National Cheng Kung University

Institute of International Management

Technology Management

Implementing Innovation Strategy of Apple Watch

Group 3
Student: RA6027358 Timothy Sunseok Lee
RA6027714 Woranath Khemasiri
RA6037303 Ratinun Tepyou
RA6027243 Thitika Sirinimitwong
RA7021101 Chiu Yu-Yin (Enid)

Professor: Dr. Wei-Shiun Chang.

December, 2014
 INTRODUCTION

1. What’s Apple watch?

Apple Watch (marketed as   WATCH) is a Smartwatch created by Apple Inc,
announced by Tim Cook on September 9, 2014. It has fitness tracking and health-
oriented capabilities, as well as integration with iOS and existing Apple products and
services. The Apple Watch is scheduled to be available in three models, with a wide
variety of case and band options.
2. Research Motivation
1. Opportunity of Apple to expand in other market segmentation.
2. To see the possibility of successful factors of Apple watch.
3. Biggest innovation company in the current era.
4. High possible customer intention to purchase Apple watch.
3. About Apple watch

Table 1

Comparison of Apple products

iphone ipad ipod iwatch

Function 3 4 1 2

Portable 2 1 3 4

Fashion & Design 2 1 3 4

Price $199 $499 $149 $349

Function
1. First wearable gadget beams messages, Facebook updates.
2. Apple Video, iMessages, Health, Calendar, Weather, Mail, Photos, Camera's
shutter button, Passbook, Apple Pay ,Apple Maps for navigation.
3. Fitness trackers with health sensors and nutrition apps.
Design
1. Rectangular-shaped screen plus one knob and a single button.
2. Sizes measured by height: 38mm (1.5in) and 42mm (1.65in).
3. Screen is surrounded by casing made of custom alloys of stainless steel and
aluminum

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 4. A unique round display like Moto 360
5. Put a modern-day twist on its twist functionality.
6. Digital crown replaces the pinch-to-zoom touchscreen mechanic
7. Zoom into your app selection
Special features
1. Conversation button: allow you to start a conversation with friends.
2. Apple watch face
3. Apple watch battery life: Current research shows that it can last around one
day.
4. Three different categories:
A. Apple watch: Cold-forged stainless steel. Formulated for strength
and beauty. Brilliantly scratch-resistant sapphire crystal. Beautifully
engineered bands and closures.
B. Apple watch sport: Made from lightweight anodized aluminum light
and strong bands engineered to keep up with an active lifestyle.
Fluoroelastomer band comes in five different colors
C. Apple watch addition: Six uniquely elegant expressions case crafted from
18-karat gold protected by polished sapphire crystal.

Table 1

Comparison among smart watches:

Apple Watch Moto 360 Samsung Gear Pebble Smart
2 Watch
Screen Size Unclear 1.56 inches 1.63 inches 1.26 inches
Screen Shape Square Round Square Square
Resolution Retina 320 x 290 320 x 320 168 × 144
Dimensions Unknown 1.81" x 0.45" 1.45" x 2.29" 1.8" x 1.33" x .
x .39" 41"
Weight Unknown 1.7 ounces 2.39 ounces 1.97 ounces
Mobile iOS Android Wear Tizen Pebble OS
Operating
System
Processor Custom S1 SiP TI OMAP 3 1.0 GHz Dual 120 MHz Single
Core Processor Core Processor

Battery Life Unknown 320 mAH, a 300 mAh, 2-3 5-7 days
day days typical
usage
Storage Space Unknown 4GB 4GB 1 MB
Color choices Black, gray or Black, Silver Charcoal Black, Brushed
silver , gold Gold Brown Stainless Steel,
and Wild Black Matte
Orange

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 Other sensors Accelerometer, Pedometer, Accelerometer, Accelerometer,
Heart Rate, Heart Rate, Gyroscope, Compass,
802.11b/g, Bluetooth 4.0 Heart Rate, Ambient Light
Bluetooth 4.0 Bluetooth 4.0 Sensor,
Bluetooth 4.0

Price $349 $249 $300 $150

RAM Unknown 512 MB 512 MB 8 MB (Flash
ROM)

Table 2

Summarize of the comparison:

Samsung Gear
Apple Watch Moto 360 Pebble Steel
2

Focus Consumer Consumer Enterprise Enterprise

Very
Cost Middle Expensive Inexpensive
Expensive

Savvy Detailed
Innovation Geeky Innovator
Elegance follower

Design Elegance Classic Techy Aesthetic

Functions Multi Multi Advanced Simple

Ease of Use  Easy Easy Difficult Easy

III
Figure 1
Functions and Design& Fashion

FUTURE RESEARCH

Innovation strategy
1. Managing the new product innovation.
2. Multiple dimensions of product innovation.
3. Implementation of the innovation strategy.
4. Strategy for launching the new product.
Company strategy
The Internet has changed the way of Apple company sets its strategy. Apple is
expanding and improving its distribution capability by opening its own retail
stores in internationalized cities around the world in a market of good quality
shopping venue. Apple provides expert retail floor staffs to selected sellers’
stores: it has entered into strategic alliances with other companies to brand and
distribute Apple’s products and services. Apple Inc. recently increased the
accessibility of ipods through various sellers that do not currently carry apple
operating systems, and this increased the reach of its inline stores. There have
been few studies about the Strategy of Apple Incorporation.
Product promotion strategy
Apple is really active when it comes to promotion activities, because the way
to promote their products is calling the attention of the target market to response
directly at the appropriate time. Apple uses a simple and positive ways to
promote its product, for example, by displaying all the products to general
customers, the company can know the experience and expectation from the
customers. Also by improving customers experience trough innovation, the

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 company is achieving customer’s expectation freely and comfortable with the
product.
Research objective
The main question in this research is how Apple applies their successful
experiences to Apple watch. The core competence of the company is delivering
exceptional experience through superb user interfaces. The strategies of the
company are based on Apps store, for example, the iPhone with its touch screen
"gestures" which was used again on the iPad, Mac, iCloud and iTunes. The Apps
Store is playing key roles in the success. The distinctive feature of Apple Watch
is easy to use and elegant.
Starting with a major revitalization of the Apple brand when the iPod was
launched in 2001, Apple has worked hard to migrate its brand and its product
strategy in close harmony towards today's position. The company is now defining
itself more broadly than being just a devices company. 
Our expectation toward the company was set with their high-tech brand
personality. Therefore, the company has to live up the brand image in order to
meet their customers’ expectation. In conclusion, how the company maintains
and make Apple watch survive from its brand and product innovation. In
addition, how to sustain their brand image will be the main issue that we want to
find out in this study.