Essay on Business Concept Innovation in Apple

1570 Words May 20th, 2007 7 Pages
business concept innovation in Apple The business concept innovation of apple will be analyzed by several business models. One of them is the concept of Gary Hamel .
He defines the business concept innovation as following:

 "Business Concept Innovation is the capacity to imagine dramatically different business concepts or dramatically new ways of differentiating exiting business concepts"
 Business conept innovation changes the basis of competition in an industry
 A Business Model is simply a Business Concept that has been put into practice

Moreover Hamel distinguishes 2 kinds of innovation:

 The first is innovation regarding the firm's historic strategy (change own strategy)
 The
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Steve Jobs claims that is the reason why higher demand should not mean higher cost. "There is no scarcity of stock for popular music sold on iTunes: in theory, it can be downloaded by an infinite number of people".
Variable prices rely on supply and demand. In internet sales (downloading) there are no supply limits. That is the reason why Apple doesn't variable pricing in iTunes case.

Pricing Structures for other Apple products are variable – depend on models and memory capacity.

2) CORE STRATEGY

Core Strategy explains the way of company's competing manners. It includes three elements:

 Business Mission

It is a summary description of an entity's purpose. It is typically included in the Articles of Incorporation.

Apples mission's statement is:
„change the world by bringing computer to masses".

According to this statement it is easy to find out that the business was not only created for making personal computers but also for spread pc's to the masses. Apple's idea is to make technology simple.

 Market Scope

Market Scope indicates where the firm competes.
Apple is continuing the push toward moving the computer out of the office and into the living room. As Apple does this, it might be to their benefit to start redefining which market they are really part of. It's not news that Apple doesn't hold a dominant position in the

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