Whether you think Apple's 1997 pact with Microsoft was just another part of the company's darkest year or the beginning of the turnaround for the company - it was clear at that time that Apple was in difficulty, and needed to take some dramatic steps to correct its course. This of course, was the theme of the keynote speech by Apple co-founder and leader-by-proxy Steve Jobs at that year's Macworld Expo in Boston, where all the Apple/Microsoft plans were unveiled.
Try mentally replacing all references in this article to Apple and Macintosh with your own company and product(s), and replace the word "Microsoft" with your competitor's name, to examine some of the issues that every business has to stay focused on. Apple lost sight of some important ideals; now it is paying the price.
Consider this quote from Steve Jobs who, for better or worse, is regarded as a man of considerable vision by supporters and detractors alike. "We have to let go of this notion that, for Apple to win, Microsoft has to lose. We have to embrace the notion that, for Apple to win, Apple has to do a really good job."
Points to consider:
Elegant solutions breed customer loyalty.
Generally speaking, Mac OS-based systems haven't been faster at day-to-day tasks, or less expensive than their Intel- or Unix-based cousins, nor is the Mac OS technically more sophisticated. Why are Mac users so devoted? The short answer is "because it works - elegantly." Best of all, Mac users have historically demonstrated a remarkable willingness to pay extra for that perceived elegance. Easier has long been the keyword for the Mac experience, but it is now a Microsoft mantra as well.
Capitalize on trends.
Apple didn't invent the WIMP (windows/icons/mouse/pointer) interface, nor did it invent the PostScript language that drove the first LaserWriter. But Apple, especially in those critical early days, saw emerging technology trends and quickly capitalized on them. As in most boom-times, the big money is made early on. If Apple hadn't been so mixed up during the mid-nineties, it might have a more comprehensive Internet strategy in 1997, when the Net really started booming.
Even as it is, the company claims 64 per cent of Web authors use Macintoshes. In his keynote, Jobs stated that 10 per cent of Mac sales are directly attributable to Adobe Photoshop.
Use the right tool for the task.
Macs handle some tasks better than Windows PCs, and vice versa. If your customers are coming in asking for Macs and you're spending effort trying to convert them to the PC religion (or vice versa), you're working too hard. Whether it's a Mac-versus-PC or Microsoft Word versus Corel WordPerfect, offer both of the best alternatives - and know when to recommend a switch.
Overcome objections.
Apple took steps to provide PC compatibility and data-translation services that allowed the systems to integrate more-or-less seamlessly into existing work environments. The message is obvious: Eliminate the reasons people use to justify why they should not choose your product.
Focus.
In his Macworld keynote speech, Jobs claimed the realization that Apple is the single largest IT provider to the education market in the world was: "A bolt of lightning."
Over the past few years, it seemed as though Apple had forgotten who its core customers were. They were, and remain, the creative graphics professionals and the educators. In 1997, Apple was the single largest education supplier in the world, with 60 per cent of computers in schools; and 64 per cent of computers teachers use - $2.5 billion per year. While that situation has changed a bit in 1999, which saw Dell claim the #1 spot as an educational supplier, Apple's markets are still growing at about 20 per cent per year. Back in 1997, Jobs was already aware that Apple's share in these markets was shrinking, but he acknowledged there was still room for growth.
Your core customer base is likely to be different, but it is essential that you stay focused on who they are and what they want.
Upgrades and consumables are good business.
It took Apple ages to realize that there was practically no profit in ink-jet printer hardware itself. The big money, of course, is in consumables, not ink-jet hardware. Similarly, the average buyer spends a lot more on training, support and software on a yearly basis than the initial computer initially costs. Apple finally smartened up: it started making fewer models, but let people upgrade them more easily. Easy "plug-and-play" hardware installations have long been one of the things the Mac does best.
Stop selling bad products.
Apple, like all companies, finally began to take responsibility for the markets it created. Continuing to market trouble-prone hardware, as it did for several months in 1997 with the problem-plagued 5300 series PowerBook-that-doubled-as-a-Hibachi, or the AppleVision 1710 monitors (dubbed "the worst product Apple ever made" by Macweek's Henry Norr) did plenty to sour Apple's reputation as a provider of reliable notebooks and monitors. Yes, Apple has new products in these categories that show improvements in quality control, but such damage takes time -- and much money -- to undo. Some users jumped ship to the Wintel world. In most cases, they won't be back.
"People are willing to pay for greatness, but they have to be shown its advantages."
Lose the "not invented here" mentality and take notes.
Start borrowing good ideas from your competitors. Capitalize on the technologies you sell - it's the best possible product demonstration. Think about how computer technologies such as the USB support of Windows 98 or the Mac OS could be incorporated into a solution. Consider the opportunities in other innovations in the forthcoming Windows 2000, such as file-based CD-R authoring, clustering, "IntelliMirror," LANdesk (network diagnostics and user administration), or streaming media. services
Admit mistakes.
When one occurs, turn on a dime and be quick to rectify any damage. Microsoft does more about-faces, and does them faster, than almost any company its size. Look at its position on NCs or Java, for example. Jobs wryly commented on Apple's problems in his keynote, "People have been working on great stuff at Apple.., it's just been the wrong stuff."
Also, work toward resolving troubled relationships. As Steve Jobs commented on the Apple versus Microsoft patent disputes that took them to court in 1988, "Relationships that are destructive don't help anybody in this industry."
Don't sell what you can't deliver.
Jobs typically doesn't even mention Apple's forthcoming operating systems or hardware products in his keynotes. Why? They're not here yet. Jobs correctly recognizes that his audience is tired of empty promises, of unfulfilled hopes. As the industry learned the day Adam Osborne pre-announced a suitcase-sized sequel he couldn't deliver, sales fall flat when something a lot better is just around the corner. Rather than hype OS X, Jobs focused on the company's latest release and said the Mac OS, which he characterized as "the core of Apple," had sold 1.2 million copies in two weeks, four times the company's wildest expectations.
Hire a marketing whiz.
After Jobs came back to the CEO chair, Apple canned its long-time ad agency BBDO and rehired the ad agency that helped make it great. Only time will tell whether TBWA Chiat/Day (formerly Chiat/Day) can keep displaying the magic touch it demonstrated with the first ad it produced for Apple (the infamous "Why 1984 will not be like 1984" ad that aired only once during the 1984 Superbowl), but they're off to a reasonable start. At the Boston keynote, Jobs rolled out a "Think Differently" slogan that attempts to encapsulate the idiosyncratic character of the company's users.
Apple fellow Guy Kawasaki has written a number of books on marketing which are worthwhile reading for salespeople and CEOs alike. Check out Selling the Dream or The Macintosh Way.
Think again.
Don't be afraid to challenge your deeply held beliefs. Things change quickly. Is this product still the best solution? What markets are we competitive in? Who are our competitors? Back in 1997, Microsoft viewed Netscape as its competition, and made deals that saw Microsoft Web browsers become the default on both Apple and Wintel platforms. As the U.S. Justice Department recently found in its Nov. '99 "Finding of Fact," this was not good for Netscape's marketshare.
It's the software.
Demonstrate great software. People are willing to pay for greatness, but they have to be shown its advantages. Bill Gates, when he announced his company's commitment to produce a version of Microsoft Office 98 for the Mac, warmed the hearts of many Mac users when he said: "In many ways, it's more advanced than what we've got on the Windows platform. It's not just a port."
Understand your audience.
For example, there was a wild chorus of boos to the announcement that Apple would make Internet Explorer its default browser on the Macintosh. Jobs knew this, and followed it up with "Since we believe in choice...the user can, of course, change the default." When Jobs announced Microsoft's US$150 million investment in Apple, a chorus of boos turned to applause to the news that Microsoft's shares were "non-voting."
In closing, I'd like to leave you with a point from reader Robert Mollot (rmol...@compusmart.ab.ca), with whom I agree completely. He writes: "Listen to your customers, understand the values that drive their buying decision and then market products accordingly."
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