| Product life-cycles are shortening, with
| |
| | very well. Its amazing recovery owes a
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| new products hitting the market faster
| |
| | lot to its out-of-the-blue dominance of
|
| and faster. At the same time, consumers
| |
| | portable digital music players, a product
|
| are spending more time on the Internet
| |
| | category that barely existed in 1997. In
|
| looking for products and services, and
| |
| | the first quarter of 2006 Apple shipped
|
| seeking out suppliers who can deliver
| |
| | 8.5 million iPods, some 60% more than in
|
| them with maximum value at a competitive
| |
| | the same quarter of 2005, taking total
|
| price. This is a tough, challenging
| |
| | iPod sales to 50 million worldwide since
|
| situation that should scare complacent
| |
| | 2001. With iPod sales bringing in $1.7
|
| businesses. But it offers exciting
| |
| | billion in Apple's second quarter, the
|
| opportunities for smart business people
| |
| | iconic music player now generates more
|
| who recognize the need to understand the
| |
| | money than Mac computers at $1.57
|
| external business environment and have
| |
| | million. And now that it has started
|
| the internal processes to enable them to
| |
| | producing Macs with an Intel CPU, Apple
|
| quickly turn changes in the market into
| |
| | is expecting the "halo effect" of the
|
| new products and services.Rapid History
| |
| | iPod to lure Windows users into buying
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| of Rapid Growth
| |
| | Macintosh computers.That's not all.
|
| Back in the 1980s the notion of an
| |
| | Apple, who's product dominates the market
|
| Information Superhighway was touted
| |
| | through their approach to partnering and
|
| around the mainstream media. Over the
| |
| | brand development, also dominate another
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| next few years this mind-boggling notion
| |
| | category that didn't exist in 1997 -
|
| went from a science fiction scenario to a
| |
| | downloadable music. In the space of just
|
| slow but functioning reality.A few
| |
| | over two years, since Apple's iTunes
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| far-sighted manufacturing businesses
| |
| | Music Store was launched, broadband
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| installed fast always-on connections and
| |
| | Internet users worldwide are now spending
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| some created websites, although most of
| |
| | more than $1bn a year on song downloads.
|
| them were little more than online
| |
| | Apple has sold more than 600 million
|
| brochures. A few also saw the benefits
| |
| | songs in two and a half years, and in the
|
| of e-mail but most dismissed the
| |
| | US iTunes ranks as one of the leading
|
| flexibility of the Internet as irrelevant
| |
| | music stores alongside major
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| to their business. Many invested
| |
| | bricks-and-mortar retailers. It has
|
| significant amounts in alternative
| |
| | also added Podcasts and Video downloads
|
| 'fixed' technology that quickly became
| |
| | to its offering.Industry analysts reckon
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| outdated such as EDI (Electronic Data
| |
| | that iPod and iTunes have not only added
|
| Interchange) networks that connected two
| |
| | to Apple's bottom line, they have also
|
| companies through a single dedicated
| |
| | given a significant boost to the
|
| line. Even the mighty Microsoft seemed
| |
| | company's computer brand. In short,
|
| to regard the Internet as a sideshow; it
| |
| | Apple's fortunes have been turned around
|
| allowed Netscape to become the dominant
| |
| | by music, yet music wasn't mentioned in
|
| Internet browser of the early Internet
| |
| | any of the 101 ways to save Apple in
|
| and well into the mid 1990s before
| |
| | 1997. There are few magazines more
|
| realizing that it was missing a trick.In
| |
| | switched on than Wired magazine yet
|
| many respects consumers were quicker to
| |
| | nobody there suggested music as a route
|
| embrace the Internet, even with the
| |
| | to salvation - it was down to the insight
|
| limitations of dial-up access. In 1990
| |
| | of the Apple management and their ability
|
| there were around 2.6 million people
| |
| | to size up an opportunity and deliver a
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| using the Internet, with 2 million of
| |
| | solution which saved the day.Before
|
| them in the United States . By the end of
| |
| | iTunes and the iPod, the music industry
|
| 1997, there were 99.96 million Internet
| |
| | had been fighting a rearguard action
|
| users worldwide . Two years later there
| |
| | against illegal file sharing - millions
|
| were 280 million worldwide, and within
| |
| | of people copying each other's music for
|
| another two years it almost doubled to
| |
| | free through peer-to-peer systems such as
|
| 530 million, with 16% of those accessing
| |
| | Napster and Kazaa. For many analysts,
|
| the Internet wirelessly. In 2005 global
| |
| | the music industry was "broken" with no
|
| Internet users tipped over the magic
| |
| | prospect of fixing itself. Its only
|
| billion to reach 1,080,000,000 users .
| |
| | recourse was to track down and prosecute
|
| It's largely thanks to consumer uptake
| |
| | file-sharers. Then along came Apple, a
|
| that companies have been forced to
| |
| | complete outsider, to show the way
|
| recognize how the Internet can be used as
| |
| | forward and put together the first site
|
| both a marketing and a sales channel to
| |
| | to offer a really wide range of legal
|
| reach huge marketsBecause of the speed of
| |
| | music downloads.Not bad for a company
|
| this change, many businesses, and not
| |
| | that looked ready to die in 1997.So What?
|
| just manufacturers, have not been able to
| |
| | At the heart of the Apple story were two
|
| keep up with developments - missing out
| |
| | new technologies - MP3 (or similar music
|
| on opportunities to find new
| |
| | compression systems) and broadband
|
| collaborative partners, actively market
| |
| | Internet; without them none of its
|
| their products or develop new services
| |
| | success would have happened. More
|
| for customers. A wide range of business
| |
| | importantly, Apple's management were able
|
| have seen market share (and profits)
| |
| | to recognize that their experience in
|
| slump as products become outdated faster
| |
| | developing digital technologies would
|
| than new products and services are
| |
| | enable them to rapidly break into digital
|
| introduced. They have seen costs slashed
| |
| | music - and they used this expertise to
|
| by competitors producing in lower-cost
| |
| | market and launch a leading edge product
|
| countries and buying low cost
| |
| | before their competitors were able to
|
| technologies, as well as the introduction
| |
| | recognize the change that was
|
| of alternative products and
| |
| | coming.Broadband and MP3 enabled Apple to
|
| technologies.According to one
| |
| | go from nowhere in the music industry to
|
| e-manufacturing site, the critical issues
| |
| | become a highly-influential industry
|
| that need to be faced up to include:-
| |
| | player in a few short years. The
|
| Reduced consumer switching costs with the
| |
| | underlying technologies have existed for
|
| Internet making it easier for an existing
| |
| | some time - high-speed Internet, file
|
| customer to find, contact and collaborate
| |
| | compression codecs and
|
| with competitors- Rapid comparison of
| |
| | ever-higher-capacity, smaller data
|
| prices, particularly low value or
| |
| | storage systems. Yet any industry
|
| commodity items, allowing customers to
| |
| | analyst forecasting this scenario back in
|
| drive costs down faster than companies
| |
| | the late 1990s would have been dismissed
|
| can improve performance- An increasing
| |
| | as a dotcom-crazy fantasist - but that
|
| number of customers are placing their
| |
| | did not stop the Apple management.For
|
| requirements and posting tender
| |
| | decades big music companies dominated the
|
| opportunities via the Internet, making it
| |
| | music business. They looked after the
|
| likely that organisations who are not
| |
| | promotion of the artists and their music,
|
| linked to portals relevant to their
| |
| | and the distribution of their LPs and
|
| industry will miss out on sales
| |
| | later their CDs. It was only through
|
| opportunities- The Internet provides
| |
| | them that artists could reach big
|
| opportunities for enhanced customer
| |
| | audiences. But once the Internet was
|
| service (such as online updates for
| |
| | established and file-sharing was
|
| delivery etc) which in turn allows for
| |
| | flourishing, the big music companies
|
| organisations to differentiate themselves
| |
| | could see their grip on music
|
| more easily- Recognising that there will
| |
| | distribution slipping.All this had
|
| be a need to invest as much in developing
| |
| | serious implications for all the
|
| brand and services as there will be in
| |
| | traditional players who are between the
|
| leading edge production technology to
| |
| | artists who create products, and their
|
| enable businesses to 'stand out'- Lastly,
| |
| | audiences who consume them. And beyond
|
| the Internet is driving the desire for
| |
| | the music business it has serious
|
| consumers to place smaller orders, in
| |
| | implications for any business who can
|
| shorter timescales whilst expecting a
| |
| | size up a change in the market. Apple's
|
| greater number of options - something
| |
| | innovation was recognizing the shift from
|
| which manufacturers with inefficient
| |
| | physical to digital product would (and
|
| systems will find significantly increases
| |
| | could) continue and that they were well
|
| their production costs and reduces
| |
| | placed to capitalize on it.The
|
| profitsOpportunity Bites
| |
| | iPod+iTunes case history shows that there
|
| However, for other businesses, the rapid
| |
| | are probably existing technologies
|
| change in technologies has offered
| |
| | waiting to be configured and combined by
|
| significant opportunities to turn things
| |
| | smart entrepreneurs in such a way as to
|
| around. Take the case of Apple.In 1997,
| |
| | make current business models irrelevant.
|
| when it was already clear that the
| |
| | And it's absolutely certain that
|
| Internet was here to stay, Wired magazine
| |
| | soon-to-be-invented new technologies will
|
| ran an alarming cover story about Apple
| |
| | be applied to leverage the Internet in
|
| Corporation, asking readers to "Pray"
| |
| | ways that defy prediction today.So here's
|
| under the headline "101 Ways to Save
| |
| | a closing thought, the Apple story tells
|
| Apple - An assessment of what can be done
| |
| | us that a key skill for manufacturing
|
| to fix a once-great company." In little
| |
| | businesses in the 21st Century is the
|
| over a decade Apple had gone from being a
| |
| | ability to spot trends early enough and
|
| pioneer of mass personal computing to
| |
| | to convert those trends into
|
| being a niche player serving a dwindling
| |
| | market-leading products and services,
|
| band of loyal users.And now, just eight
| |
| | backed by effective marketing, as quickly
|
| years or so after the call to rally round
| |
| | as possible.What do you think?
|
| the iconic company, Apple is alive and
| |
| |
|
