Avinash Kaushik - world leader in web business optimisation
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Apple case study / Apple business strategy
The Apple case study was published on April 2008. It focuses on how how Apple innovate and differentiate their business through the control of Steve Jobs. It doesn't cover online marketing approaches.
- Read Wired Apple case study
From an E-commerce strategy perspective, this case is interesting since it describes 5 "Silicon Valley approaches" which are characteristic of marketing startup e-businesses. These are then contrasted with the Apple approach:
Approach 1. COOPERATE
Valley Rule Embrace open platforms. Software should be decoupled from hardware so users can access any program or data from any device. Example: Google's Android, an operating system that will run on a variety of handsets from different manufacturers.
Apple Rule Design software to work on your own hardware — and not on anyone else's. The OS X experience is made only for the Mac; iPhone apps function only on iPhones. And customers don't seem to mind. Apparently, they're willing to trade freedom for a kick-ass product.
2. COMMUNICATE
Valley Rule Tell your fans what you're up to so they feel a connection to your company. Hiring difficulties? New strategies? Digestive problems? Blog 'em! Customers will feel more invested and more loyal. Plus, their comments could give you some good ideas.
Apple Rule Never talk to the press. Shut down rumor blogs. Threaten to sue children who send you their ideas. Never leak product news until you're ready to announce it. Then use that discipline to create buzz and win coverage with every announcement.
3. PLAY NICE
Valley Rule Don't exploit your market-leader status. Software should compete on its merits, not its ability to shut out rivals. Microsoft earned an antitrust suit and decades of ill will by muscling PC makers into bundling its operating system and browser onto their machines.
Apple Rule Hardball tactics rule! Every Mac is preloaded with iTunes, which becomes the user's default music program. And most iTunes purchases can be played only on iPods, creating a closed loop that has proven tough for competitors — and music labels — to challenge.
4. LOVE YOUR CUSTOMERS
Valley Rule Make sure to lavish affection on your clients, and try to ensure that every one of them has a positive experience. Anyone can post a withering review on Yelp or Amazon, so you can't afford to let a single complaint go unaddressed.
Apple Rule Please yourself, not your fans. Release iMacs without floppy drives. Release MacBook Airs without optical drives. Cut the price of an iPhone by $200 two months after its introduction; when early adopters complain, offer them a $100 gift certificate.
5. CODDLE YOUR EMPLOYEES
Valley Rule Since the best ideas bubble up from within the ranks, encourage autonomy by allowing workers free time to focus on their personal projects. Also, shower them with perks like free food and massages to make them feel special.
Apple Rule Motivate through fear. Don't be afraid to scream. Threaten to fire them. Withhold praise until it's truly deserved. Go ahead and bring them to tears. As long as you can inspire them with your sense of mission, they'll consider this the best job they've ever had.
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