Innovation and New Product Development Case Study

Apple’s iPod: Product Development and Extension Strategies

OR

Abstract:
Apple’s iPod, the portable digital player, was launched in October 2001. Soon, it became a major contributor to Apple’s revenue. Apple launched the iTunes music store from where users can download songs and transfer them to their iPod. Subsequently, several new versions of the models were launched and gradually, iPod became the market leader in the portable digital player industry. However, several new players entered the market, making the competition more intense. It was facing competition from Microsoft, Sony, and Nokia, who were developing new devices with gaming, e-mail, and music video playing capabilities. Amidst such competition, the development of new products at Apple is guided by technological development and market forces. New devices like the iTunes compatible iPod, capable of downloading full-length movies in a wireless mode, is seen as a natural product extension guiding Apple’s future.

Pedagogical Objectives:

• To discuss the strategic initiatives undertaken by Apple under Steve Jobs, to combat the competition in the digital music industry
• To discuss the new product development and extension strategies adopted by Apple.

Keywords : Apple; Product development; Product extension; iPod; Nano; Steve Jobs; MP3; Mac; Competition; Growth; Personal computer (PC) industry; Marketing Strategies Case Study; Product differentiation; Portable music player; Customer adoption; Product development; Product extension; Product design; Superior product concept, Marketing Management; Marketing Mix; Market Segmentation; Product Life Cycle; New Product Development; Consumer Behavior; Marketing Case Studies; MBA; Marketing Course for MBA Marketing Course Case Map; Course Case Map; Case Map

Contents:

• Introduction
• Apple – An Overview
• Product Development Strategy at Apple
• 360° Competition for Apple