Innovation and Product Innovation in Marketing Strategy

Question: Discuss about the Innovation and Product Innovation in Marketing Strategy. Answer: Introduction: Founded in the year of 1976, Apple is one of the most recognized multinational technology organizations of America, dealing with the production, development and the sale of the consumer electronics, software and online services (Civi, 2013). However, despite the recognition, the company has achieved, it is likely to encounter tough competition from the rival forces, like Samsung or Google. Hence, the organization should not only formulate innovative strategies, but for the successful implementation of the same, the organization is required to conduct a realistic assessment of its internal resources. Internal Environmental Analysis: The internal analysis of an organization is done by identifying as well as evaluating the resources, core competencies and capabilities of the organization. In order to comprehend the internal environment in which Apple is conducting its business, the SWOT analysis can help in evaluating two internal factors, strength and weakness of the organization. First of all, as far as the strength of the organization is concerned, innovation is the key word defining each product of Apple. The management authority of the organization strives to excel and thereby distinguish itself from the arch rivals, such as Samsung or Motorolla. With the production of MacBook, Iphone or Ipad, the organization has been producing products which boast of the application of novel ideas (Boone Kurtz, 2013). The rival organizations can only imitate, but may have hard time replacing an Apple product. Next, the organization has always associated its brand name with a sense of sophistication, so that each product after its release in the consumer market always enjoys much hype and positive response. The strong brand image that Apple possesses is expected to help it dominate the consumer market over the next years as well. The sophisticated supply chain infrastructure as well as the distribution system also favors the growth of Apple. With as many as 470 stores in 17 countries of the world, Apple Inc. sells via a variety of channels, such as the trade partners, online stores as well as the premium retail stores (Kanagal, 2015). Besides, the organization is also known for offering unrivalled consumer service to its customers with the help of the Apple genius bar. Apart from these factors, the financial strength and the high profitability of the organization is also a source of strength for the organization. In fact, the fact that Apple Inc. is the first organization to have crossed 700 billion dollars, and to have emerged as the largest public traded organization in the entire world, helps the organization gain competitive advantage over rival forces (Wenzel Voigt, 2015). On the other hand, as far as the weakness of the organization is concerned, the major issue with Apple is that the company charges an enormous amount of money, and as a result, the organization may lose a major share of market to the competitors, such as Samsung or LG, whic h offers the products at much lower price (Fisher Gee, 2013). Another major weakness of the organization is the incompatibility of the Apple products with any other third-party software or accessory that ultimately ends up limiting the experience of the consumers. Besides, Apple also has a very limited number of products, and hence its consumer market is also quite limited, in comparison with its competitors. However, despite the weakness, it is noteworthy that the core competencies such as brand loyalty, unrivalled consumer service, or the strong marketing teams help the organization gain competitive advantage (Heracleos, 2013). The organization hires highly qualified employees, such as Jeff Williams, who have always enables the introduction and promotion of innovation products. Findings of the Strategic Analysis and the Key Issues: From the external and internal environment analysis of Apple, it has been seen that Apple does enjoy a competitive position in the consumer market, though it does encounter strong competition from some of the rival giants. The organization, although well-equipped in the path of innovation, it should consider the option of offering a wide range of products, that will help in expanding the target market (Agrawal, Atasu V Ittersum, 2015). The target market of the organization mainly constitutes upper and upper middle strata of an economy, and hence, companies such as Samsung or Motorola, can easily attract consumer attention by producing a wide range of differently priced products. Besides, though innovation is the unique selling point of Apple Inc., since the recent years, the organization is not offering anything called innovative. For instance, apart from the Force Touch application, the iPhone 6 could not boast of any innovative feature (Civi, 2013). Similarly, the Apple TV was als o offering nothing much, except the same apps such as Amazon Firestick and Chromecast, which are already present in any other smart television set. Given the threat of new entrants quite high, Apple may not be able to retain its position, even if it can survive. Oppo, Microsoft, Google and Samsung offer tough competition to the organization (Agrawal, Atasu V Ittersum, 2015). Although, in the developing countries, there is a greater demand for the Apple phones, with the increase of telecommunications regulations in these countries, the usability of the products can be limited (Sepulveda, 2013). Conclusion: Since innovation is the key quality that distinguishes the brand identity of Apple, the company should keep on producing innovative products. Of late, Apple has not offered a disruptive product, and the organization is primarily obsessed with making the products thinner and lighter or offering Live Photos features, which are not highly innovative. Apple, for ensuring robust growth in the future, must invest for producing innovation in the iPhone products that accounts two-third of revenue. Apple can still invest in R D activities for producing waterproof iPhones, more durable phones, better battery technology and built-in health sensors, and gesture control that can easily help the organization offer unique products to the consumers. The organization should also consider slashing the price of the products, as unless the organization reduces its price, it will be incapable of competing with companies such as Google, Samsung or Motorola, that offer products for a wide range of consume rs. The premium pricing strategy with no innovative features in the products offered, will not work out for Apple. In order to regain its indomitable position in the consumer market, Apple may consider partnering with the inexpensive brands such as Target, for the purpose of customizing their watch bands. THe organization literally needs to improve its consumer experience, by disrupting the present market. Besides, the organization is also required to improve upon its marketing aspects, as the company is required to inform its consumers why a product is relevant for a particular user. Reference List: Agrawal, V. V., Atasu, A., Van Ittersum, K. (2015). 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