Create Complimentary Product Offerings Without a Lead Loss Generator:

Sales of the iPod would drive sales of the iMac, and vice versa. They got a triple bang for the buck in advertising by invigorating the Apple, Mac, and iPod. Steve Jobs completely dominated the market for music players by putting all of his advertising spending on the Mac into the iPod. So the iPod advertised more aggressively at about 100 times more spend, than the closest competitor. The beautiful iPod cost $399, some people said that iPod stood for “idiots price our devices.” The iPod was about intersection between technology & arts, software & music. 

Don’t Be Afraid To Cannibalize Yourself Because If You Don’t Others Will:

When iTunes was released, Microsoft managers realized that they needed to create direct user value with an end to end service. Gates felt like an idiot once again, and Microsoft wanted to move forward although it was caught flat footed by Apple. So Microsoft tried to copy iTunes. When Apple created the compatible iPod, and iTunes systems for other PCs it meant that PC users would not have to buy Macs to use the iPod. Steve Jobs did not want to put iTunes on the PC. The cannibalization of not selling Macs was out weighed by the potential iPod sales. Once iPods went PC, Apple was on its way to be extremely extremely lucrative. Jobs said that iTunes for Windows was the best application for PCs ever. When Microsoft came up with Zune, it was obvious that they did not care about the music or the product. Steve Jobs believed that an iPhone might cannibalize sales for Mac, but it would not deter Jobs. When the inventor of the Walkman tried to compete against Apple, they were held back by cannibalization because Sony had a music department etc etc. In 2004, the iPod Mini was the next innovation which helped eliminated the portable music player competitions. Apple’s market share in the portable music player industry went from 35% to 75% in 18 months. The iPod Shuffle also helped grow it further because people like to be surprised. Jobs decided that they should get rid of the screen, you don’t need to navigate all you needed was to skip over the songs you heard.

This is an analysis based on Steve Jobs by Walter Isaacson and other sources of research. Enjoy.

More from Steve Job’s Life	by Walter Isaacson
Location Really Does Matter for Entrepeurship	Childhood Shapes Your Thinking
Go Get What You Want, If You Have the Courage	Education Is For Conformists
Assume That You Will Die Young	Go To India
Pranking People Requires Creative Thinking	Starting A Company Is Very Difficult
Meet a Brilliant & Nobel Engineer	Meetups Bring Insanely Great Ideas Together
Knowing What You Wanted to Do	Exclude Relevant Information Where Necessary
Have Discipline Over Body and Mind	Picking A Name is as Simple As Picking Apples
Crime Does Pay!!??	Sharing Ideas Is Fine Up To A Point
Most Good Ideas Have to Be Force Down Peoples Throats	Xerox Parc
Run Your Company Our Of Your Parents House	Mike Markkula’s Marketing Theory Is Built Around Three Areas
MacKenna’s Advertising Style Worked	Don’t Worry About A Business Plan Until You Need Investment in a Serious Venture
Create A Simple Product For Households	Your Product Needs to be a Full Simple Package
Jobs’ Management Style Was “Shit” from ’77 to ’85	A Startup Will Become Impersonal With Success
Apple III was a bastard child	Being Abandoned = Ignoring Reality
Good Artists Borrow, Great Artists Steal	Surround Yourself With “A Players”
Reality Distortion Field	Be At The Nexus of Humanities and Technology
Believe In A Closed System & Product Control	Market Research Is For Idiots
Motivate With The Big Picture	Unhealthy Competition Within A Company Can be Corrosive
The Best & Most Innovative Products Don’t Always Win	Eras Are Defined by Partnerships & Rivalry – Gates Versus Jobs Round 1
Genius Versus Shit-Head	The Boardroom Showdown & Emotionality
Advertising Does Matter	A Messy Company Can Still Work
A Clean Factory Is Insanely Great But The Product Has To Sell	Being Right Isn’t As Important As Winning
Imperfection Is A Moral Wrong	Bringing In An Outside Expert Can Be Costly
The Original Macintosh Had Bad Sales	Fall From Grace Through Management Incompetence
Finding Similarities Between Yourself & Your Business Partner May Not Be Good	Eras Are Defined By Partnerships & Rivalry – Gates Versus Jobs Round 2
Force An Ultimatum To Get Control of a Company	Never Tell The Allies of Your Opposition That You’re Planning a Coup
Brilliant Failures Help You Grow	Design Should Not Trump Processing
Do Not Disrespect Your Potential Business Partners	Get Real On Your Lean Startup
Get A VC Who Missed Out On A Previous Winning Opportunity	Avoid The Problem of Focusing on the Small
Gain Financial Control Against Your Business Partners	Rivalry of the Ants & Breaking With Disney
Build A Board That Cannot Operate Independently of the CEO	Do Not Chase Profits, Chase Value
Do Not Force Other Businesses Into Your Closed System	How To Save A Dying Tech Company – Fire the Board Or Resign
Merge Your Venture With A Giant That You Can Take Over	Targeting the Education Market Is Not Lucrative
How to Save Dying Tech Company – Return To Your Successful Roots	How to Save a Dying Tech Company – Make Products Not Profit, Fundamentally
Skate Where the Puck’s Going, Not Where It’s Been	The Loser Now Will Be Soon To Win
The Internet Is Made For Music	Brand Yourself Differently
Don’t Be Afraid to Cannibalize	Create Complimentary Product Offerings Without a Lead Loss Generator
Focus On What People Really Want…1,000 Songs	Google’s “Don’t Be Evil Mantra” is Bullshit
Get Yourself Into the Cloud & A Castle	Don’t Fear Change In Industry, Anticipate It
Create An Inventory Management System & Build a Store That Works	Converge Old Devices Into 1 New Device
Do Not Ignore Medical Diagnoses	Make Peace With Your Old Enemies

Brand Yourself Differently:

Think Different – the new slogan was not perfectly grammatical if you think about what you are trying to say: it is most appropriately think differently. Steve Jobs explained that Apple’s future in 1997 was to think differently. The craziness of Apple’s customer base was that they had a sense of creativity and uniqueness that others did not. Steve Jobs argued that Apple was distinctive as a brand, and they formulated a brand image campaign to celebrate what creative people could do with their Apple computers. The Think Different campaign was about reminding themselves about who they were. Here’s to the crazy ones, who think differently. Their television commercial was historic, as well as the posters for Think Different. Jobs believed in the renegade brand that people would choose because it made them feel proud and exclusive.

This is an analysis based on Steve Jobs by Walter Isaacson and other sources of research. Enjoy.

More from Steve Job’s Life	by Walter Isaacson
Location Really Does Matter for Entrepeurship	Childhood Shapes Your Thinking
Go Get What You Want, If You Have the Courage	Education Is For Conformists
Assume That You Will Die Young	Go To India
Pranking People Requires Creative Thinking	Starting A Company Is Very Difficult
Meet a Brilliant & Nobel Engineer	Meetups Bring Insanely Great Ideas Together
Knowing What You Wanted to Do	Exclude Relevant Information Where Necessary
Have Discipline Over Body and Mind	Picking A Name is as Simple As Picking Apples
Crime Does Pay!!??	Sharing Ideas Is Fine Up To A Point
Most Good Ideas Have to Be Force Down Peoples Throats	Xerox Parc
Run Your Company Our Of Your Parents House	Mike Markkula’s Marketing Theory Is Built Around Three Areas
MacKenna’s Advertising Style Worked	Don’t Worry About A Business Plan Until You Need Investment in a Serious Venture
Create A Simple Product For Households	Your Product Needs to be a Full Simple Package
Jobs’ Management Style Was “Shit” from ’77 to ’85	A Startup Will Become Impersonal With Success
Apple III was a bastard child	Being Abandoned = Ignoring Reality
Good Artists Borrow, Great Artists Steal	Surround Yourself With “A Players”
Reality Distortion Field	Be At The Nexus of Humanities and Technology
Believe In A Closed System & Product Control	Market Research Is For Idiots
Motivate With The Big Picture	Unhealthy Competition Within A Company Can be Corrosive
The Best & Most Innovative Products Don’t Always Win	Eras Are Defined by Partnerships & Rivalry – Gates Versus Jobs Round 1
Genius Versus Shit-Head	The Boardroom Showdown & Emotionality
Advertising Does Matter	A Messy Company Can Still Work
A Clean Factory Is Insanely Great But The Product Has To Sell	Being Right Isn’t As Important As Winning
Imperfection Is A Moral Wrong	Bringing In An Outside Expert Can Be Costly
The Original Macintosh Had Bad Sales	Fall From Grace Through Management Incompetence
Finding Similarities Between Yourself & Your Business Partner May Not Be Good	Eras Are Defined By Partnerships & Rivalry – Gates Versus Jobs Round 2
Force An Ultimatum To Get Control of a Company	Never Tell The Allies of Your Opposition That You’re Planning a Coup
Brilliant Failures Help You Grow	Design Should Not Trump Processing
Do Not Disrespect Your Potential Business Partners	Get Real On Your Lean Startup
Get A VC Who Missed Out On A Previous Winning Opportunity	Avoid The Problem of Focusing on the Small
Gain Financial Control Against Your Business Partners	Rivalry of the Ants & Breaking With Disney
Build A Board That Cannot Operate Independently of the CEO	Do Not Chase Profits, Chase Value
Do Not Force Other Businesses Into Your Closed System	How To Save A Dying Tech Company – Fire the Board Or Resign
Merge Your Venture With A Giant That You Can Take Over	Targeting the Education Market Is Not Lucrative
How to Save Dying Tech Company – Return To Your Successful Roots	How to Save a Dying Tech Company – Make Products Not Profit, Fundamentally
Skate Where the Puck’s Going, Not Where It’s Been	The Loser Now Will Be Soon To Win
The Internet Is Made For Music	Brand Yourself Differently
Don’t Be Afraid to Cannibalize	Create Complimentary Product Offerings Without a Lead Loss Generator
Focus On What People Really Want…1,000 Songs	Google’s “Don’t Be Evil Mantra” is Bullshit
Get Yourself Into the Cloud & A Castle	Don’t Fear Change In Industry, Anticipate It
Create An Inventory Management System & Build a Store That Works	Converge Old Devices Into 1 New Device
Do Not Ignore Medical Diagnoses	Make Peace With Your Old Enemies

The Internet Is Made For Music:

Napster, Limewire, and other music file sharing websites allowed the illegal downloading of music on a massive scale, and a precipitous decline in sales of traditional distribution platforms for music which began dropping by 9% in 1998. The executives at the music companies were desperate to agree on a common standard for copy-right protection. If the music industry could agree to the coding of music across the industry, they might be able to get a head of the Peer-to-Peers. Sony and Universal came up with Press-Play. EMI had their own system alternative, each had a subscription based system where you would rent the music, and the two competing solutions would not license each other’s songs. The interfaces were clunky, and the services were terrible, the record companies did not get how to solve the problem. Warner/Sony wanted to close a deal with Jobs, largely because Warner/Sony did not know what to do. Steve Jobs was opposed to the theft of creative products even though he bootlegged Bob Dylan in the 1970s. If people copied Apple software, there would be no incentive for new music other than from the passion of musicians.

Creative companies never get started, and it’s wrong to steal, and it hurts your own character according to Jobs. iTunes was the alternative to the brain-dead services, iTunes was the legal alternative to P2P where everyone wins: a) users would no longer steal, b) record companies generate revenue, c) artists get paid, and d) Apple disrupts the music industry. Steve Jobs had a tough pitch with record companies because of the pricing model, but he used the fact that Apple was still only 5% of the computer market to convince them that such a deal was not have a major impact oo their bottomline. So if iTunes was destructive, it would not be quite so too damaging. Apple was a closed system, and so these Record companies could use Apple as means of controlling the MP3s.

Record companies got $0.77 of the $0.99. People wanted to own music, not rent, or subscribe to it. The subscription model did not make as much sense. Record companies had made a lot of money by having artists produce two or three good songs with 10 fillers, the iTunes store would allow users to select only the songs they liked, further upsetting Record companies. Steve Jobs’ response was that piracy had already deconstructed the album. He closed deals across the music industry which was astounding. Jobs bridged the gap between technology and art.

This is an analysis based on Steve Jobs by Walter Isaacson and other sources of research. Enjoy.

More from Steve Job’s Life	by Walter Isaacson
Location Really Does Matter for Entrepeurship	Childhood Shapes Your Thinking
Go Get What You Want, If You Have the Courage	Education Is For Conformists
Assume That You Will Die Young	Go To India
Pranking People Requires Creative Thinking	Starting A Company Is Very Difficult
Meet a Brilliant & Nobel Engineer	Meetups Bring Insanely Great Ideas Together
Knowing What You Wanted to Do	Exclude Relevant Information Where Necessary
Have Discipline Over Body and Mind	Picking A Name is as Simple As Picking Apples
Crime Does Pay!!??	Sharing Ideas Is Fine Up To A Point
Most Good Ideas Have to Be Force Down Peoples Throats	Xerox Parc
Run Your Company Our Of Your Parents House	Mike Markkula’s Marketing Theory Is Built Around Three Areas
MacKenna’s Advertising Style Worked	Don’t Worry About A Business Plan Until You Need Investment in a Serious Venture
Create A Simple Product For Households	Your Product Needs to be a Full Simple Package
Jobs’ Management Style Was “Shit” from ’77 to ’85	A Startup Will Become Impersonal With Success
Apple III was a bastard child	Being Abandoned = Ignoring Reality
Good Artists Borrow, Great Artists Steal	Surround Yourself With “A Players”
Reality Distortion Field	Be At The Nexus of Humanities and Technology
Believe In A Closed System & Product Control	Market Research Is For Idiots
Motivate With The Big Picture	Unhealthy Competition Within A Company Can be Corrosive
The Best & Most Innovative Products Don’t Always Win	Eras Are Defined by Partnerships & Rivalry – Gates Versus Jobs Round 1
Genius Versus Shit-Head	The Boardroom Showdown & Emotionality
Advertising Does Matter	A Messy Company Can Still Work
A Clean Factory Is Insanely Great But The Product Has To Sell	Being Right Isn’t As Important As Winning
Imperfection Is A Moral Wrong	Bringing In An Outside Expert Can Be Costly
The Original Macintosh Had Bad Sales	Fall From Grace Through Management Incompetence
Finding Similarities Between Yourself & Your Business Partner May Not Be Good	Eras Are Defined By Partnerships & Rivalry – Gates Versus Jobs Round 2
Force An Ultimatum To Get Control of a Company	Never Tell The Allies of Your Opposition That You’re Planning a Coup
Brilliant Failures Help You Grow	Design Should Not Trump Processing
Do Not Disrespect Your Potential Business Partners	Get Real On Your Lean Startup
Get A VC Who Missed Out On A Previous Winning Opportunity	Avoid The Problem of Focusing on the Small
Gain Financial Control Against Your Business Partners	Rivalry of the Ants & Breaking With Disney
Build A Board That Cannot Operate Independently of the CEO	Do Not Chase Profits, Chase Value
Do Not Force Other Businesses Into Your Closed System	How To Save A Dying Tech Company – Fire the Board Or Resign
Merge Your Venture With A Giant That You Can Take Over	Targeting the Education Market Is Not Lucrative
How to Save Dying Tech Company – Return To Your Successful Roots	How to Save a Dying Tech Company – Make Products Not Profit, Fundamentally
Skate Where the Puck’s Going, Not Where It’s Been	The Loser Now Will Be Soon To Win
The Internet Is Made For Music	Brand Yourself Differently
Don’t Be Afraid to Cannibalize	Create Complimentary Product Offerings Without a Lead Loss Generator
Focus On What People Really Want…1,000 Songs	Google’s “Don’t Be Evil Mantra” is Bullshit
Get Yourself Into the Cloud & A Castle	Don’t Fear Change In Industry, Anticipate It
Create An Inventory Management System & Build a Store That Works	Converge Old Devices Into 1 New Device
Do Not Ignore Medical Diagnoses	Make Peace With Your Old Enemies

The Loser Now Will Be Soon To Win:

Jobs believed Amelio was a bozo. Gil Amelio did not actually present or sell himself particularly well, and he famously bombed on stage at MacWorld in 1996. That particular presentation was very poor and unplanned. Once back inside Apple, Jobs was too honest and spoke with one of the board members Willard who asked Jobs what he thought about Amelio. Jobs said that Amelio was not in the right job, and then added that Gil Amelio was the worst CEO ever. Famously, Gil Amelio had explained to a journalist that “Apple is like a ship, that ship is loaded with treasure, but there’s a hole in the ship. And my job is to get everyone to row in the same direction.” That lack of logic in this statement spoke to Amelio’s lack of efficiency as a leader.

Ellison tried to call for the drafting of Steve Jobs as CEO of Apple. When Amelio confronted Jobs about the possible takeover, Jobs denied any of it but refused to declare that he was not positioning himself for a takeover. Jobs loved to dish out flattery with Amelio, meanwhile Jobs was busy turning the board against Amelio, and Apple’s dire situation financially. People were leaving Apple, and thinking of leaving Apple which is never good when your people are an important asset. Amelio was fired because he was incompetent, but once Jobs was offered the CEO job, Steve Jobs moved into the interim CEO because he was still running Pixar. After years in the wilderness, Jobs was back at the top of Apple. The first thing he did there was to commit a subtle by significant vindictive act: Jobs hated the Newton personal assistant because you needed a stylus and also because the Newton was one major innovation of John Scully’s. Scully was the man who kicked Jobs out of Apple in 1985. Jobs cancelled the Newton.

This is an analysis based on Steve Jobs by Walter Isaacson and other sources of research. Enjoy.

More from Steve Job’s Life	by Walter Isaacson
Location Really Does Matter for Entrepeurship	Childhood Shapes Your Thinking
Go Get What You Want, If You Have the Courage	Education Is For Conformists
Assume That You Will Die Young	Go To India
Pranking People Requires Creative Thinking	Starting A Company Is Very Difficult
Meet a Brilliant & Nobel Engineer	Meetups Bring Insanely Great Ideas Together
Knowing What You Wanted to Do	Exclude Relevant Information Where Necessary
Have Discipline Over Body and Mind	Picking A Name is as Simple As Picking Apples
Crime Does Pay!!??	Sharing Ideas Is Fine Up To A Point
Most Good Ideas Have to Be Force Down Peoples Throats	Xerox Parc
Run Your Company Our Of Your Parents House	Mike Markkula’s Marketing Theory Is Built Around Three Areas
MacKenna’s Advertising Style Worked	Don’t Worry About A Business Plan Until You Need Investment in a Serious Venture
Create A Simple Product For Households	Your Product Needs to be a Full Simple Package
Jobs’ Management Style Was “Shit” from ’77 to ’85	A Startup Will Become Impersonal With Success
Apple III was a bastard child	Being Abandoned = Ignoring Reality
Good Artists Borrow, Great Artists Steal	Surround Yourself With “A Players”
Reality Distortion Field	Be At The Nexus of Humanities and Technology
Believe In A Closed System & Product Control	Market Research Is For Idiots
Motivate With The Big Picture	Unhealthy Competition Within A Company Can be Corrosive
The Best & Most Innovative Products Don’t Always Win	Eras Are Defined by Partnerships & Rivalry – Gates Versus Jobs Round 1
Genius Versus Shit-Head	The Boardroom Showdown & Emotionality
Advertising Does Matter	A Messy Company Can Still Work
A Clean Factory Is Insanely Great But The Product Has To Sell	Being Right Isn’t As Important As Winning
Imperfection Is A Moral Wrong	Bringing In An Outside Expert Can Be Costly
The Original Macintosh Had Bad Sales	Fall From Grace Through Management Incompetence
Finding Similarities Between Yourself & Your Business Partner May Not Be Good	Eras Are Defined By Partnerships & Rivalry – Gates Versus Jobs Round 2
Force An Ultimatum To Get Control of a Company	Never Tell The Allies of Your Opposition That You’re Planning a Coup
Brilliant Failures Help You Grow	Design Should Not Trump Processing
Do Not Disrespect Your Potential Business Partners	Get Real On Your Lean Startup
Get A VC Who Missed Out On A Previous Winning Opportunity	Avoid The Problem of Focusing on the Small
Gain Financial Control Against Your Business Partners	Rivalry of the Ants & Breaking With Disney
Build A Board That Cannot Operate Independently of the CEO	Do Not Chase Profits, Chase Value
Do Not Force Other Businesses Into Your Closed System	How To Save A Dying Tech Company – Fire the Board Or Resign
Merge Your Venture With A Giant That You Can Take Over	Targeting the Education Market Is Not Lucrative
How to Save Dying Tech Company – Return To Your Successful Roots	How to Save a Dying Tech Company – Make Products Not Profit, Fundamentally
Skate Where the Puck’s Going, Not Where It’s Been	The Loser Now Will Be Soon To Win
The Internet Is Made For Music	Brand Yourself Differently
Don’t Be Afraid to Cannibalize	Create Complimentary Product Offerings Without a Lead Loss Generator
Focus On What People Really Want…1,000 Songs	Google’s “Don’t Be Evil Mantra” is Bullshit
Get Yourself Into the Cloud & A Castle	Don’t Fear Change In Industry, Anticipate It
Create An Inventory Management System & Build a Store That Works	Converge Old Devices Into 1 New Device
Do Not Ignore Medical Diagnoses	Make Peace With Your Old Enemies