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Adapting To Disruption

The document outlines five key reasons why Apple successfully adapted to market disruptions while Kodak failed, including a focus on customer experience, competitive advantage through new technology, and the development of complementary ecosystems. It also identifies three companies following Apple's innovative path today (IBM, Netflix, Amazon) and three companies that resemble Kodak's decline (Nokia, Yahoo, Compaq). The analysis emphasizes the importance of adapting to changing customer expectations and leveraging technology for sustained success.

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minadikaina31
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20 views2 pages

Adapting To Disruption

The document outlines five key reasons why Apple successfully adapted to market disruptions while Kodak failed, including a focus on customer experience, competitive advantage through new technology, and the development of complementary ecosystems. It also identifies three companies following Apple's innovative path today (IBM, Netflix, Amazon) and three companies that resemble Kodak's decline (Nokia, Yahoo, Compaq). The analysis emphasizes the importance of adapting to changing customer expectations and leveraging technology for sustained success.

Uploaded by

minadikaina31
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Adapting to Disruption.

1. 5 reasons Apple was able to adapt but Kodak was not.


a) Designed Customer Experience.

Apple designed a whole new Customer Experience with their products.


Kodak’s mindset of ‘Taking Pictures to preserve memories’ was no longer
the Customer Expectation and hence their assumption that people will not
use digital cameras due to the poor quality of images was incorrect.

b) Competitive Advantage.

Apple identified a new basis for competitive advantage by adopting new


technology and developed new products like the iPod, iPhone, iPad etc based
on their core operating system. Kodak tried to fit the new technology into
their existing business model by developing the Photo CD and the AVANTIX,
which was not sufficient for them to sustain.

c) Network Effects and complementary products.

Apple with their huge customer base used their core operating system the
iOS as a platform to make it more valuable for customers as well as
suppliers. Apple developed products that mutually promote each other. For
example, because of cross-device compatibility and accessibility, customers
are more likely to purchase an iPhone when they already have a MacBook
and are more likely to purchase apps and digital products via iTunes when
they already have a MacBook or an iPhone.

d) Developing new ecosystems.

Apple have developed an ecosystem of complementary products that


provide cross-device compatibility and accessibility as well as competing
through collaboration by providing the iTunes platform for app developers
to develop new apps for Apple Products. This ecosystem makes it difficult
for customers to move away from Apple.

e) Complementary Assets.

Apple’s complementary assets are:

• Globally popular premium brand – Valuable, rare, and difficult to


imitate.
• Systems setup for rapid innovation – Enables Apple to maintain a
high rate of innovation.
• Access to user information – helps in gaining valuable information to
support innovation and new product development as well as
marketing strategies and business management.
• Global distribution and sales network – Apple’s global network of
strategically located authorised sellers helps it to reach target
customers worldwide.
2. Identify Companies.
a. 3 companies which seem to be following Apple’s path today.

IBM

Netflix

Amazon

b. 3 companies which appear to be walking in Kodak’s footsteps today.

Nokia

Yahoo

Compaq

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