Tag Archive | Business model

#Jobs of #Apple – just a bright future if…

Almost a week since Steve Jobs resigned as CEO from Apple….but still everybody keeps writing about it. Why Jobs left? What is going to happen with Apple without Jobs in command?  and so on…. But I think the real question is: Why is everybody so fond of  Steve Jobs? He is off course the Apple Icon who lifted the ‘Apple’ brand up, with a clear strategy and vision!

In my Apple – Case you can see a brief version of the Apple history, and why the role of Steve Jobs was so important.
But lets take a look a the future!
Steve Jobs had a clear vision on how the Apple future would look like….but had a great team around him. This team has been at his side for many years now, and really got the hang of the Apple feel and touch. Tim Cook, the ‘new’ CEO, was already Steve Jobs right hand for years. Jonathan Ive has been the creative source for all Apple products for many years and Philip Schiller transformed the Apple company into a lean mean operations machine. With Steve Jobs out of the daily picture, this 3 people will keep on playing key-roles in the future of Apple.

With the iCloud in pole position, the iPhone 5 waiting around the corner and the iPad first mover advantage the near future is safe….and knowing Steve Jobs a lot of new ideas will be at the drawing table waiting for further exploration.  With Tim Cook in control, these ideas will see the light of day, and probably thanks to his close relationship with Steve jobs, Tim Cook will be able to lift Apple into the new decade with fresh ideas and quality products.  The Apple Business Model is solid, safe and dynamic enough to deal with the end of the Jobs era (which was coming one way or another).

The stock markets also feel this ‘positive’ vibe for the past Jobs-era. The first reactions on the stock markers where calm and only a slight drop was visible when the news broke. So a real big drop in the Apple stick price is not to be expected in the future (as long as the Apple philosophy remains intact: good visionary and quality products!)

To be Continued…

The App – business model

Amazon to launch its app-store on march 22nd….it’s been a while but again Amazon is adapting to the new generation of business modelling entering a cloudy and mobile app-world. 

But why change a winning team….when everybody says, never change a winning team! The future of  new mobile and cloud era forces Amazon to take action. App’s are the future is this era, so the time was right after the big 2: Google and Apple (through iTunes) for Amazon to adapt to the app era. Why? Easy…it’s the business model (stupid!), so let’s take a closer look at the business model of a digital business where the app-store takes a central role!

This image points out a clear role for the app store…central in the business model between business, developer and customer.  The app-store serves as a central hub where network effects plays connecting customer value to app. On the revenue part, it’s easy the app store is the middleman containing the data and money flows (look at iTunes, who keep everything very close and gains a lot of money and data).

What’s in it for Amazon….easy Amazon’s web store will focus on web apps, who are accessible to the cloud on any device. Buy once, use everywhere. That’s the future of app….not only accessible through one device but accessible through multi devices, and adapts to the device. This is a weak point regarding the Apple strategy….I can’t access my iPad Apps through my iPhone and vice versa. I’ve got to buy them both, because they run locally. The web App is stored in the cloud, and can be accessed in an adopted format on every device…and that’s when it starts to get interesting for companies like Amazon. The app has proven it’s effect, and the app stores becomes the central service point, because everything can be made into an app, and this means business if you can reach a lot of potential customers like Amazon. It adds to the already connecting and sharing strategy of Amazon, and make Amazon available everywhere on any device…that’s a good business model in the mobile and cloud era!

The Apple business model succes?!

The Apple business model….a lot has been written already (I did myself – Flat Education – Case: Apple Inc), but then again you wonder: Is my business model Apple proof?

With the launch of the iPad 2, last week, Apple had a major advantage: they were first to give an updated version on a tablet at a ‘cheap’ price. How is it possible for a Market introduction to put these ‘low’ price for such a ‘high’ tech product. In normal marketing pricing terms, we would use a market skimming pricing strategy, coming in high and then lowering the price (a classical marketing theory….I love it – in the off-line world, or the web 1.00 world), but in the online web world of 2011 traditional marketing isn’t always the right way. So way is Apple able to introduce the new iPad 2 at a competitive price? Easy….it’s the business model!

Let me explain it you!
“Apple is the only company in the IT industry that sells the whole widget” – Steve Jobs!
Apple has used this business model since it introduction mid 70-ies. Apple wants to produce  integrated software and hardware-solutions, look at Macintosh, Apple 1, ….even the iPhone and iPod use the same strategy. Apple makes everything in-house, even adding the iTunes store as the third-party intermediary between the Apple user and the commercial world. (See my case: Apple Inc.)

If we look at the iPad (2) strategy we see the same strategy:

  • hardware: Apple’s patented R&D design, with A4 Chips, …. (and not Intel, AMD, ….)
  • software: a closed ecosystem (where you can run third-party Apps, but can’t change the operating system, or else….)
  • sold through the Apple retail network: off-line and online Apple stores….and third party stores to get word out! Works especially well in the US, outside the US we see more traditional retail sales. 
  • iTunes store which is one of the most succesful online stores around…and fully integrated on the iPad, with the iBook and App Store.

These key elements make sure Apple can sell it’s iPad at a reasonable 500$ price….Maybe the overall value of the iPad is over 500$, but to be the first in the market you can set the price (especially when you have a good product – and the iPad is more than ok! I’m not saying it’s the best!). This means you can make it hard on competitors, which don’t have this vertical integration, and are teaming up with each other….but since everyone wants a piece op the pie, the price is higher. ( Motorola’s Xoom tablet is introduced at 800$ and the Samsung Galaxy Tab is 600$). 

In addition I’m adding an interesting presentation of the Apple  Business model, in comparison to the Amazon business model (see my Amazon.com case for more information Amazon). Although the outcome of this comparison is correct, I still feel that the Amazon business model is sufficient enough to survive the second Bubble…because of other key elements of a succesful flat business (see my page on creating a flat business).

Is your business Apple proof and ready to survive the second bubble?
Maybe you want to rethink your business model?

Yahoo 2.0 – Livestand

Yahoo is a portal site….always has been, and still is…but becomes less relevant now social media comes around!

What’s next….Yahoo announced Livestand, Yahoo 2.0 developed for the mobile tablet (and for sure for iPad, but probably also on Android, Honeycomb, and other operating systems in the near future).  It looks like a digital magazine filled with Yahoo and tirth party content. Although you will download it as an app, it’s not ment to be an app it’s ment to a platform to use. Trough this platform Yahoo hopes to attract magazines who will sell advertising space and get subscriptions through Livestand.

Let see how Apple will react to this new business model….again they change the model to attract new revenue.

In the flat eductation section, I mention the fact that business modelling is so important when looking at the flat world business….the way you do your business now will not be the way to do business in the flat world. Be prepared to change your business model….any help on this can be found in the business model section

(picture source: www.businessinsider.Com)

FlatInvesting – Crowdfunding & Fansourcing

I’v been writing about it alreay. A flat searches for new business models, one of the aspects of business modelling is the funding part. Where to get your money in a flat world. Especially the creative business (moviemakers, music, ….) have a problem with finding revenue in the flat world.

As always I believe Schumpeter (an Austrian economist) who wrote about creative destruction.  To make progession we have got to led go what we know en explore new ideas! Crowdfunding and fansourcing is this new way of dealing with the decline in revenue through Cd sales, …. You could already read how Tom Dice is rewarding his investors….so why don’t you think about this new way of funding your creative business!

I’ve posted an article from De Standaard with all you need to know about crowdfunding and fansourcing through akamusic. Akamusic works as a networking site but with the option to fund the project, artist, creative partner, … Maybe a new way to build a sustainable society by the society!

Flat Investing?

I’ve put up two articles in the media section of this site. Both deal with the new way of music business model.

Indepent artists ask there fans to fund their career, and give a divident at the end of the year. Belgian Artist Tom Dice (who participated) at the Eurovision songcontest used this model of funding, got his career of the ground and paid his investor 26 EUR of dividend (in 10 EUR initial investement). Not bad….if you see current banking rates!

Is this a new way out for the music business?

Let me put out my first statement on flat world:

“In a flat world participants are used to reach your goal”

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