The article "How Apple Does it" written by Lev Grossman, in October of 2005, was devoted to new products developed by Apple ipod as well as methods implemented by the company in producing new products and services. In order to assess this product and evaluate the impact it has made on the development of music and online digital industry, the author of the article attempted to highlight several important points related to the business strategy of Apple.
According to the conventional wisdom, described in the article, the Apple is operating like closed mini economy, and thus the company might be doomed as it attempts to do everything at once. Apple produced hardware, operating system for it and programs; traditional approach would allow Apple to license some of its products to other companies that specialize in the development of the products and then access the products produced by the companies mentioned.
However in my opinion, the company would really increase the efficiency and competitiveness of its products if it followed more traditional approach as in this case, new innovations and consequently new products might appear much quicker, then the current policy adopted by the company. Huge diversification in one company might erode specialization, which is the cornerstone of innovations; it certainly does mean that differentiation and strategy adopted by Apple might not be successful in some circumstances, as the example of ipod clearly indicates, yet in my opinion it was rather the exception from the rule rather than the result of it.
In order to access the effectiveness of the strategy implemented by the company, one should understand the princ ...