1 / 18

Innovation Success and Failure in America

Innovation Success and Failure in America. By: Christian Hammerdorfer and Tori Churchill. Innovation FAILURE. Borders: The Beginning. 1971 – Tom and Luis Borders open the first store in Ann Arbor, Michigan 1992 – Kmart acquires Borders and merges it with Waldenbooks

tirzah
Download Presentation

Innovation Success and Failure in America

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Innovation Success and Failure in America By: Christian Hammerdorfer and Tori Churchill

  2. Innovation FAILURE

  3. Borders: The Beginning 1971 – Tom and Luis Borders open the first store in Ann Arbor, Michigan 1992 – Kmart acquires Borders and merges it with Waldenbooks 1997 – Borders goes international 1998 – Company launches Borders Online, establishes Borders (UK) Ltd 2001 – Borders outsources online operations to Amazon 2004 – Company agrees to have Seattle’s Best Coffee operate cafes in its U.S. stores

  4. The Last Years 2006 – Borders turns a profit for the last time 2007 – 2008 – Company closes or sells all foreign stores 2009 – Borders offers free Wi-Fi in stores 2010 – Company creates eBook store 2011 – Borders files for bankruptcy, closes stores, liquidates assets

  5. Positive Moves By Borders Large inventory Excellent inventory system Borders Online Self-service kiosks Borders Reward Card Agreement with Seattle’s Best Coffee Free Wi-Fi

  6. Borders Focused on variety Used software to determine which books to sell Invested in CDs/DVDs Third party e-reader Expanded physical plant Refurbished stores Outsourced online sales operation to Amazon Barnes and Noble Focused on lowest price Sold best-sellers and bargain books Invested in online sales Developed own e-reader (Nook) years before Borders hopped on board Handled own online sales operation Offered eBooks almost one year earlier Offered free Wi-Fi 6 years earlier

  7. So why did they fail? • Product • Delayed introduction of e-readers, website and online retail, Wi-Fi • Mistake of focusing on CDs/DVDs • Price • Higher than prices of competitors • Place • Outsourced online sales operation to competitor Amazon • Too many stores that were too large • Promotion • Lack of promotion

  8. Other Reasons for Failure • Targeting • Mass marketing • No direction • Positioning • More for more • Differentiation • Products didn’t stand out from Barnes and Noble or Amazon products • Borders didn’t pay attention to the changes in the market until it was too late to introduce new and successful products.

  9. Innovation Success

  10. Apple Inc. • One of the most successful technology companies worldwide. • 60 million Mac users worldwide, 23% market share for personal computers • iPod has 78% market share for portable music players, with over 300 million sold • iPad has 75% market share for tablets • iTunes is the number 1 music store in the world • Apple has not always been so successful, though.

  11. First Rise and Fall of Apple • In 1985, Jobs was relieved of his management duties. • The introduction of the Macintosh in 1986, and the PowerBook in 1991 made Apple very successful. • For a time, Apple was the market leader in personal computer technology • After 1993 though, Apple began to slip, launching a long list of failing products, and losing market share to Microsoft • In 1996, the company was on the verge of bankruptcy, and Jobs was brought back into the company.

  12. Return to Profitability • Between 1997 and 2005, Jobs returned Apple to a profitable state. • The iMac, featuring modern technology and modern design, was released in 1998 • Purchased several companies in digital production on the professional and consumer level. • In 2001 the first Apple Retail Store and iPod were announced, followed by the iTunes music store in 2003, which has become the largest music store in the world. • In 2006 the switch to Intel processors was announced, boosting Apple’s market share of Personal Computers to 8%, but still far behind other manufacturers using Microsoft.

  13. Massive Success • The iPod marked the beginning of the Apple revolution • In 2010, Apple surpassed Microsoft, valued at $222 billion and $219 billion, respectively • In 2005, Apple Computers Inc. became Apple Inc., shifting focus from computers to mobile devices • Windows is still the most widely used operating system, but through product differentiation, Apple has put their products into the hands of 1 in 3 Americans • iTunes • iPod • iPhone • iPad

  14. Why has Apple been so successful?

  15. Marketing Strategy • Empathy: Maintain an intimate connection with customers feelings, understand their needs better than any other company • Focus: Focus on main goals, eliminate unimportant opportunities • Impute: People DO judge a book by its cover. • Make sure packaging, design, and everything else supports the superior level of the product.

  16. Product Focus on select products Focus on perfection Price Premium pricing strategy Sells to upper quintile of consumers Focus on a superior product, not on competitive pricing Place Apple Retail Stores Authorized Retailers iTunes Store Promotion Less is More advertising Communicate how product is used Marketing Mix

  17. No market research. Apple hires a small group of incredibly smart people to develop their products. Small design team Cooperation between Engineers and Designers 1. Brainstorming Meeting 2. Production Meeting 3. Pixel Perfect Mock-ups 4. 10-3-1 Product Development

  18. Vertical Integration • Apple owns it’s entire system, OS, Software, and Hardware, keeping them completely independent. • A single executive calls the shots for every single aspect of every product, allowing for the seamless user experience.

More Related