Just over a year, I linked to this piece by Ben Bajarin is which he posits that “Apple has customers not competition.” Some may find this absurd given Apple many battles with the likes of Mircosoft, IBM and more recently Samsung. However,
Horace Dedu:
[su_quote] …Therefore, appealing to Apple to change its strategy, operations or even its core beliefs in response to a competitor’s behavior is deeply misguided. The cause of success and failure in the marketplace is based on being hired by the customer to get a job done. Once hired, the chances are that the trust is secured and the relationship continues even if alternatives are available. There is comfort in the knowledge of whom you’re working with.
This aspect of trusted relationship between the buyer and the product and the interweaving of ‘brand’ (aka intentions) of the hired is the root of loyalty. Of course, loyalties can be betrayed and trust can be lost. But that implies that the primary responsibility of the manager is the creation and preservation of trust. When seen in this light, an alternative axiom becomes clear:
“Great companies don’t have any competition.”
Great companies are “monopolists of customer trust” and are unaffected by alternatives. They are positioned on and nailing the job their products and services are hired for. The alternatives must not only duplicate the exact job (which they almost never do), but they must also overcome the switching costs.
Remember this when analyzing the impact of yet another competitor and considering the “Apple must fix/do X or else” assertions.[/su_quote]
