This case won the Economics, Politics and Business Environment category at The Case Centre Awards and Competitions 2022. #CaseAwards2022
Who – the protagonist
Tech giant Apple is the protagonist as they enter the wearable computing market by launching the Apple Watch.
What?
A smartwatch gained much functionality and versatility from connection to a mobile phone which it used for wireless communication and interaction with a variety of apps. Other functionality embedded in a watch fell under the category of wearable technology, including a variety of sensors, gyroscopes, and specialised communications.
By 2014, the smartwatch industry had benefitted from market acceptance of wrist-based fitness and activity-tracking products. It had also benefitted from the expansion of functionality in traditional sports watches, and in location trackers produced by firms like Garmin.
Smartwatches, however, embodied a broader approach focused on applications and the Internet of Things (IOT).
Why?
Apple, of course, didn’t want to miss out on the ‘next big thing’ and they wanted to be the leader in the smartwatch market. According to Apple CEO, Tim Cook, the Apple Watch would “redefine what people expect from its category”.
Importantly, competition among smartwatch producers was inherently tied to competition among smartphone producers, as smartwatches and phones were so intrinsically linked.
With around five million smartwatches sold as of early 2015, just as Apple were about to enter the market, approximately 171 million smartphone units were predicted to ship in the whole of 2015. About 34 million consumers could be lured to switch from iPhone to Samsung or LG, or vice-versa.
A good smartwatch could be key in influencing smartphone brand choice.
Where?
Like with smartphones, but on a lesser scale, smartwatches were being bought around the world.
When?
It was on 9 September 2014 that Apple announced the launch of its smartwatch, marking its first new hardware product since the death of its former CEO Steve Jobs, and the introduction of the iPad in 2010.
Key quote
“Would you rather have 50 percent of a hundred-million-dollar market, or 10 percent of a one-billion-dollar market? That statement should help you understand why many of the existing players in the smartwatch market will be happy to welcome Apple into the fold.”
Forbes Magazine.
What next?
There was much anticipation as to whether Apple’s entry into the smartwatch market would see the category break into a phase of explosive growth.
Between 2013 and 2014 interest in wrist-based wearable technology increased from 28% to 42%, but there was a feeling that Apple coming into the fold could be a game-changer.
Potential benefits included strengthening public perceptions around smartwatches and wearable technologies, reducing costs and increasing availability of components, and much greater retail choice for consumers.
This is Lidija and Megan’s first Case Award, and second for Babson who won the Finance, Accounting and Control category in 2002.
Winning the award
Lidija and Megan said: “We are thrilled with The Case Centre Award for our Apple Watch (A) – the Launch case. For us, this award represents an acknowledgment and recognition of our work, and its relevance and usefulness in teaching microeconomics in the context of business education.
“We believe that economics education provides students with the necessary rigor and critical thinking skills that support excellence in decision-making. Using data and examples from real-world cases, where students are asked to solve business problems, facilitates integrated learning and improves effectiveness of economics education. It also reflects the types of multifaceted decisions students will be asked to make in their work.
“Apple Watch (A) – the Launch case was written with the goal to provide students with such an opportunity. We are grateful for the award and delighted to learn that instructors/students are using our case.”
Case popularity
Lidija and Megan continued: “It is a unique case, it demonstrates how microeconomics, and managerial economics concepts and tools, can be applied for strategic and operational decision-making. Although prepared with the MBA audience in mind, the case can be used for undergraduate courses in managerial economics, marketing, or strategy. The case can be deployed to the discussion of product features, consumer behaviour and market demand, relevant market, pricing strategy and elasticity, and competitive dynamics in markets.
“We think that this case meets especially well the needs of instructors whose goal is to teach students to apply rigorous data based economic thinking to decision-making. Economic concepts such as elasticity, price-volume relationship, etc., which are often treated very abstractly in economics courses, are applied to the context of a new product introduction in the wearable tech product category.
“Lastly, our case presents students with an opportunity to gain knowledge about complex problems with uncertain and ambiguous answers, gain confidence in using established thinking, tools and models in managerial economics to managerial decision-making regarding market size, product definition, competitive interaction in markets, etc.”
Writing the case
Lidija and Megan added: “Apple Watch (A) – the Launch is based on publicly available data. We had to do a lot of online searching to find all the information that we needed! The value of cases like these is to consolidate a lot of real-life data into learning materials that resonate with students.”
Case writing advice
They commented: “Apple Watch (A) – the Launch was born out of a final exam we wrote together. Our objective with our final exams is to gather data on a current and well-known product or service and market situation, and ask questions that let our students show what they learned in their coursework. We think that is why this case feels very complete as a teaching tool – it aims to enable students to exercise a wide variety of skills.”
Teaching the case
The duo explained: “First of all, this case is fun to teach. Students understand and can relate to the product and the experience of using smartwatches. The case discussion can lead in many interesting directions. Our student feedback suggests that students particularly like the opportunity to practice using economic tools to make decisions in an uncertain market. In our experience, students gain an appreciation of how economics can be used in addressing real business questions.
“Student discussion of this case always results in rich opportunities to explore questions regarding likely changes in predicted sales of the Apple Watch, the likelihood of price changes by competitors, and the recalibration of the model based on the actions of competitors and other changes in the market environment. As instructors facilitate these discussions, students are encouraged to address the central problem i.e. how to size an unknown market at a point of time - in an iterative way that builds knowledge along the way, improving students’ self-reflection and critical thinking skills.”
Final word
Lidija and Megan concluded: “Economists don’t usually prioritise case writing in their scholarly activity, so this demonstration of the relevance of economic approaches to business cases is extremely gratifying.”
The case
Who – the protagonist
Tech giant Apple is the protagonist as they enter the wearable computing market by launching the Apple Watch.
What?
A smartwatch gained much functionality and versatility from connection to a mobile phone which it used for wireless communication and interaction with a variety of apps. Other functionality embedded in a watch fell under the category of wearable technology, including a variety of sensors, gyroscopes, and specialised communications.
By 2014, the smartwatch industry had benefitted from market acceptance of wrist-based fitness and activity-tracking products. It had also benefitted from the expansion of functionality in traditional sports watches, and in location trackers produced by firms like Garmin.
Smartwatches, however, embodied a broader approach focused on applications and the Internet of Things (IOT).
Why?
Apple, of course, didn’t want to miss out on the ‘next big thing’ and they wanted to be the leader in the smartwatch market. According to Apple CEO, Tim Cook, the Apple Watch would “redefine what people expect from its category”.
Importantly, competition among smartwatch producers was inherently tied to competition among smartphone producers, as smartwatches and phones were so intrinsically linked.
With around five million smartwatches sold as of early 2015, just as Apple were about to enter the market, approximately 171 million smartphone units were predicted to ship in the whole of 2015. About 34 million consumers could be lured to switch from iPhone to Samsung or LG, or vice-versa.
A good smartwatch could be key in influencing smartphone brand choice.
Where?
Like with smartphones, but on a lesser scale, smartwatches were being bought around the world.
When?
It was on 9 September 2014 that Apple announced the launch of its smartwatch, marking its first new hardware product since the death of its former CEO Steve Jobs, and the introduction of the iPad in 2010.
Key quote
“Would you rather have 50 percent of a hundred-million-dollar market, or 10 percent of a one-billion-dollar market? That statement should help you understand why many of the existing players in the smartwatch market will be happy to welcome Apple into the fold.”
Forbes Magazine.
What next?
There was much anticipation as to whether Apple’s entry into the smartwatch market would see the category break into a phase of explosive growth.
Between 2013 and 2014 interest in wrist-based wearable technology increased from 28% to 42%, but there was a feeling that Apple coming into the fold could be a game-changer.
Potential benefits included strengthening public perceptions around smartwatches and wearable technologies, reducing costs and increasing availability of components, and much greater retail choice for consumers.
Author perspective
This is Lidija and Megan’s first Case Award, and second for Babson who won the Finance, Accounting and Control category in 2002.
Winning the award
Lidija and Megan said: “We are thrilled with The Case Centre Award for our Apple Watch (A) – the Launch case. For us, this award represents an acknowledgment and recognition of our work, and its relevance and usefulness in teaching microeconomics in the context of business education.
“We believe that economics education provides students with the necessary rigor and critical thinking skills that support excellence in decision-making. Using data and examples from real-world cases, where students are asked to solve business problems, facilitates integrated learning and improves effectiveness of economics education. It also reflects the types of multifaceted decisions students will be asked to make in their work.
“Apple Watch (A) – the Launch case was written with the goal to provide students with such an opportunity. We are grateful for the award and delighted to learn that instructors/students are using our case.”
Case popularity
Lidija and Megan continued: “It is a unique case, it demonstrates how microeconomics, and managerial economics concepts and tools, can be applied for strategic and operational decision-making. Although prepared with the MBA audience in mind, the case can be used for undergraduate courses in managerial economics, marketing, or strategy. The case can be deployed to the discussion of product features, consumer behaviour and market demand, relevant market, pricing strategy and elasticity, and competitive dynamics in markets.
“We think that this case meets especially well the needs of instructors whose goal is to teach students to apply rigorous data based economic thinking to decision-making. Economic concepts such as elasticity, price-volume relationship, etc., which are often treated very abstractly in economics courses, are applied to the context of a new product introduction in the wearable tech product category.
“Lastly, our case presents students with an opportunity to gain knowledge about complex problems with uncertain and ambiguous answers, gain confidence in using established thinking, tools and models in managerial economics to managerial decision-making regarding market size, product definition, competitive interaction in markets, etc.”
Writing the case
Lidija and Megan added: “Apple Watch (A) – the Launch is based on publicly available data. We had to do a lot of online searching to find all the information that we needed! The value of cases like these is to consolidate a lot of real-life data into learning materials that resonate with students.”
Case writing advice
They commented: “Apple Watch (A) – the Launch was born out of a final exam we wrote together. Our objective with our final exams is to gather data on a current and well-known product or service and market situation, and ask questions that let our students show what they learned in their coursework. We think that is why this case feels very complete as a teaching tool – it aims to enable students to exercise a wide variety of skills.”
Teaching the case
The duo explained: “First of all, this case is fun to teach. Students understand and can relate to the product and the experience of using smartwatches. The case discussion can lead in many interesting directions. Our student feedback suggests that students particularly like the opportunity to practice using economic tools to make decisions in an uncertain market. In our experience, students gain an appreciation of how economics can be used in addressing real business questions.
“Student discussion of this case always results in rich opportunities to explore questions regarding likely changes in predicted sales of the Apple Watch, the likelihood of price changes by competitors, and the recalibration of the model based on the actions of competitors and other changes in the market environment. As instructors facilitate these discussions, students are encouraged to address the central problem i.e. how to size an unknown market at a point of time - in an iterative way that builds knowledge along the way, improving students’ self-reflection and critical thinking skills.”
Final word
Lidija and Megan concluded: “Economists don’t usually prioritise case writing in their scholarly activity, so this demonstration of the relevance of economic approaches to business cases is extremely gratifying.”
