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Abstract: In 1979, Sony launched a portable Walkman range. For nearly a quarter of century, the Sony Walkman urns the undisputed market leader and Sony urns considered a top innovative company. Then, in 2001, Apple decided to launch the iPod, a new portable player. About 80% of the iPod technical components (e.g. memory, storage media) were produced by various companies within the Sony group. In 2004, iPod sales overtake Sony Walkman globally and become the new market leader in portable players. How was this possible? Theoretically, Sony held all conditions for launching the new generation of portable players, but instead, a new company - Apple - completely changed the market.
Key words: Apple, Sony, technology, leadership, innovation
1.Introduction
Innovation can be defined as all the scientific, technological, organizational, financial, and commercial activities necessary to create, implement, and market new or improved products or processes (OECD, 1997).
This paper underline that innovation could appear in any company, not necessary the one that has all the prerequisites to provide a new innovation. Two very different firms, Sony and Apple Computer, are used as case study illustrations. In 1979, Sony launched a portable Walkman range. For nearly a quarter of century, the Sony Walkman was the undisputed market leader and Sony was considered a top innovative company. Then, in 2001, Apple decided to launch the iPod, a new portable player. About 80% of the iPod technical components (e.g. memory, storage media) were produced by various companies within the Sony group. In 2004, iPod sales overtake Sony Walkman globally and become the new market leader in portable players. How was this possible? Theoretically, Sony held all conditions for launching the new generation of portable players, but instead, a new company - Apple - completely changed the market. Innovation does not proceed through logical deduction, but rather is the result of an excellent organizational cooperation.
The companies' competitive success is relying upon the effective management of innovation. This is the reason that innovation has been the object of considerable academic study from a variety of perspectives.
2.Approaches to innovation
Maybe the most well-known concept of an innovator belongs to Schumpeter (1911; 1939). Schumpeter's entrepreneur introduces "new combinations" - new products, production methods, markets, sources of supply, or industrial...