The i-watch is a great idea--limited by its screen-size. As Apple starts competing with itself, it will start feeding on itself. That is a sure sign of the impending decline. Remember IBM? Remember Xerox? Remember the Buick Arrow?
APPL i-TV? Great idea. Now we need content! Cook better look to supply his own content or be at the mercy of the market.
Remember my article from 11 February 2013
Idea: Apple and Facebook buys AOL. Time Warner CNN
***************************************
This is not a tech problem. This is a B-School Problem
At First You are Alone. Then...
- At first, you put out an awesome product
- You capture market share
- You are the darling
- You instigate competition
- Competitors erode market share
- You must innovate
- You do
- They must innovate
- They do
When Something New Comes Out
There are hundreds of copycats.
What happens?
- Some companies fail
- Some companies merge
- Some companies acquire
- New companies emerge
- Some companies innovate
- Some companies succeed
- Other companies fail
- You lose market share
- You must innovate or evolve
Consumer Fatigue
People have brand loyalty. I used to use the toothpaste that "tastes good so they brush longer."
Then I changed brands.
For a long time, people have assumed that consumers want choice. That is what they sell. "We offer you choice." Researchers have concluded that consumers want closure. Apple gives that. People are happy. They have an i-Pod, an i-Phone, an i-Pad, or they have a Mac Pro. What happens? Consumer fatigue. Competitors erode the market.
Institutional Memory
This has been discussed. If you really need to know more, Google it!
Institutional Amnesia
Institutional Amnesia is not about the individuals in the organisation. It is about the organisation itself. Therefore (.∙.):
- IBM®
- Xerox®
Where are they now? They are still around, but....
What we have is a case where mistakes should be a guidepost, not a hitching post. Still, we see institution after institution make the same mistakes again and again. Witness, JCP. Ron Johnson wanted the consumers to buy what he wanted to sell. Instead, he should have sold what the consumers wanted to buy. Johnson: everyday low pricing. The Consumer: coupons and discounts.
Rebranding
I will be brief. The Bentley. Then, a Rolls Royce without the grille. The Rolls Royce for the gentleman who eschewed the ostentatious. Low key displays of wealth. Not anymore.
Now, the Bentley is the Pop Star Car. The turbocharged convertible Bentley is for the crowd that embraces a lifestyle of loud noises, bright colours, and shiny things.
Apple can innovate
Apple can come up with new products. The i-TV. The i-Watch. They will:
- At first, you put out an awesome product
- You capture market share
- You are the darling
- You instigate competition
- Competitors erode market share
- You must innovate
- You do
- They must innovate
- They do
Evolve
Apple is at the point now where they must grow, evolve, expand.
This is the reason why I wrote the article APPL + FB ought to buy AOL, Time Warner, CNN.
http://sidestreetjournal.blogspot.com/2013/02/idea-appl-fb-buy-aol-time-warner-cnn.html
They will receive
- Publishing
- Cable
- Movies
- A Global News Network
This will enable the pair to:
- Invest Cash
- Monetise Facebook
- Bring added value to the i-Pad and the i-Phone with movies
- Bring added value to the i-TV with "cable access"
- Access One Billion users world-wide
- Provide Global News to Global Users
- And create opportunities not yet thought of or invented
Still, if you're not buying into the premise, there is still a lesson to be learned.
Warmest regards,
Slim
Slimfairview@yahoo.com
PS. If you find anything I've said to be helpful, please do not hesitate to send me a really tricked-out Mac Bool and to tuck a few dollars into the envelope along with the thank-you note. Slim
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Bob Asken
Box 33
Pen Argyl, PA 18072
Copyright © 2013 Bob Asken
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