Case Study: Apple Watch: A Disruptive Innovation or a Chink in Apple’s Armor?
1. Define the problem:
- The Apple Watch was prematurely launched and did not meet consumer expectations.
2. Gather Pertinent Facts:
- This was the first new product launched since the passing of Steve Jobs in 2011 and Tim
Cook became CEO.
- Apple Watch was meant to take over smartphone use but ended up making apps smaller,
inconvenient, and/or not compatible.
- The selling price is high, leaving competitors to have the advantage in sales.
- Watches did not appeal to younger generations who use smartphones to tell time.
- Apple Watch is not compatible with Android phones.
- Multiple generations of the Apple Watch have been created to fix previous issues.
3. Alternative Solutions:
- Have Apple Watch become compatible with Android and Google smartphones.
- Focus on improving watch instead of releasing the annual new iPhone(s).
- Take Apple Watch off the shelves.
- Market the product differently.
4. Pros & Cons:
Alternative Solutions
Have Apple Watch become
compatible with Android and
Google smartphones
Focus on improving watch
instead of releasing the
annual new iPhone(s)
Take Apple Watch off the
shelves
Pros
• Have more consumers and
sales
• New features will be
available
• Could potentially have
Android users switch to
Apple
• Having a never-before-seen
feature will increase sales
• Higher customer
satisfaction
• Have Apple Watch owners
potentially upgrade their
devices annually
• Focus more on making
better phones, tablets, and
Cons
• Less unique
• Current functions wouldn’t
be as useful
• Lose sales on other products
(phones, laptops, etc.)
• Lose sales on other products
• People wait for the new
phone each year
• Risk having people switch
to Android
• Harm Apple’s revenue
• No more competitive
Wilimberg 2
computers
Market the product
differently
• Focus more on the Apple
features instead of the “wristwatch” part
• Push the medical benefits of
the watch
• Promote with AirPods so
phones don’t have to leave
pockets
advantage
• Apple owners could
potentially switch to Android
for compatible smart watch
• Harm Apple’s reputation
• People don’t like the idea of
having a computer on their
wrist
• Lose current consumers that
the Apple Watch is marketing
towards
5. Decision and Defense:
- Apple should market the product differently.
- Having the watch compatible with all software can take years and can be expensive to
do. Once it is compatible with everything, I believe it loses its special value to the
company. iPhones are wildly popular, and some people wait each year to have the new
phone. Apple iPhones are known for their 2-year guarantee and start to slow down. If
they skip a year of a phone release, those with older phones can make iPhone users
switch to the new Android and a serious loss in revenue. Taking the Apple Watch off the
shelves would show the company has no more trust in the product leaving customers
curious about other products as well. Also, a serious loss in revenue. Marketing the
product differently can appeal a market of people that may not have been interested
before. For example, those who are retired can use the emergency call feature if anything
were to happen to them or let the working generation know it’s a great way to keep your
phone charged throughout the day during a morning or evening commute.
6. Implementation and Feedback:
- I would look at sales quarterly for 1 year and compare them with previous years to see
which form of marketing made more sales. Which ever one had more is what Apple
should stick to until a new feature is developed and ready to be advertised.
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