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Gary Hamel’s Management 2.0 - WSJ
A look at newways of managing
The Hole in the Soul of Business
February 22, 2010, 1:49 PM ET
Deconstructing Apple — Part I (excerpt)
Over the past decade, the pride of Cupertino hasproduced a mind-boggling parade of accomplishments.
– Having been dismissed as a footnote in the personal computer industry, Apple is now the market leader in computers costing more than $1,000. In onerecent month, its market share in this segment exceeded 90%. ii
– Though it was a late entrant into the mobile phone business, Apple currently makes more money from roughly 3% of the global handsetmarket than Nokia makes from more than 30%. iii
– Within six years of launching its online music store in 2003, Apple had become the world’s largest music retailer. iv
– Apple’s first physical storeopened in 2001. Five years later, Apple’s sparse, elegant shops were generating four times more revenue per square foot than its big box competitors,v and its Fifth Avenue store in New York isthought to be the most profitable retail outlet in the world.vi
– At $180 billion, Apple’s market value is currently three and half times that of Nokia, and more than 60% higher than Hewlett-Packard’s—acompany with three times Apple’s revenue.
So rather than fretting about the prospects for the iPad, clever Apple watchers and envious wannabes should be asking themselves: How in the world could onecompany have accomplished all this? How do you build an organization that is capable of reinventing not just one industry but four—computing, music, electronics retailing and mobile phones. How doyou do the unprecedented repeatedly?
Some might say you have to start with Steve Jobs, Apple’s prescient and exacting boss. While it’s impossible to imagine Apple without Jobs, the company’s...