Early this morning Microsoft acquired Nokia for €3.79 billion (plus €1.65 billion for patents). It is a deal that makes no sense. While industry observers love to pontificate about mergers and acquisitions, the reality is that most ideas are value-destroying. It is far better to form an alliance or partnership; most of the benefits, none […]
Motivation and Marx
On this (US) Labor Day weekend, I’m thinking about motivation, and the role it plays in creating great products that consumers love. It seems patently obvious that products created for love or passion are superior than those created for money or fear, yet the compensation model used in most of business hews much more closely […]
Rebuilding the World Technology Destroyed
The Washington Post was headed for bankruptcy, and was finally sold for a pittance. Its buyer began his career on Wall Street, only to move into a burgeoning new industry, where he truly made his wealth. The newspaper he bought has a noble history, but will certainly earn losses for years to come. I’m talking […]
Why Microsoft’s Reorganization Is a Bad Idea
Steve Ballmer is reorganizing Microsoft into a functional organization: it is a mistake that misunderstands the company he leads.
When Apple Moves Fast
In October 1999, Steve Jobs announced that the future of the Mac was video. In January 2001, Jobs laid out a new strategy: the Mac would be a digital hub, and their first focus would be music. In 15 months, the entire strategy shifted, and the company along with it. “I felt like a dope,” […]
The Intel Opportunity
A new CEO has taken over Intel. Their core business, upon which the company has been built, is floundering. Does the new CEO, who is not really new at all (he’s the current COO), have the vision to ensure Intel’s continued success? I’m not talking about Brian Krzanich, who today was promoted from COO to […]
Two Bears
There are two Apple bear cases; only one applies to Apple, though, and the other applies to Samsung.
Apple the Black Swan
Apple does everything wrong. They don’t do market research. They don’t segment the market with multiple models. They don’t have promotions. They don’t diversify. They don’t have divisions. They don’t have multiple P&Ls. They don’t pursue market share above all else. They don’t take on debt.1 They don’t pay dividends (or big enough ones, now). […]
Apple, Samsung, and the Parable of the Model-T
Steve Jobs was famously fond of the Henry Ford adage: “If I had asked people what they wanted, they would have said faster horses.” It’s true! New products – new categories – require vision and an unflinching focus on the job to be done (i.e. transport), not simply enhancing or extending solutions that already exist […]
Value Chains
The Samsung Galaxy 4 reviews should be rolling in shortly. They will recount the screen, processor, camera, face detection tech — every speed and feed there is will be dissected, discussed, and scored. Said features will be compared, first to the recently released HTC One, and most certainly to the iPhone 5. And most of […]