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The case is about the degrading business condition of Apple and how important is innovation and

creativity along with other management skills in todays competitive market.

Case Issues

Why has apple been facing despite being the most innovative company in the market?
Why is the profit of Apple decreasing rapidly along with losing its market share?
Is innovation sufficient to be number one or a good management is also required?
Will Apple be able to minimize its problems if it focuses on creative problem solving?
What are the reasons behind some firms being incredibly successful despite lacking the

innovative approach?

Case Facts

Apple has been number one and is known for its inventiveness and development in the business.

The success of Apple is all around recognized since it has been successful since last 30 years

with the introduction of different innovative products. Because of dispatch of innovative items,

its aggressive stance and spotlight on accomplishing comes about speedier than others, it has

additionally possessed the capacity to achieve the principal mover point of preference in the

business sector.

In spite of its solid profile, the market share and profit of Apple have contracted and it position

from number one to ninth behind other brand names. So, the major question in the case is why

Apple is losing its market share despite being number one in innovation.

Related Concepts

Analytical Problem Solving Model

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Multiple Approaches to creativity: Imagination, Investment, Improvement, Incubation
Creative Problem Solving
Conceptual Blocks
Creative Thought

Analysis and Implications:

The case talks about the declining market share and profitability of Apple Inc. Apple has been

number one in innovation and creativity which is the key factor for Apples success. However it

has been losing its market share as the rival companies which are not at all innovative is

overtaking its position in the market. The case highlights the fact that the rival companies are

getting competitive due to the better management practices than Apple has. It also presents the

strategies that Apple is using to regain success which brings a question whether creativity alone

is enough to be most competitive or better management is required or the blend of both.

First of all it is important for Apple to define or identify its problem since it is not being able to

determine what strategies is best for Apple apart from innovation. This problem here has arise

due to the presence of Conceptual blocks because Apple is unaware of the multiple ways to

creativity and is not being able to shift its focus from innovation due to which it is having

difficulty in solving problems creatively. Apple uses Vertical thinking which means defining a

problem in a single way and then pursuing that definition without deviation until a solution is

reached. The same thing is happening with Apple since no alternatives are considered and all the

information gathered about the problem and the alternatives or solution to the problem is

consistent to the original one. Also, compression can be identified as another conceptual block

since Apple has been looking too narrowly at problems making assumptions on its own rather

than referring to relevant data and information. Similarly, Stereotyping based on the past

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experiences is another major conceptual block present here. The credit of the past success of

Apple was always given to the innovative Apple products that is why Apple has not been able to

shift its attention from more and more innovative products but is failing to address the needs of

the current needs of the market and is also not being able to divert its attention to other aspects

like creative and proper management of the working environment as well.

Apple can use different Problem Solving Techniques to solve problem in a more prominent and

efficient way to redefine its problem in order to regain its market position. But, most

importantly it can use the most sophisticated approaches to creativity which identifies four

distinct methods to achieve it that includes Imagination, Incubation, Improvement and

Investment. Apple has used Imagination in a very good way and it is the only factor that has lead

to the success of Apple. Right from the start of the company Apple has taken First Mover

advantage in the market however, it is constantly losing its share in the market because although

it introduces the very first product in the market its competitors using the same idea created

more improvised product. They also focused on better management and marketing due to which

they gained competitive advantage over Apple and took its market share and position.

The above statement shows the need of improvement in Apple products which means it also

needs to focus on the improvement of the products customizing it according to the needs or

demands of the market or consumers, doing so will aid to Apple creativity and popularity in the

market. Improvement is required because although Apple might have achieved creativity but it

also needs other opposite means i.e. developing incrementally better alternatives, improving on

what already exists and clarifying ambiguity is another major challenge. After that enough

Investment is needed to introduce a product in the market which requires proper marketing and

regular improvement which is done through R&D in a continuous basis. Using all the possible

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methods and proper attention to the problems will help to solve Apple problem although it needs

a broader perspective to problem solving.


Being the best in only one aspect did not serve much to Apple, so from the case we can conclude

that along with being innovative and creative there are also several other factors that needs to be

considered like best management practices which will not only promote the creativity but also

encourage them for better performance and commitment. Similarly, proper problem

identification of the market is another critical aspect and also understanding how the

performance of the competitor is affecting its market share gives a broader perspective in

problem identification and solution.

Applying creativity and innovation inside a company doesnt exactly follow a management

strategy known by most companies so innovative strategies should be implemented on a broader

approach inside a company in order to build a successful innovative strategy.

It also requires putting regular effort on improvement and development of the process in order to

learn from current products in order to reach a shared experience that can be implemented in the

future projects.

So, achieving creative management requires equal focus on both aspects which will serve each

other over the course of building an innovative team while increasing creative value inside the


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