Synopsis
The case is about the degrading business condition of Apple and how important is innovation and
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
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
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
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
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
Recommendations
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
Applying creativity and innovation inside a company doesnt exactly follow a management
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
company.
Alina Adhikari
15101
MBA Fall 2015 Page 4