The New-Old Apple Strategy – Apple has to better its game (The Death of Blue-Ocean Thinking at Apple)

Image representing Apple as depicted in CrunchBase

Image via CrunchBase

Past the Jobs’ era, Apple is now in the game of using their competitors’ strategies to better its game instead of purely working at its innovation, as evidenced by the conference take took place just a few hours ago.

The Marris model of managerial economics will tell you that it has merely expanded its range by adding colours, and enhancing features, while Samsung has made the first-mover into watches. Whatever happened to blue-ocean strategy? It is obvious that Cook’s take is more financially driven than ever. As an operations management specialist, he will be very good at taking out costs from the system and perhaps stretching the lines to accrue more mileage out of the existing product, and understanding his personality type when it comes to innovation, he needs to bring in an innovative team to complement him.

Let’s put it this way, the next announcements will be on iPad line-ups and perhaps Apple’s second-mover advantage into iWatches. But there is a still an entire ambit of a consumer’s life that is left untapped for revenue. Apple TV for example, is just but one part of a living room, and Apple needs to get into the living room more and invade the intimate spaces of consumers more. What about accessories like wearable gears? What about bedroom entertainment? How about collaborations with designer brands and branching into wallets, bags, with embedded Apple products? After all, the consumer ecosystem is what it has diligently built itself around.

In short, Apple cannot keep playing the game in this manner because in a hedonistic world of fleeting loyalty, novelty is king. As noted by Forrester’s Ms Rotman Epps in her interview with the Financial Times, “They are on a tightrope balancing profitability and growth. Apple is not competing head-to-head with the cheapest Android phones but they don’t need to.” A phone with many colours is still a phone, which we all already own.


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