Sunday, September 14, 2008

September 15 readings

In chapter 9 that discusses product competition, the success of the VCR reminds me of the current iPhone applications. With Sony's Betamax, Sony did not permit other manufacturers to improve upon the Betamax standards whereas JVC encouraged others to improve the VCR's standards. With the iPhone applications, Apple has allowed others to sell their applications to iPhone customers and it is up to these outside manufacturers what they would like to charge or how their applications work . As long as it's compatible with the iPhone, all is good to go (am I correct in this assumption?) This move from Apple reminds me of JVC's strategy. Although it is not an exact similar situation, Apple has allowed outside manufacturers to tout/sell their products (applications) which are only useful in the iPhone. So - is this a brilliant move by Apple? Now the manufacturers of these applications will inevitably be working towards the success of the iPhone as well because the success of the iPhone will mean the success of the applications.

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