CASE STUDY
Real Life
Simon Says:
“lessons from
the big end of
town”
Sexy
Innovation,
Quality, Design,
Differentiation,
Uniqueness
Cool
APPLE INC. - STEVE JOBS
Sometimes when you innovate, you make mistakes. It is best to admit them quickly and get on with improving
your other innovations - Steve Jobs
9th May 2011 and Apple Inc has been
2. All in a name: In 2007 Apple Computers Inc
awarded the world’s most valuable brand
changed its incorporated name to just Apple
according to BrandZ. Valued at $153.3 billion,
Inc. The change reflected its booming
it has increased by a staggering 84% in the
mobile device market with the introduction
last year, and an even further mind blowing
of iPod. Later iPhone & iPad. By 2010, over
859% since 2006.
60% of Apple Inc’s revenues come from
Here is a brief look into that enigma
iPhone & iPad. This was a strategic move
company we all know... Apple Inc. There are
for the benefit of Apple Inc’s customers,
many lessons to be learned from the good and
their employees and the market. It made
not so good fortunes of this 30+ year old
clear that the company was not just a
company. I’ve picked what I think are some of
computer company, but a serious player in
the most relevant for budding entrepreneurs
consumer electronics. What effect if any
and small businesses. Enjoy this look into one
does your name have on your customers,
of the 21st Centuries most exciting business’
employees, the market?
1. Facts & Figures @ May 2011:
3. The guy in charge: The current CEO is co-
• Established April 1st 1976
• Incorporated January 3rd 1977
founder Steve Jobs. Apple has had several
• Valued at $292 Billion May 2011
• Employees 46,000+ full time staff
match or even come close to the success
• Annual Revenues in excess $65 Billion
• Over 300 retail outlets in 10 countries
1997 Jobs was brought back into Apple as
• Worlds most admired company 2008,
2009, 2010, 20?? Fortune Magazine.
CEO’s, none of them have been able to
You can’t just ask customers
what they want and then try and
give that to them. By the time
you have got it built they will
want something else - Steve Jobs
that Jobs has helped create at Apple. In
CEo and since then, Apple has performed
overwhelmingly well. It raises the question
about the reliance of Apple Inc on the...
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Continued over page
Jobs announced his leave of
absence, siting the reason “so he
could focus on his health”.
... leadership and direction of Steve Jobs.
excellence came at significant cost in the early
days of the companies history. It’s this
commitment though over some 30 years that
has lead to the last 6 years of domination and
exponential growth across all of its product
Can Apple Inc continue to perform as brilliantly
lines. What long term commitments have you
under the control of someone else? Would it
made that are similar to Apple? Do you value
continue to do all the things it does so well that
quality over quantity? Is this easily recognised
have driven its success with someone else in
and acknowledged by your customers,
charge? Steve Jobs has not been without
competitors and the market? Have you
illness recently. Over the last 5 years
committed yourself to long term success or are
speculation about Jobs health has been
you still chasing short term profits?
iMOBILE
prolific. In 2009 he had a liver transplant.
January 2011 and Jobs has taken a leave of
5. Tribes and followers
absence with Tim Cook assuming the reigns for
Almost no other company can match the
the time being. Only time will tell about Jobs
passionate tribe of loyal fans and customers
health and the health of Apple Inc under the
that Apple has created from day 1. This rivalry
leadership of someone else. What plans do you
has formed a culture around the Apple Inc
have for a successor? Who can run things so
brand and its products. It even spawned a 66-
you can take a leave of absence to focus on
part series of television commercials that
health just like Jobs?
depicted the stereo typical user of a “Mac” and
the nemesis “PC” user. Love it or hate it, Apple
4. Quality over Quantity
like no other consistently enrolls and inspires
Since the very beginning Apple’s commitment
its followers, its customers to get excited about
has been to quality over quantity. They have
the design, simplicity and functionality of its
preferred to design and build products that are
products. What does your business do to foster
simpler, better looking and more reliable than
a culture of followers or loyal tribes that believe
their competitors. The most well known
in you and your products/services? How do you
example of this is their long running rivalry with
innovate and consistently deliver at a high level
Microsoft and its operating system for
to maintain this loyalty? How do use this in your
PC’s.This stance and commitment to
marketing?
click to watch
75%+ Revenues from
iProducts
iPod, iPad & iPhone
account for in excess of
75% of Apple Inc’s
revenues from normal
operations.
66-Part
Television
comercials
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WHAT IS IT ABOUT APPLE>
Apple is great at figuring out how to invent cool
technology (and) then making it wonderfully
easy to use - Jobs Wall Street Journal 2004
Apple Inc has established its formula for
Think
Different
model, floor stock, the price
success. Its founders, its leader, its people and
is NOT DISCOUNTED or varied.
customers continue to think differently.Apple
This includes buying online or
designs cool, sexy, easy to use devices that
direct from Apple itself. Is it any
are unrivaled in quality and value. Its
wonder the company is enjoying
sustainable competitive advantage has
profit margins in excess of
resulted in it becoming the number 1 valued
double that compared to its
brand in the world. For such a young company
competitors. For 30 years,
its an exciting prospect to consider where
Apple has taught its customers,
Apple Inc could find itself in another 30 years.
its re-sellers and the market that
the price for an Apple product is
People
Respected and admired leadership,
fair, reasonable, wont be changed and
represents outstanding value for the quality,
design and functionality. How does your
3. What actions will you now take to
replicate some of the success Apple Inc
has created for itself?
unrivaled products and innovation. It’s no
pricing compare? Are you in a market where
__________________________________________
wonder Apple Inc enjoys an abundance of the
you can command the price paid for your
__________________________________________
worlds highest quality candidates across all
goods/services? Or are you at the mercy of
__________________________________________
fields queuing up to gain employment. The
your customers and competition because you
__________________________________________
innovative incentives and work practices equal
lack differentiation?
__________________________________________
that of its products. Making Apple Inc one of
Now it’s your turn...
the most enjoyable and prestigious places to
work in the world. Its employees are proud of
their company and will go above and beyond
1. What lessons have you learned from
thinking about Apple Inc?
Simon Says...
Apple Inc since day 1 has had a clear
to serve it. What are you actively working on to
__________________________________________
vision and purpose about itself. This flows
make your business a desirable place to work?
__________________________________________
brilliantly through tis marketing message, its
What makes your business environment so
__________________________________________
products, its innovation and continuous
much better to work in? What do your
__________________________________________
improvement. Its devotion to quality of design
employees enjoy the most about working for
__________________________________________
and functionality are rare. Its ability to stir
emotion in its customers exciting. Apple Inc is
you?
2. What lessons can you directly apply
Pricing
If you have purchased an Apple Product
lately, you would have noticed that the price
you paid for it was the RRP. Recommended
retail price.That is because no matter where
you buy it from, unless it’s a run out or demo
More about Apple Inc
to your business?
Apple Keynote Presentation here
In my opinion it is only just now entering into
__________________________________________
the beginning of its dominate success. If you
__________________________________________
enjoyed this case study, please pass it on. If
__________________________________________
you would like to know more about other case
__________________________________________
studies or want to ask me a question please
__________________________________________
email me at simon@buybuildsell.com.au
Cool stuff
• History of iTunes
Steve Jobs talks at TED
a 21st century company, only 30 years young.
NEXT MONTH
• Video History of Apple unofficial video
• Apple Inc Presentations & Audio iTunes
Apple Inc Story & Timeline here
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Harvard Business Review - Apple
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