Assignment No.

Questions & Answers

Q 1: “Skunk Works” is about creating new products or creating a need? What is your
understanding based on this brief article (OR) How does the phenomena work?

Ans:

Skunk work is basically related to the work for product development and it is kept
separate from the organization. On the basis of this brief article skunk work is all about
“creating a need” which was the main philosophy of Apple when they launched IPhone (2007),
although the CEO of Microsoft criticized that iPhone is expensive and customers will not buy it.
But through continuous efforts and having passionate employees iPhone achieved greater market
share. IPhone used the philosophy “Read the time before time comes”. They created the
demand and afterwards launched more developed versions of iPhone by product research and
development.

This phenomena works by innovative and creative ideas for incremental improvements in the
product to compete in the market. Nokia and Samsung also used skunk works model but
Microsoft failed.

Q 2: How is Apple different from its past in the light of this statement and what does it
signify or mean:

“(Steve) Jobs was successful, and Apple was not an army but full of pirates inside. However,
Apple is an army that fights to keep its position and market share inside the market right now”

Ans:

When Apple launched first iPhone there was criticism about iPhone’s launching that it
might be failed but CEO and its army was full of passion and they were ambitious and they
changed this opportunity into a unique strength and captured the phone landscape although at
that time market share was very low. Pirates are the person who feels thrust to achieve
something which is very valuable and precious. This statement signifies that Steve jobs and
his army was risk takers and opportunity seekers.

Initially Samsung and Nokia compete Apple with new and innovative versions of smart phones
but after sometime customers were taking them alike, in this race Apple introduced
incrementally new products in iPhone series through market inside, innovation strategies and
skunk works divisions.
Q 3: What was CEO Steve Ballmer’s mistake that cost the company a whole new business
opportunity and eventually his job?

Ans:

CEO Steve Ballmer’s mistake was not understanding the potential of mobile business,

A good entrepreneur is one who is opportunity seeker and he should be an entrapreneure

(risk taker). He did not work on this opportunity he can take the benefit of the opportunity by
working on product development and introducing comparatively low priced and competitive
featured phones but Microsoft failed and CEO lost his job too, although Samsung work on this
opportunity and became a strong competitor of Apple.

Q 4: Keeping the title of the second abridged article in mind why do you think Ikea became
successful in a technology oriented market that could have been taken over by the Apple,
Google and Samsung?

Ans:

IKEA as a learning organization availed the opportunity of incremental changes in technology

and made products that are controllable by smart phone apps and attracted the customers. It used
the philosophy of Home + tech. IKEA stores are so attractive that it’s very easy for IKEA to
identify the target market and each visit proved repeat visits and created more opportunities for
them while for smart phone plat form its quite difficult to attract the customers for home wares.