Tuesday, September 11, 2007

Apple Shows the Way, Again

In spite of Apple's recent hiccup on iPhone pricing, they continue to show the world what it takes to be a successful consumer technology marketer. Some say its all marketing but I think there is much more to it than that. Its a cultural vision and commitment to innovation and differentiation from top to bottom.

When was the last time Apple did anything the way others do it. They launch their products differently. They price and sell their products differently. They make their products look different. Their products function differently (many would say simpler and better.) They advertise differently. They have the one thing that typical companies sorely seem to lack - the intestinal fortitude to do things not because everyone else does it that way but because its a better way of doing things.

My definition of Intestinal Fortitude is "an extended and ongoing effort in which you stand up for your principles and do what's best for your customers and your company in spite of the threats or seduction of choices you are faced with."

The beauty of intestinal fortitude (if you can endure) is that it eventually defines you and becomes a real part of your company's code.

One example that I can think of related to Apple is the often repeated notion that Macs are simpler and more reliable to use than Windows-based PCs. Several years ago this might have been propaganda. I recall that my Mac ProBook from around 2000 with OS 9.x was the buggiest machine I have ever owned and my program applications operated horribly. Well, we all know, now, that Macs truly are simpler and more robust than Windows-based PC's. That's because by saying that simpler and better matters it becomes part and parcel of everything the company does. OS X is very stable. The assortment of Apple applications are all designed by a team of software engineers to work seamlessly together. Culturally the company adopted this design and integration philosophy and makes it work. They extended this philosophy to the iPod successfully and now they are extending it once again to the cellphone market. Heaven help the competition if Apple gets a hold of the soon to be auctioned wireless frequency spectrum.

There are signs that other companies are catching on. Witness Dell's redirection. There is only so long that you can cost reduce products and squeeze out operational efficiencies. In the end consumers want great products. Michael Dell surely gets that no business model can go on forever.

In the end, consumers are well-served by Apple's intestinal fortitude. They may charge more money for their products and make greater margins than others but it all comes out in the wash.