How Apple Dominates
What makes Apple tick? How is it that it came back from the dead to surpass both Google and Microsoft in market cap? French consulting firm faberNovel takes a stab at explaining Apple’s success and its strategy against its two main rivals in the SlideShare above. (In the past, faberNovel has created similar slideshows about Google).
The 48-slide presentation, titles “Apple: 8 Easy Steps To Beat Microsoft (And Google),” boils Apple’s strategy down to eight steps including “the arrogance of simplicity” (Step 1) to customer lock-in (Step 3), selling at a premium (Step 4), cross-selling products (Step 5), and, of course, think different (Step 7). Much of this is not new information, but seeing it all in a detailed slide presentation helps put Apple’s various moves in context.
Apple starts by stripping away complexity from computing products, paring down features in favor of making their products more effortless to master. Apple locks in customers by controlling every aspect of a product through vertical integration. For instance, it doesn’t make much money from iTunes, but that is how it keeps customers coming back. It makes its money from hardware, which it sells at a premium. It has been able to increase its gross margins from 23 percent in 2001 to 40 percent last year.
Over that time period, it went from a niche, high-end computer maker to a consumer electronics company. But its iPods, iPhones, and iPads bring new consumers into the Mac fold and drive sales of Mac computers, which of course work better with all of its other devices. The iPod, iPhone, and now the iPad are what drive mainstream adoption for Apple and have propelled it to become the powerhouse it is today.
PS: How Apple Dominates (In Slides)
