Innovation Management

9. Why does Steve Jobs believe that imitators of the iPod like Dell do not pose a threat?

Steve Jobs believe that imitators of the iPod like Dell do not pose a threat because the iPod is not creating but iPod selling more chips to market. However, Dell is not known for innovation. Dell has limited itself to few product categories outside of its core computer hardware. Dell's sales of items such as printers, network switches, projectors, and USB storage devices have been limited. However, due to the slowing computer business, and Apple's success in consumer products, Dell is diversifying its product line into consumer electronics. Dell has begun to branch out into other areas by launching its own music download store, digital music jukebox, and wireless personal digital assistant, and it is even going so far as to market flat-panel televisions. Apple, via its iPod and iTunes digital music line and other products, such as iPhoto and iMovie, has shown that music, movies, and photos are a natural extension for the computer user.

Apple maintains a Web site that allows customers to browse and find the latest products available. Apple recognizes the need to have previous customers revisit the site to make future purchases and is capitalizing on this through iTunes: music that can be purchased only at Apple's Web site and downloaded to its iPod. Dell, in an attempt to replicate Apple's success, has entered this realm of music with its Jukebox software, whereby customers can download music for a fee or listen to Internet radio at no charge. However, the iPod digital music player and the iTunes music site were clearly leading in the digital music arena in 2004.

Dell that have no great reputation as innovations but a track record of winning by paying a price-driven, low-margin volume game was dismissed. The iPod has already been improved in several times, Steve Jobs said, and will keep improving in ways that keep it ahead of the pack. (He wouldn’t get specific.) “For...