Diamond Tornado
Apples business model a seamless combination of hardware and software
Apple, where the secret of success? This is the question everyone wants to find out. However, from Steve Jobs, Apple’s down to the ordinary soldier, to the outside world did not provide a clear answer. Some may be reticent about the comment, but more individuals thought: Apple’s success for granted.
Finally, Apple executives occasionally interview a sentence spilled the beans: “Apple’s secret of success is the best software in the hardware installed in the best.”
Often the most simple language Zhizhirenxin, Apple is so tempting to create the secret lies in its business model. Business model is how to create and transmit customer value and company value system. Business model innovation than product innovation and service innovation is more important, and sometimes the skill of no less than the greatest technological invention.
Business model innovation can change the industry structure. Wal-Mart, Best Buy, Southwest Airlines and the Amazon, creating innovative business models are models of success stories.
From 1998 to 2007, the cut “Fortune” 500 companies, 27, of which there are 11 that the key to success lies in their business model innovation.
A complete business model consists of four closely related elements: customer value, profit model, key resources and critical processes. Among them, the customer value is what you can do for customers irreplaceable value, profit model is how you create value for our customers profit in the process, the key resource is internal to pool resources to provide value for customers, The key process is how an enterprise culture within the system and ensure the realization of customer value. Customer value proposition and revenue model are clear customer value and company value, key resources and critical process is described how to achieve customer value and company value.
Apple’s reason for technology companies dominate the world, not just critics that it is praiseworthy fashion design, but also on the surface of the star not only in product innovation, but the key is, Apple has created a new era of excellence belonging to business model . It is a change to Apple’s business model has changed the traditional computer manufacturers apathy and become the leader in mobile Internet era.
The most important customer value creation
Even a heavy Apple, iPod iTunes, iPhone App Store, iPad, has changed the traditional music, mobile phones and the publishing industry, the establishment of a new order in these three sectors, but also because of Apple’s own grasp of the hardware, software and services industry key, which dominate the landscape of the New World has become the axis of the trend.
A successful business model, the most fundamental is to provide new customer value. For Apple, the Apple user value before the means to provide them with the latest technology out of the industry, and since Steve Jobs returned, Apple began to re-examine the customer value, get rid of the old closed thinking, eclectic, maneuvers, advanced technology, appropriate cost and superior marketing skills combined.
Apple’s products and not particularly cutting-edge technology, but also often not the industry’s first to eat crab, but can at the right time to the right technology to the most appropriate way consumers experience designed to succeed.
For example, the first digital music player, the company is not Apple, but a company called “Diamond Multimedia” company, as early as in 1998 they launched a digital music player, Apple earlier than the full 3 years.
Innovation the key profit
Successful business model of the second step is a clear profit model. Apple has two main profitable path: first by selling hardware products to get the one-time high profits, which currently provides the vast majority of Apple’s source of profit; Second, by selling music to be repetitive and applications the continued purchase of profits, compensation and access to operating platforms.
The two will be mutually profitable ways to enhance a virtuous circle. Because good design, and more than 10 million dollars of music and application support, whether iPod, iPhone or iPad, are better than competing products, the profit is much higher. Similarly, because of superior hardware and support for Apple’s high-volume, those applications are more valuable, more able to promote the development of new procedures and software, driving more and better content into Apple’s supply chain.
Gengrang Microsoft, Google and other new and old rivals angry that in the past has been a small minority, and Apple is now closed popular not only completed the turn, but still a separate entity, firmly in control of core resources and core competencies, the opening up of foreign closed, much like a tornado.
Apple controls the core of this industry, and also the highest profit margin of the design, channels and marketing chain, and Apple’s hardware, operating software and the iTunes, App Store and other Apple channel platform is only applicable to the Empire itself, the outside world for technology vendors closed. Therefore, the growth of the Empire Apple Apple’s profitability also means that the stronger, so the strong get stronger in the industry.
To iTunes as an example ,2005-2009, the music download service revenue growth has remained high, even if sales slow down in 2009, ipod music download service is still up 21% of revenue, total revenue rose to $ 4,036,000,000, in the music class services segment revenue in proportion from 16.4% in 2005 to 33.3%.
Look at the App Store. As of June 2010, App Store has been to provide users with more than 40 billion free downloads, paid downloads of software ratio of about 19%, the average price of $ 1.49. Apple for each download from the user can get 29 cents a share. From on-line since 2008, App Store for third-party software developers to bring both more than 10 billion revenue increase for about 428 million apples.
Resources to process the most basic
How Apple customer value, access to money? It is up to key resources and critical processes.
Apple’s key resource is that it has an outstanding CEO Steve Jobs, a representative of the computer industry history and independent spirit of the high-end brands, a number of industry-leading, very spirit of innovation and perfect product design and development staff.
Because of the rich in Silicon Valley and Hollywood entrepreneurial experience, walk in the IT and Jobs as the film industry is almost unique among the CEO, a set of technical, artistic and strategic talent Trinity CEO. If the movie and music have to give IT Select a community spokesperson, it is undoubtedly Jobs. Jobs need only be aware of the content network, the network needs to be the right time to trust the content of their movies and music to tie to your boat.
Although Apple has in the last century 90?s gradually fading, but the brand still shine in the hearts of many people, can not be replaced. Or the iPod case, iPod in design aesthetic, combined with a complete price system, covering high, medium and low-end product line, excellent sales program, Apple’s brand image has reached an unprecedented height. As a fashion favorite, iPod has attracted public concern, in less than 6 years, iPod has sold nearly 110 million total units, conversion of more than 1,000 companies to iPod sects. Appeared to 6th generation iPod, iPod has become a solid mass of global business trends and the number one star.
Apple’s human resources is also important. Jobs need to know to adapt to the exigencies of the work style and easy to find R and D personnel. Jobs he had to endure the critical, over and over again to modify products, or even completely negative, have to suffer a bit rude language approach Jobs, Jobs to have to keep thinking that half the artist’s jump. Steve Jobs has asked a designer in the design of a new computer, appearances can not see a screw. Later, the design of the models with a screw out a little exposed, the designer who put the results of Steve Jobs fired immediately. Steve Jobs always seize the core staff, and Apple is always owned or controlled all of their core technology. Apple has just entered a designer annual salary of 20 million dollars, higher than the industry average of 50%. The accumulation of years of human resources, making Apple’s elite of elite consumers in the design of a fool like an excellent product.
Apple’s key processes, including Apple’s corporate system that encourages innovation, corporate culture and R and D management, these processes ensure that Apple’s product innovation with a replicable, and scalable, so as to continuously develop similar to the iPhone and iPad such products, also ensure that Apple can continue to open up new industries, and their innovative business model copied to these areas.
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