Rising from the Ashes

As I read this morning about the huge success of Apple and their $76B stockpile of cash I was compelled to think about how Apple came back from the brink of obscurity to the most admired brand in the world. It is hard to believe that at it's worst point you could only find Apple in schools and there was limited software for the existing Apple computers. Now you see fake Apple stores in China and endless other companies trying to duplicate their success in music devices, tablets and laptops. Nobody could have predicted this kind of success and I will take a look back to answer the following question.

What were the keys to Apple's rise from the Ashes and how might other companies learn from their example?

Focus on the Unmet Consumer Needs

At the time of introduction of the iMac, Macbook, iPod, iPhone and iPad there were existing devices and competitors in all of the markets. What helped Apple succeed was their focus on the unmet need to make these devices easy enough to use for the average user and to be esthetically pleasing. The unmet need was to own a device that transcended from merely functional to essential. This was done thru the physical design and the interface design, which allowed the devices to be easy to use and cool at the same time. Before the release of the Apple devices the existing products in these categories were mainly functional only and didn't inspire enthusiasm. Apple changed the paradigm with each and continues to do so.

Appeal to the Early Adopters and Fan Communities

The Apple Fanboy community is nearly as enthusiastic as the Star Wars fanboys and I think this is due to both the products they design and the methods they use to release products. Apple is notoriously secretive about what products they will be releasing and this creates a layer of intense speculation prior to each launch. By being secretive and at the same time following a reliable cadence of product releases, Apple creates excitement around each product launch, which in turn increases revenue. They are only able to achieve this due to the constant pace of innovations and the performance of their products. If the performance lagged or the products releases were delayed, this excitement would begin to wane.

Create an Intuitive Ecosystem

Prior to the creation of iTunes consumers needed to go to multiple locations, both legal and illegal, to find their favorite songs and depending on their MP3 player, convert and load them. This was beyond the capability for most consumers and the blending of iTunes with the iPod made this process exponentially easier. This is similar to the rise in popularity of the iPhone and the App Store. For both of these the consumer performs a simple search and with a few clicks receives instant gratification. The process of creating an intuitive ecosystem is extremely difficult, but it will ensure the long-term success of the product or service.

Foster the Brand

Apple's focus on branding is only rivaled by other companies like BMW, Coke, Budweiser and Nike. In each experience, whether it be online, TV, magazines or at their corporate store, the branding is consistent and enforces the overall company brand. Consumers crave consistency and predicatability and I feel their brand consistency gives consumers piece of mind and assures them they are buying from a reliable company. This focus has enabled Apple to build their brand throughout the world and allowed them to expand beyond their core markets of computers.

Summary

Not all companies can or will rise from the ashes like Apple has, but they certainly have provided a good example of how a company can succeed where it has failed before. Companies like Yahoo, RIM, Myspace, Levi and Kodak could benefit by practicing some of the elements above, but it takes a commitment at all levels to deliver the kind of results Apple has achieved.