-
Strategies for a discontinuous future.












Thursday, January 08, 2004
 


These guys think Apple has a win-win with the new iPod Mini. Wrong.

Here's why: A true win-win for Apple would change the game. Right now, it's zero-sum: either you buy an iPod, or a Mini, but not both. Basically, the two are substitutes; in a win-win strategy, they would be complements. Better yet, in a platform strategy, they would be what I sometimes call hypercomplements - goods whose value nonlinearly increases when the other is around.

It doesn't matter to Apple that you're choosing Apple, because, as I've pointed, it doesn't really have any competitors - sure, there are people making MP3 players, but there are no realistic substitutes for the iPod. So you have to choose Apple, pretty much, unless you're willing to take a serious hit in some dimension of product value.

A real win-win strategy would have been aimed at getting people to buy both iPods. Sound stupid? I don't think so - you can't really take the big one to the gym, jogging, in rainy London weather, etc. There's plenty of room there for complementarity to be built.

-- umair // 12:50 PM //


search



new


input

due diligence
ventureblog
a vc
techblurbs
tj's weblog
venture chronicles
terranova
the big picture
gigaom
venchar
bill burnham
babak nivi
n-c thoughts
paidcontent
techdirt
slashdot
london gsb
mefi
boingboing
blort
hardwax
betalounge

ing
morgan
chicago fed
dallas fed
ny fed
imf
world bank
nouriel roubini

portfolio
contact

mail.
uhaque (dot) mba2003 (at) london (dot) edu

skype.
umair.haque

atom feed

technorati profile

blog archives