Tags: Essays On Alternative EnergyMy Summer Vacation EssayEssay On Quran MajeedMaking Better Choices EssayEssay On Dignity Of Hard Work In UrduEssentials Of A Business PlanLaw Day Essay 2009An Article About The No Child Left Behind Bill EssayMy First Day Of School Essay In Marathi
Consider Sony Corp.’s Walkman: It made music personal and portable back in 1979!
, Biz Stone, Evan Williams and Jack Dorsey were working on a new venture called Odeo, a podcasting service.
Odeo was in something of a creative slump, and Dorsey wondered if a short messaging service that would enable everyone in the company to communicate with others in the group might be of some help.
For Apple, there was one more analog that put all the pieces together, courtesy of The Gillette Co.’s razors and razor blades.
Gillette sold razors at low break-even prices and made its money selling the blades. Jobs’s hypothesis was that people would pay for easy to use, licensed downloadable music and that a business model of high gross margins on the i Pod with razor-thin margins in the i Tunes store would be profitable while keeping the music industry off his back.
Most of the time, breaking through to a better business model takes time.
And it takes errors, too, errors from which you learn.
Jobs showed how well he understands the value of applying an existing idea to his business: “Picasso had a saying: he said good artists copy, great artists steal …
and we have always been shameless about stealing great ideas.” Apple’s revenue on i Pod sales in the first year alone was 3 million.
But what separates the ultimate successes from the rest is what they do when their first plan sputters.
Do they lick their wounds, get back on their feet and morph their new insights into great businesses, or do they stick to their original plan?