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iPhone.
Apple, being a leading technology company in the world, follows a unique business model of
making it simple for people to use the existing technologies in the marked. Apple focuses on
producing the best consumer electronic products available in the market which can be sold
for the highest profit margins available in the industry. For this purpose, Apple hires some of
the world’s best designers and engineers.
Apple identifies products where other producers have focused on adding more and more
features rather than making it simple for people to use the product. While the addition of
more features can create more demand in the initial days, the same can make the product
overly complicated and customers will find it difficult to use it. For example, addition of new
features to Microsoft’s Word created additional demand in the initial days but made the
product more complicated for general users later. The resulting complication in products
makes it difficult to be sold in the mass market.

This involves identifying whether the product/platform to be developed by the company can
create a compelling competitive advantage to the company in the long term. This involves
checking whether any of the existing vendors provide an integrated platform for devices and
other services Does the existing vendors provide a decent platform? Will the platform when
created by the company itself can lock-in the customers to the company in the long term?
The second question is crucial for Apple as it focuses on locking in the customers in the long
term with its products like iTunes and the iPhone.

Once the product/platform has all the pros which are listed above, Apple sets out in
designing the prototypes with emphasis on simplicity and sophistication which are
the hallmarks of the Apple brand. Other than the basic functions which are
indispensable in the product, Apple generally emphasizes on trading-off design,
simplicity, and user friendliness over the addition of more and more additional
features. For achieving this objective, Apple employs the best product designers in
the world. Focus on these elements makes all the Apple products as potential IT lust
items and fashion accessories for the consumers. The mantra is to come up with
something radically different for which the consumers will be willing to pay a high
price premium. Apple then releases both the product and the platform at the same
time, so that the consumers can be easily locked up with each other and with the
company for a long term.

The business process of Apple also involves revising the products at regular
intervals depending on factors like product cycle and cost. New releases incorporate
the technological advances in the market. But Apple also ensures that updated
releases also come up with some additional improvements like improved fit-and-
finish, looks and fashion. The platforms created by Apple like its iTunes music store
and App Store can create a compelling competitive advantage to the company in the
long-term as they can lock-in the customers with the company’s products like iPod
and iPhone. These platforms created by Apple make it easy for consumers to buy
the required media files and apps easily from the company. Audio files and Apps
through these platforms cannot be played on other devices made by other vendors.
Other vendors like Google and Microsoft too have come up with their competing
platforms like Play Store and Zune Marketplace offering similar products and
services.

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