By reading through different blogs within the Themenfeld, I
made some interesting discoveries. Whether my colleagues and I discuss the right business model for cross-selling, the creative ladies worry if it is possible to earn money with music downloads, the group of paid content informs about the exclusive Newspaper for the Apple iPad or the German Copy Cats argue about companies and there Internet presence. This article tries to find a solution for all the problems and discussions with just one answer: Business diversification!
Whether Zalando or Bands4friends, many business models have changed during the course of time – from selling a single product, having just one core competence to a wider product range with different competences. There we go: Cross-selling!
The search for the money-maker!
As mentioned in the introduction, all blogs look for the perfect business model that increases turnover, is innovative, stable and guarantees future success. But who can offer all these criteria? No business plan can promise that. But there is one outstanding example for sure: Apple.
Apple is different.
The business model of Apple seems to be old. But only seems to be. Nowadays companies try to divide work, build cooperation’s. Apple makes established brands in traditional industries look silly through their innovation and self-confidence. To receive more information, please click here.
Music industry. Nothing goes without Apple!
Is there a chance of earning money with downloads, asked one of the creative ladies. Apple does not only sell IPhones, Macs and other great technical devices. They are also the market leader by selling songs on the internet. Apple diversified there business not even 10 years ago and since then increases market share with music products every year. According to the Securities and exchange Commission of the USA, the so called ITunes Store, had made sells of 3,34 billion dollar with digital music downloads already in 2008. In 2007 it was only about 2,5 billion. Apple’s music products and services was about 10% of the total turnover and even higher in weighted then sells of the IPhone. Steve Jobs does not even dread to cope with the music industry about the prices for downloads. Find out more!
Real to digital business model
In regards to the IFPI digital music report of 2009, the digital music market is worth 4,2 billion dollar and increased its turnover by 12% compared to 2008. The offer of downloads has exceeded more then 11 million songs. Digital music markets is about 27% of the total music market. Downloads of individual songs increased by 10% to 1,5 billion titles. According to those figures, the music download market seems to be a very profitable way of business. The time of traditional disk-selling stores appears to be long a go. Only in big media stores you can still find disks. The change from real disk buying to the digital is closer then ever. Apple has seen these opportunities at an early stage and has through his stylish music devices a great advantage to its competitors.
Newspaper exclusive for the iPad
Another clever strategic strike of Apple: Whether Amazon or other companies trying to build an ebooklet, Apple changed the world again through their innovate insight. No one speaks about eBooklets, everyone talks about IPads. As the paid content article states: Murdoch and Jobs publish an exclusive Newspaper for the iPad, Apple took pretty much over all the experiments of there competitors and develops its advantage through cooperation’s and its monopole . Again, Apple establishes itself as special and innovate
and consolidates its market position through diversification. Even Angela Merkel, the German chancellor, has an iPad.
Shouldn’t there be a Mac displayed on apple.de?
Apple does not only develop computers and media products as they used to. Nowadays the first page on their website shows the Beatles. But, what do the Beatles and Apple have in common? Exactly, Apple became all the rights to sell the Beatles in the ITunes Store. Websites are different and each one has a special perpose, as the German Copy Cats mention in their article: Unternehmen und ihre Internetpräsenzen. That is what Apple uses. They navigate peoples interest by making their website to an advertising for company news, even it is not for the core competence. Websites allow flexibility and creativity, as it has never been possible before.
Competitive advantage? Matrix of Guy Kawasaki
As Lena wrote in her post: Selling emotions as a competitive advantage, Apple knows exactly how to get the attention of their fans. It touches the emotions of the shopper and makes them pay more through customer loyalty. A good example is the customer excitement when waiting for the iPad in Munich.
As Guy Kawasaki points out, it is the customer benefit and the customer value in conjunction with the unique selling proposition that business leads to success.
According to the Kano Model: First, the must have. Basic needs that must be fulfilled, otherwise the customer is unsatisfied. Second, Linear or performance features: ‘The better this kind of features is developed, the more customer is satisfied.’ Third, the excitement and ‘wow’ features. A higher price is possible because customer has not articulated need. Customer loyalty is very high. In regards to the example, Apple meets the criteria of the third level. Customers have not said what they want, but Apple delivers and the success confirms the model.
Stable success in difficult times: Diversification
As we have learned from the Teekampagne, diversification is not a must have. Selling one product in a very efficient way and of high quality could also be prosperous. Find out more, click here. But as noticed on the example, Apple generates billions of dollar turnover and has made amazing 4,31 billion US-Dollar net revenue in 2010.
Diversification and cross-selling are not a guarantee, but a very good way of having future success.
Read an interview with diversification expert David Stern and see how other companies benefited.