Apple has been able to create demand with good products that most of its competitors have not been able to match yet. The day Apple's products won't be "innovative" again, demand will decrease for sure. We are still waiting for the iPhone or the iPad killers from other manufacturers. Until then Apple products will still sell like hot cake.
"Samsung Electronics has overtaken Apple to become the world’s largest seller of smartphones as shipments rose 40 per cent in the third quarter, shaking off legal wrangling between the two companies over technology patents." reports Song Jung today in his blog Samsung beats Apple in mobile stake.
It seems that Apple's conpetitors are enjoying the "Demand Is the Alpha Dog" paradigm as well.
@Hospice you said it best. Good products that are user friendly create the demand that competitors try to match. The latter also benefit from the demand the trailblazers created too.
Apart from having good products that will have the assured demand , the company also need to have assured supply of quality components , in time, to meet the demand. If the timing is not matched then all that assured emand will wilt away and those prospective custmers will start looking at your competitor's products.
So having a close knit supply network will guarantee the successful meeting of the demand.
@Hospice_Houngbo, Its not surprising. I wouldn't expect Apple's competitors to just fold their arms and not seek a strategic move to not only catch up but compete with Apple.
The theory of demand and supply strategy employed by Apple seems to be catching now, that even RIM and Nokia appeared to have integrated this in their marketing strategies. I hope it works for them too as it did Apple.
I watched the Nokia World with curiosity and expectation. It seemed pretty clear to me that Nokia has a new strategy that might work this time. Creating demand and supply afterwards sounds like the most logical decision, especially these days when consumers think twice before buying a new and expensive product.
Nokia seems to be more focused on supplying the youngest users in developing countries and has spent some time having close ups, creating demand.
I would add one more step. They have to create the product (assuring that the product is producable with acceptable quality), create the demand, and meet the supply.
Apple products sell like hot cakes because they are not only innovative but also fast, with great features and reliable. At the end of the day, you are always happy with your investment on an Apple product.
Bolaji, you mention the strategy to create demand before supplying the product. I agree this sounds like a strong marketing manouver. But I am intrigued how a product company can create of identify clear and quantified demand before it actually decides to manufacture the product. What is it that Apple has been doing differently. Maybe, it was the Jobs effect where he presented every new product in the most charismatic way possible? How much did he have an impact on creating an exclusive demand for Apple?
I am of the opinion that the demand for products is often created by improvement in functionality and portability of existing appliances or by creation of a brand new product to meet a need in daily functioning of people in general. Either method ends with a new product that creates enthusiasm and the drive for demand for the product. A little charisma in the presentation of the product (hype!) fuels the enthusiasm for the product.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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