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All Time Favorites- Steve Jobs
Monthly Archives: September 2006
Apple’s Internet journey
Unlike Microsoft, Apple never had to compete in the browser space. Instead, it aligned with Netscape, AOL or Microsoft whenever needed.
Analysts were not even sure if Apple had an Internet strategy to begin with.
However, its Internet plans came to fore when it unveiled its in the year 2000. It introduced a new category of Internet services called iTools; a completely redesigned Apple.com web site featuring iReview and iCards; and a multi-year partnership and investment with Earthlink for Internet access.
But Apple’s biggest move came when it launched iPod and its companion online—iTunes. For the first time, Apple touted a business model centered on Internet.
It said “Buy iPod and download the music from iTunes, 99c per song”. Sceptics were not sure if this would work. But work it did…big time.
As Steve Jobs said in a recent keynote…”But as you know, iPod is only part of the story. What I’d like to do now is talk about iTunes. iTunes has a market share of 88% for legal US downloads. We have sold over 1.5 billionsongs. If you look at all the music that’s legally distributed in the US, and CDs and online iTunes is now the fifth largest legal reseller of music in the US. We’re on a trajectory to surpass Amazon and become #4 in January 2007.Outside the US, there are iTunes stores in 21 countries . It’s #1 in every single country.”
Apple is sure on its way to become Apple dot com with its iTunes now offering TV shows and movies. Its dominance in the digital world is sure taking the company into consumer’s homes, cars, mobiles…while taking a share of their wallet.
And, yet again, Apple has to fight it out with Microsoft, this time for the dominance in digital marketplace.
Related links
Steve Job’s key note address
iPod at Wikipedia
Website to Internet Stratgy:Microsoft dot com
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A corporate website has come a long way in terms of its utility and its overall perception to the stakeholders. Today corporate websites not only provides comprehensive information about the company but also play an important role in executing its business and sales models. What better an example to illustrate this point than Microsoft.com?
Phase I: Only Corporate Strategy, No Internet Strategy
When Microsoft got started on the web, it was a laggard of sorts, way behind Netscape.
Experts all over conceded that it took a while for Microsoft to figure out the Internet, and when it did, all it knew that it had to become No.1 in the browser market. So, its web presence was an extension of its corporate strategy—Go after Netscape.
Microsoft.com in the initial years reflects this strategy where all its new versions had only one purpose; showcase the features of Internet Explorer and make it easy for internet users to get and start using it. The period between 1996-1998 saw the website changing from a simple-gray-background-some-pages to a information-rich-yet-showcasing-the-new-features-IE (active X controls etc).
Phase II: In comes an Internet Strategy
Only when Microsoft’s IE made significant inroads into Netscape’s market, did it start asking the question “What should I do with Internet today?”
When it did, the ‘user’ took center stage and an internet strategy came to fore. Microsoft.com transformed into a site that does lot of things for the user than just be a showcase site for its products. Suddenly all the other components fell in place like that of MSDN, Support etc. The homepage not just informed the users but guided them to action.
Significantly, two things happened. One, the site became more user-friendly. Second, there was something for the users to do on the site as a part of their daily routine.
Suddenly the interest in Microsoft.com went up and the users grew exponentially.The period between the later half of the year 1998 to the year 2003, saw Micrsoft.com emerge as one of the world’s top visited sites in the world. Interestingly this also allowed the company to tout the capability of its Windows Server line of products, driving home the point—’If it is good for Micrsoft.com it is good enough for you’.
Phase III: Internet Strategy aligns with the Corporate Strategy.
Somewhere in the year 2003, Microsoft’s plans in the consumer products division started yielding results. Leading the pack was X-Box, a playstation rival. Since then, the website’s design reflects a certain enthusiasm, almost child like. It continues till date with over half of the home page real estate devoted to new consumer products. Every now and then, when Mr.Gates unveils new products at events like Comdex, the homepage is agog with such news.
The homepage is now a place of action with vibrant color images of games and gadgets. While the corporate strategy is dictating such design changes, its Internet strategy, which is centered on understanding and engaging the customer is intact.
Internet today plays an important role in Microsoft’s sales model and with its latest offering ‘Zune’ it might even be a part of its business model.
You might never know, if Microsoft.com becomes synonymous with the company or LIVE becomes the only way it would deliver its products. However, two things appear to be certain. One, its components of Internet strategy—Excite, Inform and Prompt to action—are here to stay. Two, Internet strategy is a part of its corporate strategy now.
Next article in this series: Apple’s Internet journey
Related links
A brief history of Microsoft on the web