CASE STUDY

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Innovation, Quality, Design, Differentiation, Uniqueness

Simon Says:
lessons from the big end of town

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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 awarded the worlds most valuable brand according to BrandZ. Valued at $153.3 billion, it has increased by a staggering 84% in the last year, and an even further mind blowing 859% since 2006. Here is a brief look into that enigma company we all know... Apple Inc. There are many lessons to be learned from the good and not so good fortunes of this 30+ year old company. Ive picked what I think are some of the most relevant for budding entrepreneurs and small businesses. Enjoy this look into one of the 21st Centuries most exciting business 1. Facts & Figures @ May 2011: Established April 1st 1976 Incorporated January 3rd 1977 Valued at $292 Billion May 2011 Employees 46,000+ full time staff Annual Revenues in excess $65 Billion Over 300 retail outlets in 10 countries Worlds most admired company 2008, 2009, 2010, 20?? Fortune Magazine. 2. All in a name: In 2007 Apple Computers Inc changed its incorporated name to just Apple Inc. The change reected its booming mobile device market with the introduction of iPod. Later iPhone & iPad. By 2010, over 60% of Apple Incs revenues come from iPhone & iPad. This was a strategic move for the benet of Apple Incs customers, their employees and the market. It made clear that the company was not just a computer company, but a serious player in consumer electronics. What effect if any does your name have on your customers, employees, the market? 3. The guy in charge: The current CEO is cofounder Steve Jobs. Apple has had several CEOs, none of them have been able to match or even come close to the success that Jobs has helped create at Apple. In 1997 Jobs was brought back into Apple as CEo and since then, Apple has performed overwhelmingly well. It raises the question about the reliance of Apple Inc on the...

You cant 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

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Jobs announced his leave of absence, siting the reason so he could focus on his health.
... leadership and direction of Steve Jobs. Can Apple Inc continue to perform as brilliantly under the control of someone else? Would it continue to do all the things it does so well that have driven its success with someone else in charge? Steve Jobs has not been without illness recently. Over the last 5 years speculation about Jobs health has been prolic. In 2009 he had a liver transplant. January 2011 and Jobs has taken a leave of absence with Tim Cook assuming the reigns for the time being. Only time will tell about Jobs health and the health of Apple Inc under the leadership of someone else. What plans do you have for a successor? Who can run things so you can take a leave of absence to focus on health just like Jobs? 4. Quality over Quantity Since the very beginning Apples commitment has been to quality over quantity. They have preferred to design and build products that are simpler, better looking and more reliable than their competitors. The most well known example of this is their long running rivalry with Microsoft and its operating system for PCs.This stance and commitment to

excellence came at signicant cost in the early days of the companies history. Its 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 lines. What long term commitments have you made that are similar to Apple? Do you value quality over quantity? Is this easily recognised and acknowledged by your customers, competitors and the market? Have you committed yourself to long term success or are you still chasing short term prots? 5. Tribes and followers Almost no other company can match the passionate tribe of loyal fans and customers that Apple has created from day 1. This rivalry has formed a culture around the Apple Inc brand and its products. It even spawned a 66part series of television commercials that depicted the stereo typical user of a Mac and the nemesis PC user. Love it or hate it, Apple like no other consistently enrolls and inspires its followers, its customers to get excited about the design, simplicity and functionality of its products. What does your business do to foster a culture of followers or loyal tribes that believe in you and your products/services? How do you innovate and consistently deliver at a high level to maintain this loyalty? How do use this in your marketing?

iMOBILE

click to watch

75%+ Revenues from iProducts

iPod, iPad & iPhone account for in excess of 75% of Apple Incs revenues from normal operations.

66-Part
Television comercials

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WHAT IS IT ABOUT APPLE>

Apple is great at guring 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 success. Its founders, its leader, its people and customers continue to think differently.Apple designs cool, sexy, easy to use devices that are unrivaled in quality and value. Its sustainable competitive advantage has resulted in it becoming the number 1 valued brand in the world. For such a young company its an exciting prospect to consider where Apple Inc could nd itself in another 30 years. model, oor stock, the price is NOT DISCOUNTED or varied. This includes buying online or direct from Apple itself. Is it any wonder the company is enjoying prot margins in excess of double that compared to its competitors. For 30 years, Apple has taught its customers, its re-sellers and the market that the price for an Apple product is fair, reasonable, wont be changed and represents outstanding value for the quality, design and functionality. How does your pricing compare? Are you in a market where you can command the price paid for your goods/services? Or are you at the mercy of your customers and competition because you lack differentiation? 3. What actions will you now take to replicate some of the success Apple Inc has created for itself? __________________________________________ __________________________________________ __________________________________________ __________________________________________ __________________________________________

Think Different

People
Respected and admired leadership, unrivaled products and innovation. Its no wonder Apple Inc enjoys an abundance of the worlds highest quality candidates across all elds queuing up to gain employment. The innovative incentives and work practices equal that of its products. Making Apple Inc one of the most enjoyable and prestigious places to work in the world. Its employees are proud of their company and will go above and beyond to serve it. What are you actively working on to make your business a desirable place to work? What makes your business environment so much better to work in? What do your employees enjoy the most about working for you?

Now its your turn...

1. What lessons have you learned from thinking about Apple Inc? __________________________________________ __________________________________________ __________________________________________ __________________________________________ __________________________________________ 2. What lessons can you directly apply

Simon Says...
Apple Inc since day 1 has had a clear vision and purpose about itself. This ows brilliantly through tis marketing message, its products, its innovation and continuous improvement. Its devotion to quality of design and functionality are rare. Its ability to stir emotion in its customers exciting. Apple Inc is a 21st century company, only 30 years young. 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

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 its a run out or demo

to your business? __________________________________________ __________________________________________ __________________________________________ __________________________________________ __________________________________________

More about Apple Inc

Steve Jobs talks at TED Apple Keynote Presentation here Apple Inc Story & Timeline here Harvard Business Review - Apple

Cool stuff
History of iTunes Video History of Apple unofcial video Apple Inc Presentations & Audio iTunes

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