Management - How Apple Manages To Win
September 25th, 2009
Over time, Apple has built a seasoned management team optimised to support bold new product initiatives (and recover from the occasional flop). Here are a few of the techniques Apple’s management uses to make the magic happen.
1. Ignore fads. Apple has held off building a cheap miniature laptop to respond to the “netbook” fad, because these devices don’t offer good margins. Instead it released the ultrathin, ultra-expensive Air, a product more in line with its own style.
2. Don’t back down from fights you can win. Apple is a tough partner and a ruthless enemy. In 2007, Apple pulled NBC’s television programmes from the iTunes Store after the network tried to double the prices to download shows. NBC backed down within days, and ever since, giant media conglomerates have been hesitant to face off with Apple over pricing.
3. Flatten sprawling hierarchies. Companies with extended chains of… authority tend to plod when it’s time to act. Most of the decisions at Apple come from Steve Jobs and his immediate deputies.
4. Pay less attention to market research and competitors. Most firms develop their products through a combination of touchy-feely consumer focus groups and efforts to imitate successful products from other companies. Apple does neither, and the iPod and iPhone are clear proof.
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