple
is gaining market share in every category and, given the premium price of their
products, that is a significant achievement.

10. 4. Apple’s innovation strategies
4.1. Definition of Innovation
Innovation is the application of better solutions that meet new requirements, in-
articulated needs, or existing market needs. The process of translating an idea or
invention into a good or service that creates value or for which customers will pay.
Fig. 4.1 – Innovation
The market leader always practices the innovation method to stable in the
target market and to improve the market share.
4.1.1. Types of innovation & Practicing in Apple
When we talk about the innovation, the first thing that comes to mind is
product innovation. But there are ten different types of innovation. The more
types you incorporate, the more successful your innovation is likely to be.
Source: doblin.com/tentypes/ - Inspired by Larry Keeley, Geoff Tuff
What is
desirable to
users?
What is
possible with
technology?
Innovation
What is viable
in the
marketplace?
Innovation = theoretical conception + technical invention + commercial exploitation

11. a) Innovation process - How Apple creates unique products?
Apple takes ideas that others managed to makes them beautiful,
usable and desirable.
b) Core process – How Apple creates and add value to its products?
Apple didn’t invent first portable music player but they introduce
the iPod with a good interface, storage and unique features to change
the way the world transport and listens to music.
c) Product performance – How Apple designs its core products?
They offer a unique features and performance through their
product than their competitors. Therefore, customer perception
among the Apple.
d) Product/Service system – How Apple links and provides a platform
for multiple products?
Apple has introduced their much anticipated iPad, running a
modified version of iOS. It offers multi-touch interaction with
multimedia formats including word processing documents, spread
sheets, video games, and also includes a mobile version of Safari for
web browsing, as well as access to the App Store, iTunes Library,
iBookstore.
e) Customer service – How Apple provides value to customers and
consumers beyond and around your product?
Apple offers with a combination with Nike to develop many
services around Nike’s shoes to measure calories burned and record
the distance and pace of a walk or run. The product become the
service.

12. f) Channel – How Apple gets its products to market?
Apple websites allows the customer to purchase their products
like iPods, laptops, mobile, directly through the apple online.
Furthermore, there are many more retail and wholesale distributors
worldwide to bring their products to end user.
g) Brand – How Apple communicates your product?
As the number one brand name in the world, Apple has a strong
brand image in their target market. Everyone tries to be an owner of
an Apple product. They have positioned their product as magic.
Their slogan is “Think different” therefore, customer do not by a
smart phone but the buy an iPhone, customer do not by a MP3 player
but they by an iPod, this is the result of brand position of Apple.
The famous television advertisement of
the two characters who personify a
Windows PC and a Mac PC [I am a PC &
I am a Mac]
h) Customer Experience – How Apple’s customers feel when they
interact with your company and its products/services?
Apple’s emotional branding, a brand that is felt in the heart and
mind of the consumer. It is the key to its survival. Apple’s brand is
reflected through their core beliefs about innovation, imagination
and design. It is promoted through their products, advertisement and
customer experience.

13. i) Business model – How Apple makes money?
By innovation – Apple always try to be the market leader through
introducing newest technology to the world and they invited to the
innovators (e.g.: Apps developers) to joined with them and grow up
the market by that thing they can increase their target market day by
day.
j) Networking – How Apple joins forces with other companies for
mutual benefit?
Millions of music makers and app developers contribute to the
Apple platforms. The App Store to sell third-party applications for
the iPhone, iPad, and iPod. iTunes store users can purchase and
download music, music videos, television shows, audiobooks, and
movies.

14. 5. Strategy & Leadership
Apple has built as an imperishable innovation Factory, with group of very good
innovators led by CEO Steve Jobs, who share a common vision and passion to
create amazing products that spread happiness entering new markets. They open to
stable in their belief that real innovation will drive real business at present and in
the future. Steve Jobs was a visionary leader and acted as Apple’s chief innovator.
He believed that in order to innovate “If you need a very product oriented culture,
lots of companies have tons of great engineers and smart people. But ultimately,
there needs to be some gravitational force that pulls it all together.” Apple
leadership is based around a tight management structure with teams led by hands
on managers.
Apple’s strategy of innovation is customer centric. Apple aims to provide for all
basic human needs and create a desire for its customers to interact with their
products. The goal is for the customer to love their machines, focusing on every
little detail down to packaging. Apple maps out their product’s innovation cycle 5
to 10 years into the future, as a result, this innovation platform makes it difficult for
its competitors to catch up. Finally, Apple takes a broad approach with their
product, analyzing customer needs and attempting to fulfill them. Product such as
the Apple TV or the Mac Cube have more or less failed, but Apple’s portfolio
approach allows the company to market a relatively streamlined number of product
and see what catches on.

15. 5.1. Idea Sourcing & Design of Innovation
As the chief innovator, Steve Jobs was very involved in the sourcing of initial
ideas. Apple usually starts with a new idea for a multimedia interaction and design
a product that will enable that interaction. Apple always tries to studies new ideas
and how they can promote customer interaction rather than looking to solve
specific customer needs. Apple thinks differently than their competitors and
improves the customer experience. For example, the iPod is not the first MP3
player, but it was the first MP3 player that focused on interaction between the
music store, computer and player.
5.2. Interactive model of innovation
Fig. 5.1 – Interactive model of innovation
Source: Adapted from B. Rothwell and W. Zegveld (1985) Reindustrialization and
Technology, Longman, London
The interactive model develops this idea further and links together the
technology push and market pull models. Apple always practiced the technology
pull strategy, because, when they introduced the iPod there was Walkman and Mp3
players in the market with some extent of features. But Apple has introduced the
iPod in high technological approach to capture the whole market to this product.
Latest sciences and technology
advances in society
Needs in society and the
marketplace
Idea  R&D  Manufacturing  Marketing  Commercial
product
TECHNOLOGY
PUSH
MARKET
PULL

16. 6. Future of Apple
6.1. Present Leadership
Timothy Donald Cook (“Tim Cook”) is the present CEO of Apple Inc.,
appointed as the acting CEO of Apple after Steve Jobs began medical leave in
January, 2011. After the death of Steve Jobs he became the CEO of Apple Inc.
Cook was asked by Steve Jobs to join with Apple in 1998 and he said that he
decided to join with Apple after meeting Jobs for the first time.
6.2. Future plans
Apple really wants to keep their position in the first place as the world famous
brand. As the Tim Cook’s statements, Apple is developing both a fitness, sensor-
oriented smart watch and New Apple Television product. Future Apple TV product
will likely revolve around both voice and motion integration, and sources expect
an Apple TV software revamp to launch alongside new hardware sometime next
year. Apple is also developing larger iPhones, iPads, and higher resolution Mac
laptops.
Currently, Apple is rumored to be working in the wearable category, which Tim
Cook previously suggested was "ripe for exploration" as there are no significantly
popular products in that market. Apple is researching a host of possible features
for its much-rumored smart watch that would set it apart from existing products on
the market, including a range of biometric sensors.

17. 6.3. Innovation management process for Apple products
Fig. No: 6.1 : Innovation as a management process
Source: Adapted from B. Rothwell and W. Zegveld (1985) Reindustrialization and
Technology, Longman, London
Innovation is an opportunity for something new, different. It is always base on change.
Innovator do not view any change as treat but as an opportunity.
 Research and development
 Production
 Marketing
External Inputs:
Scientific and
technological
development;
Competitors;
Suppliers;
Customers;
University
departments
External Inputs:
Societal needs;
Competitors;
Supplier
partnerships;
Distributors;
Customers;
Strategic alliances
External Inputs:
Macro factors;
Competition;
Profit;
Growth;
Diversification;
Cost and input prices;
Political influences
Finance and Business leadership
New product / service
development process

18. a. Basic Research:
This is the type of work done at academies and some R&D agencies, what are
the basic works done before the research. Somebody say that basic research isn’t
innovation, because it does not necessarily result in a new product or service, but
really is it is a basic innovation.
b. Sustaining Innovation:
This is the type of innovation that Apple surpasses at, where there is a clearly
defined problem and a reasonably good understanding of how to solve it. When
Steve Jobs first introduced the iPod, it was simply a device that indorsed you to put
“1000 songs in your pocket.” That meant apple says to you needed convinced
amount of memory fit into certain dimensions always in your hand. This problem
not a difficult problems that took a few years to solve, but it was attractive clear
what was involved and who was capable of solving them.
c. Disruptive Innovation
Apple introduced the concept of disruptive innovation in their innovative
products. Because it tends to perform not well. As an example: (like early digital
cameras that took lousy pictures), but overtake on a different parameter, such as
price or suitability or compatibility.
d. Breakthrough Innovation
In this method, the problem is well defined, but the path to the solution is unclear,
usually because those elaborate in the territory of innovation has success.
6.4. Development and experimentation
Apple products are not rolled out with beta testing, rather they are presented in
a final and perfected form. A simple, beautiful, perfected product straight out of
the gates is a result of a painstaking development process. Process makes them
more efficient. What they do know is that there are large cross functional teams
with hands-on leaders. Even Jobs gets involved at the product development and
experimentation level. The team is given a defined timeline to encourage the
process. Apple engineers are famous for working 90-100 hour weeks for months
at a time to hit the predetermined hurdles and deadlines.

19. 7. Conclusion
As world number one brand Apple Inc., has lot to look forward to in future, including
some big plans that they think customers are going to love. They put innovation to work
serving humankind’s deepest values and highest aspirations.
Apple understands their customers and successfully executes on creating value for
both Apple and their customers. Apple builds beautiful products that are simple to use
and empower their customers through their high quality user experience.
They never give up innovation as they never give up number one position. But keep
the number one position, they should be continue the Steve Jobs strategy again and
again. It means every employee should be get to gather to the innovation process of the
company then they never lose their position.

20. References
 www.apple.com
 www.wikipedia.org
 The study book, Innovation Management and New Product Development, by Paul
Trott-fourth edition
 www.doblin.com/tentypes/
 www.interbrand.com