• Business Model – Develop a business model based
on core competencies: The device-centric business
model of the iPhone [45] has been the strongest
factor in the success. The iPhone launch went
against traditional wireless business models and
showed that device manufacturers could successfully
control the necessary portions of the value chain and
allow all players to be profitable and successful.
• Marketing – Focus on fulfilling consumer needs:
For the iPhone, Apple markets the services provided,
rather than the hardware, focusing on what the
products and services can do for the consumer,
rather than the specifications. Key to success is not
focusing on products, but rather the fulfillment of
consumer needs.
• Service Providers – Maintain control through
content access and distribution:Apple understood
that applications and content are best left for third
parties to develop, but maintaining control over
access and distribution (including security) were the
key elements of the value chain where it had core
competencies. It proved that you do not need to
perform the tasks in every part of the value chain,
but rather coordinate and control the value chain to
allow success for all players.
• Regulatory – Make regulations work for you:
Rather than working against regulations, Apple has
accepted the regulatory factors, and worked within
them to launch products and services that comply yet
achieve high levels of success. Too much corporate
energy can be expended fighting regulations, when
success can be achieved by working within them.
• Infrastructure – Take advantage of the available
infrastructure: By working within the
infrastructure of the individual countries and
exploiting areas underserved due to infrastructure
issues, the iPhone has been able to succeed. Due to
the strong fixed line infrastructure in the US, Apple
stressed richness in its applications, attempting to
replicate user experience with fixed line Internet.
Much like the regulatory factors, by working within
and taking advantage of the existing infrastructure,
companies in the mobile industry can achieve
success.