, has taken innovation to new heights over the few past decades and its success mostly due to its core competence. Apple outsourced its manufacturing products, developing products inside the walls of their company and doing so in secrecy. Even though Apple threw its software platform open, it still limits the distribution of applications possible only through its App Store. Apple distinguishes what core is and what non-core technology is. It is their business model that it takes advantage of resources out of company if it is non-core. After all, the key success factor of Apple is to secure the initiative of business model with creativity of imitation.
When market is at initial stage and demand is small, the size of dedicated organization normally needs to be small. However, in general, large firms tend to repeat their mistakes that it struggles in small market and withdraws from the market. Apple's struggle to achieve destructive innovation was not an exception. Apple made the world's first personal computer 'Apple 1' with innovative technology, comfortable software, simple design and impressive marketing, but faced IBM PC made by 'WinTell' which is the alliance of Microsoft and Intel. This led Apple's market share to decrease to around 2%. In 1990's, Apple did disregard the flow of the market and stuck to its closed system and excessive technological development; so, it was losing its customers and falling in market. In addition to this, Apple's high R & D costs and strategy of selling agency was weakening its price competitiveness. In other words, Apple was missing other important factors because it stuck to innovative technology.
Apple has become an innovative company through iPod, iPhone, iTunes and service-oriented business model. These destroyed existing market's rules that were price and functionality-oriented, changing to market and customer-oriented. At the center of Apple's innovation, there was customer-oriented design competitiveness, which is the most praised by customers.
