We've all heard of Apple. It's a fruit, a company that makes Mac's, the iPod, and the iPhone. The rate at which they expand and bring new technology out, marketable technology, is amazing. But what can stop their march of success? What can slow them down? We'll figure it out right here.
The first thing that might threaten their success is if vulnerabilities are found in their operating systems. Now I know most of you are probably thinking, "Pah! This isn't Microsoft man." Well, one of the reasons vulnerabilities haven't been found in Mac operating systems is because of their small user base. There will always be more hackers in Windows just because of the larger user base. But as the Mac OS popularity grows, you're going to see more and more hackers trying to get around the security features of Apple's systems. Just because no one hasn't found a weakness, doesn't mean it isn't there. There was one such example when some Windows users were testing Safari on Windows, they found a whole lot of holes in the security of Safari itself. While, it was on a Windows based machine, it is possible to find flaws in security on the Apple systems.
The odds of this happening are about 55%. I don't know the complete security features of Apple systems, but as more and more people use it, more and more people will try to crack it. It is inevitable that people will take cracks at it. But finding a weakness? Well, we'll have to see how long it takes the hackers.
The thing Apple can do to deal with this is just test and test and test. They don't have a whole lot of options regarding it but just be on top of it as their popularity increases. Maybe hiring some hackers to blow through their system might be a good idea...
Another thing that could become a potential problem for Apple is if a company makes a strong competitor to the iPod. iPod is Apple's money maker, so if something threatened iPod...it'd be pretty bad for Apple. What could come out that would threaten iPod? Well...not much other than an iPod ripoff or one that offers more features. But there are other MP3 players out there that offer better sound quality and don't require the usage of a program to install music. A lot more offer the plug & play option.
The odds of this occurring are about 25%. Not many companies out there can package as many features into a small little machine like Apple can.
Not to say Apple shouldn't be wary of a ripoff or any competitors. But they should focus on making the sound quality just a little bit better to compete with the sound offered by many other MP3 players. Perhaps a specially designed set of headphones for the iPod to make the sound quality better? Maybe making the iPod more user friendly to plug & play options? The options are endless for the expansion of features on the iPod.
Now another problem that Apple might face is over-expansion. Right now, Apple has about 3 product lines. Computers, music players, and the iPhone. I'm sure that the company is pondering what else they can expand into and make a big impact. Steve Jobs has done a good job of directing the company towards markets that Apple is strong in and making sure to effectively become a dominant player in that particular market. But what if the company expands into something that just is not for them? I'm sure we all remember when Apple used to be down in the dumps when Steve Jobs wasn't there.
The likelihood of this occurring in the present is pretty low at 5-10%. However, long term I think it is more of a possibility and jumping to 75% chance.
In order to survive this possible threat, Apple needs to train good managers and people who understand the markets, current trends, among other things. Someone similar to Steve Jobs would probably do a really good job. But let's face it, not everyone is Steve Jobs. So what else can Apple do if this happens? Take a look back at their history and see how the company has done and where it has faltered. If the product is popular but just not hitting the target audience from the right angle, they could do a lot more market research and determine how to better market the product. Now of course if the product is a complete flop, the company should recognize to pull out sooner rather than later.
Sunday, November 25, 2007
Monday, November 12, 2007
Advantageous Competitiveness
Competitive advantage is an important part of a company's ability to keep itself out there and in the game. There's a lot of ways to keep ahead. Niche marketing, coming out with new ideas first, gobbling up the entire market share, keeping high tech, or having good old big brother government backing you up.
A few firms come to mind when thinking of competitive advantages. Microsoft, with Windows, has a strong advantage over most other companies in the OS market. Their market share completely obliterates and dominates all the other players. Of course, they're being thwarted by Apple and Linux. But most of the world's businesses and consumers use a Windows based OS. Though, they better keep on top of those security issues if they want to stay on top.
Another company that comes to mind is Gamespot. (See a trend and how I use them?) They're a good focus on niche marketing. They sell only games and the hardware to run those games. The company doesn't focus on anyone else. Their primary focus is on the gamers themselves. As I said in an earlier post, most companies that offer games in their store still cannot compete with Gamestop. When people think games, they immediately think Gamestop, or any of their stores with different names.
Let's bring back Apple and their iPod. Ya know, that nice little machine that plays a couple of million people's music everyday? They were the first company to really make full use of the mp3 market and make a machine that was simple to use and didn't run into a whole bunch of problems converting music and what not. The iPod design itself was also "trendy" and many companies followed it. (Wii anyone?) Apple and their iPod were first in the market to really make use of mp3s beyond illegal downloading and burning to CDs.
Finally, good ol monopoly status is given to most utility companies such as Con Ed. You'll never see Con Ed go out of business, unless everything they own blows up immediately. Of course, being allowed to be a basic monopoly comes with some setbacks. They can't charge exorbitant amounts for each little bit of wattage they provide us. As long as they keep up some decent service, they'll be in that position for a long time.
A few firms come to mind when thinking of competitive advantages. Microsoft, with Windows, has a strong advantage over most other companies in the OS market. Their market share completely obliterates and dominates all the other players. Of course, they're being thwarted by Apple and Linux. But most of the world's businesses and consumers use a Windows based OS. Though, they better keep on top of those security issues if they want to stay on top.
Another company that comes to mind is Gamespot. (See a trend and how I use them?) They're a good focus on niche marketing. They sell only games and the hardware to run those games. The company doesn't focus on anyone else. Their primary focus is on the gamers themselves. As I said in an earlier post, most companies that offer games in their store still cannot compete with Gamestop. When people think games, they immediately think Gamestop, or any of their stores with different names.
Let's bring back Apple and their iPod. Ya know, that nice little machine that plays a couple of million people's music everyday? They were the first company to really make full use of the mp3 market and make a machine that was simple to use and didn't run into a whole bunch of problems converting music and what not. The iPod design itself was also "trendy" and many companies followed it. (Wii anyone?) Apple and their iPod were first in the market to really make use of mp3s beyond illegal downloading and burning to CDs.
Finally, good ol monopoly status is given to most utility companies such as Con Ed. You'll never see Con Ed go out of business, unless everything they own blows up immediately. Of course, being allowed to be a basic monopoly comes with some setbacks. They can't charge exorbitant amounts for each little bit of wattage they provide us. As long as they keep up some decent service, they'll be in that position for a long time.
Monday, November 5, 2007
Strategically Strategizing
Many companies out there take on a specific role within their market and carve out a segment for themselves. They strive to bring about a particular business aspect, low cost, niche marketing, something specific that they can use to their advantage.
Walmart is a company that takes advantage of cost leadership. I don't believe Walmart's practices are very fair, they do take the crown as being a company that drives costs down. Not only are their prices generally lower than many existing competitors, they also reduce their in-house costs substantially. The company also has a knack for getting their suppliers to supply them at considerably lower costs. If any of you have seen the documentary on Rubbermaid...you will know that Walmart drove them into bankruptcy when Rubbermaid was unwilling to lower their selling point to meet Walmart's demands.
Sak's Fifth Avenue is a company that utilizes differentiation. The clothing in the store itself is high end and deserves the higher price tag over your regular run of the mill clothing. However, the company focuses a lot on the shopping experience itself. You practically get your own personal stylist when you enter. Of course for this service of a personal stylist, they charge a few hundred more than if you were shopping down the block at Macy's or something. It makes you wonder why people would pay the extra amount. Reason? People want the experience, don't want to go through the hassle of going through the larger crowds, and they have the money to burn.
A good focus company would be Gamestop. They're about as focused as it gets when it comes to offering a product. Like the word in their name, games is all they offer. From consoles to the computer, they have them all. Of course that's also all you will find as well. Don't expect to see computer parts, clothing, or food being served up at Gamestop. They have one focus and one focus only: Games. There's a reason why many other electronic retailers find it difficult to really sell games. It's because everyone goes to Gamestop because the employees know the games and that's all they sell.
Welp, that wraps up strategies. Follow them well and use it to your advantage. Just try not to kill a big company in the process.
Walmart is a company that takes advantage of cost leadership. I don't believe Walmart's practices are very fair, they do take the crown as being a company that drives costs down. Not only are their prices generally lower than many existing competitors, they also reduce their in-house costs substantially. The company also has a knack for getting their suppliers to supply them at considerably lower costs. If any of you have seen the documentary on Rubbermaid...you will know that Walmart drove them into bankruptcy when Rubbermaid was unwilling to lower their selling point to meet Walmart's demands.
Sak's Fifth Avenue is a company that utilizes differentiation. The clothing in the store itself is high end and deserves the higher price tag over your regular run of the mill clothing. However, the company focuses a lot on the shopping experience itself. You practically get your own personal stylist when you enter. Of course for this service of a personal stylist, they charge a few hundred more than if you were shopping down the block at Macy's or something. It makes you wonder why people would pay the extra amount. Reason? People want the experience, don't want to go through the hassle of going through the larger crowds, and they have the money to burn.
A good focus company would be Gamestop. They're about as focused as it gets when it comes to offering a product. Like the word in their name, games is all they offer. From consoles to the computer, they have them all. Of course that's also all you will find as well. Don't expect to see computer parts, clothing, or food being served up at Gamestop. They have one focus and one focus only: Games. There's a reason why many other electronic retailers find it difficult to really sell games. It's because everyone goes to Gamestop because the employees know the games and that's all they sell.
Welp, that wraps up strategies. Follow them well and use it to your advantage. Just try not to kill a big company in the process.
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