Apple's Strategy

Steve Jobs is known for creating revolutionary products and launching them like a box office thriller. The movie producers should learn a few tips from him! The launch of IPhone marked a new milestone in the history of tech products. Now, it is the time for IPad. What is IPad? In the last few years, the world has seen that the technological gap between a phone and a computer is reducing. Earlier people were satisfied with a basic phone which can be used to communicate only. Gradually the products’ expected features like internet, WAP and data processing abilities crept into the basic features. However, mobile manufacturers could not break the ice to think further, which Apple has done. Apple is trying to create a new segment where people want a multipurpose mobile device through which all basic needs of a mobile and a computer can be experienced with ease. IPhone implemented this unique ‘Filling the Gap’ strategy successfully. It seems that Apple has made this ‘Filling the Gap’ strategy it’s unique selling proposition. Is it sustainable? The sustainability of a strategy depends on the entry barrier for competitors. If the entry barrier is low then apart from the first mover advantage, Apple will have nothing. It will not be able to milk this newly created segment for a long time. One feature which is valuable about this product is that more than one lakh applets can be accessed through this device. These features are currently used in Iphones and IPad is compatible with it. So, the product is different but the features are developed on a common platform which can be used only on Apple products. It reminds me of the era when Apple tried to rule the market with Macs which could use only Apple’s applications and software. This strategy of Apple decades ago, did not last much because the competitors could sniff it and Microsoft and IBM reaped the benefits. Is it that this time the competitors are not aware or Apple has done its homework well enough. Apple has penetrated deep enough in most of the developed markets with its platform featured products IPhone, iTouch and IPod. Gradually they are moving back towards the PC in terms of features. WOW! Steve Jobs seems to implement his old strategy well enough to reach the levels of Microsoft with huge strategic advantages. Analysts say that IPad will not be able to replace the PC/Laptop market but you do not know what Apple is all for. It will not be surprising if Steve introduces an iPC which will run on the same platform used for iPod, iPhone and iPad.

Rogues

Also read :

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Wrigley traveled from Philadelphia to Chicago in the spring of 1891. He was 29 years old, had $32 in his pocket and possessed endless enthusiasm.

His started his career trying to sell Wrigley’s Scouring Soap, which was produced in his father’s factory. Wrigley offered free gifts to merchants to increase sales, knowing that such freebies would induce his customers to promote Wrigley’s soap. One of these freebies was baking powder. When baking powder proved to be more popular than soap, Wrigley switched over to the baking powder business.

One day in 1892 Wrigley got the idea of offering two packages of chewing gum with each can of baking powder. The decision proved fateful, with the gum eventually overtaking the baking powder in popularity. Wrigley responded by reorienting the company to manufacture chewing gum.

Wrigley took his products to the Chicago Expo and soon people around the world had his gum in the palm of their hand. The company currently sells its products in over 180 countries and operates more than 10 factories all over the world.

This is how worlds most popular Chewing Gum brand was created. It is also true that every famous brand has a story behind it. Be it Coca Cola, Pepsi, Tata, IBM or Apple.

Rogues

China, a communist country, started its economic turnaround with the concept of small organizations like Town and Village enterprises in the 70s. Many reports say that their infrastructure was the key to their miraculous growth. However, if we compare the infrastructure levels of India with that of China in early 80s, we find that the length of roads, expressways and railway tracks were all higher in India than China. During this period, China had only one resource called human resource or HR.

In the business cycle, all developed economies of the world have started with small innovations, developments and small organizations. Which grew by leaps and bounds with continuous improvement in process and technology. In the 90s, a general perception creeped in to the minds of people that Big is better and thus every country and organization competed with themselves to achieve the “Biggest Status”. Forbes list of richests, biggests and highests fueled this aspiration like a virus. Highest building, largest workforce, biggest company, largest plant, richest CEO and all sorts of permutation and combination.

Now, with the successful launch of TATA NANO (Smallest/Cheapest Car), TATA Swach (Cheapest water purifier: Threat to bottled water industry), micro financing products and other nano products, the “B” word seems to be dampening. TATA with its bottom of the Pyramid approach is poised to revolutionize the way world thinks. As C.K. Prahlad  said in his theory that the real money is residing in with the people at the bottom. TATA is also planning to launch its NANO housing model where in people can get cheap affordable accommodation even during housing bubbles bursting everywhere.

In contrast Reliance has lived through its glorious days by building the biggest complexes and biggest chains. Very often people forget that every big thing is build on the platform of small products. Like the mobile revolution by Ambanis which made mobile affodable to every Indian from top to bottom of the pyramid. IBM is going small by targeting Small and medium sized companies. FMCG companies have experienced the growth by launching the smallest SKUs (shampoo/oil in Sachets).

You name the industry and you would realize that small is big. Is it the magical tool which communism invented centuries ago or is it the magical tool which capitalists are exploiting?

Rogues