https://blogs.ubc.ca/jacobalvarezdetoledo/2015/10/04/let-the-road-race-begin/
JACOB (COBO) ALVAREZ DE TOLEDO’S
In his blog Jacob talks about Apple and how it is rumored to expand its market into automotive industry by 2019. Jacob mentions that Apple uses disruptive innovation strategy, which directly relates to Comm101 class 14. As we see a disruptive innovation is an innovation that creates a new market and value network and eventually disrupts an existing market and value network, displacing established market leaders and alliances. Indeed, currently, Apple’s gross profit margins on their products hovers around forty per cent, almost double that of one of the most profitable companies in the automotive industry.
If they really wanted to get into the smart-car business, they would just buy other companies and work with them to add Apple’s intelligence and services to this vehicle. Clearly, they have the money to do this if it was strategic to their future but I believe they are there to help the company create a radical smart/intelligent connected-car that could be licensed to all car companies or be part of an integrated solution.
https://en.wikipedia.org/wiki/Disruptive_innovation
