Saturday, June 30, 2007

Umair Haque on Apple's iStrategy

Umair Haque is absolutely one of my favorite thinkers, period! He's got a really interesting read on Apple's long term mobile phone strategy. It basically goes like this:

1) Pick an industry which sucks (ie, imposes significant nuisance costs/menu costs/externalities on consumers)
2) Redress the imbalance by making something consumers love
3) ...Which disrupts the long-standing industry equilibrium, and shifts market power
4) Use said market power to redesign (a hyperefficient) value chain

It's a brilliant strategy, and one that absolutely put Apple in the driver's seat in regard to the music industry. Looks like they are getting ready to repeat that performance for the mobile industry. None too soon for me I might add...

Can we think of some other industries/institutions where this strategy might also be applied?

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