Image via CrunchBase
At the recent Google I/O 2013 Keynote, Google announced a laundry list of new enhancements and services. Solidifying its’ game plan of playing offense rather than defense with innovation. Which, at this writing, is putting the challenge on Apple to respond.
My thoughts shared here are heavily influenced by a brilliant article from Mike Myatt entitled –Leadership Lesson: The Difference Between Google and Apple. Mike is one of our best thinkers on leadership and is the author of Leadership Matters . . . The CEO Survival Manual. Here is Myatt’s view on how Google is gaining the edge on Apple:
“…there is one very big difference between the two – Google plays offense while Apple has recently settled for playing defense. Apple is struggling to maintain its position in the market, while Google is expanding its position.”
Mike goes on to say it is this offensive mindset, which is putting the hurt on Apple. In essence Apple has ceded ground to Google, Samsung, and HTC while taking a defensive stance. The result: Apple’s stock has fallen by over 35%.
What really caught my attention and is well worth noting is the following statement from Mike:
“Google could have made the decision to stay solely focused on search, but they had the foresight to move beyond the certainty of what is to pursue new opportunity by focusing on what if.”
By going on the defensive, Apple has lost its’ way in the very element which allowed them to introduce the world to the iPhone and iPad – foresight. I made this point in my recent conversation with Michael Brenner on his B2B Marketing Insider Blog entitled – Marketing in the Throes of a Buyer Revolution.
In my own humble opinion, I believe this to be a temporary setback for Apple. There is no question the delay until fall to introduce their newest innovations, as most pundits believe, is hurting them. Time will tell.
B2B Marketing Lesson
Of note is Google’s ability to turn massive analytics and insight data (what is) into a game plan focused on foresight (what if). Taking a leadership position on providing a future-oriented vision to consumers on the possibilities of what their future can look like with Google. In essence, sharing its’ foresight gained as well as making it foundational to Google marketing.
A key lesson for B2B Marketers is this: the new digital age requires us to build a capability of understanding buyer foresight. It is no longer enough to gain buyer insight and focus on the “what is” as Myatt aptly points out. B2B Marketing and Sales will need to build competencies in understanding the “what if” scenarios they as well as their customers can see together. This is what it will take to be a market leader in the new digital age.
Turning Buyer Insight Into Buyer Foresight
During the past few years, there has been much focus on analytics and insights in the B2B arena. However, it is a focus on what has already happened. There is value for certain. What we need though is to expand – not merely respond. Recently, I had an engaging conversation on the Dan McDade’s PointClear PowerView segments on this concept of buyer predictability.
In my recent article 3 Ways to Be a Market Leader with Buyer Foresight, I offered some steps B2B entities could take to build Buyer Foresight into their organization’s DNA. Of most importance is gaining insight with foresight in mind. This means more of what my Dad used to say – “you have to look the person in the eye to know what they are thinking”. More often than not, this takes a level of expertise in on-site qualitative research well worth the time and investment.
Turning buyer insight into buyer foresight takes a new level of commitment. Google made a commitment to foresight. This level of foresight and foresight sharing has allowed them to win at the economic game of leapfrogging.
Now they are reaping the rewards.
Maybe there is some value to formal business education after all.
You learn that when you are breaking into an established market, it’s OK to spend 100 x profits on getting new business, because market share is mind share, no matter the cost.
Then after you have gained enough market share to be noticed, you have to start focusing on profits. Why? Because you can’t lose money on every widget sold and make it up on the volume.
Apple sells phones, tablets and computers with a few other supporting bits and pieces (apps, music, video, etc. and a tiny iAds business on the side).
Google exists only to sell advertising, and to maximize that they offer a few other supporting bits and pieces (Google Maps, Android, etc.).
Apple’s largest business is smart phones where they haul in the vast majority of the profits of the entire industry. Samsung hauls in 90% of the remaining profits with a customized version of Android, and the rest of the industry is almost a rounding error.
Oh, “market share.” Google is winning that “war” because it supports their mobile advertising profits, and if their Android licensees barely make enough to serve chocolate-dipped strawberries at their shareholders meetings, so what?
Apple is content to haul in truly massive profits on handsets and apps, and they don’t care about market share as long as they have serious “profit share.”
I thought I saw that Apple was the most profitable company in history. You suggest that they are losing a war with another company that isn’t even in the same business.
Google will always do well in advertising because they are so focused on that. They don’t have nearly the profits in their business that Apple has in theirs, but they are winning because the world buys more cheap Android phones than iPhones? Can you eat merit badges received for units sold? If so, invest in Google. If you prefer spendable money, invest in Apple.
What happened to good old capitalist profits that caused this incredible loss of respect?
The Android merit badge will have historical value though when Google abandons Android next year in favor of Chrome for all their phones, tablets and laptops. But Android is winning, right?
Thank you for your comment and taking the time to offer your perspectives. Much appreciated. I believe both icons of the new digital age are attempting to win the hearts and minds of consumers and businesses alike. I wouldn’t necessarily call it a war, but a battle of ecosystems. Both wants us to be tied to their ecosystems because change is hard. Google is evolving theirs while Apple is more established but evolution continues. My hunch is Apple is going to surprise a lot of folks this fall – there is too much talent we know is not sitting on their hands.
Thanks,
Tony