How Apple finally became an Alpha

I had an email from a frequent reader the other day asking me how it is that I only now consider Apple an Alpha, since they have been innovation leaders since the early 1980s.

The answer goes to the heart of what I learned about Alphas and creation of self-sustaining success in my long-term research, The Alpha Factor Project.  

Here's some history that helps define this:

I recall comparing Apple's first real knock-out innovation, the "Lisa" computer, as I was shopping for my first business computer in 1983.  The Lisa was a forerunner of the modern Mac in that it offered WYSIWYG with a high degree of interactivity.  It looked great as an art-focused computer, but I feared that it might not handle all my standard business needs.  It disappeared shortly after that, because I was obviously not the only one feeling that way.

A few years later, when I owned both a marketing research firm and an ad agency, I had Macs on the agency side and PCs on the research side.  I was forced to do that, because, although the Macs proved themselves far more intuitive and easy to use for what they did, I could not get the software I needed for my research and business applications on a Mac.

Functionally, Apple's product did not meet the minimum requirements.  They were far more reliable in most cases, and they were certainly easier to learn and use, but that did not help me with my minimum functional requirements.

Apple's answer to that was to take pride in that segmentation and to make itself a "cult" product line among artistic-types.  That did little to help it grow, but it certainly made for some loyal customers who took great pride in being "Mac users."  By closing off the ability for programmers to write a broad range of software for the Apple OS, they effectively eliminated the largest segment of the market as potential customers... no matter how "cool" or easy to use their products were.

In the meantime, Microsoft was churning out inferior products and inferior operating systems that made the company one of the most revered (buy financial analysts) and most hated (by users) companies in the world.

What turned Apple into an Alpha were three things:  1) opening up their code to programmers who could finally write software to run on a Mac,  2) raising the bar on product design, and 3) expanding their line to reach an even broader range of customers.

Opening up their code to programmers allowed Macs to finally meet minimum functional needs (the base line for acceptability).  I now have my research, accounting, word processing, spreadsheet, page layout, and every other kind of software I need on my MacBook.  And, because the operating system is still better than MS-DOS, I don't have the daily agony I did when I had to work with DOS-driven programs.

Raising the bar on product design created even more ego-satisfaction (the critical differentiating factor in the Alpha model) than just having an operating system that works better.  Many people describe the tactile and visual experience of owning and handling any of the new Macs in almost transcendental terms.  They make people feel really good and really good about themselves.  They also have created a sense of "significance," every time someone runs up the the holder of a MacBook to see and touch it.  This level of ego-satisfaction drives extreme loyalty, as long as the minimum functional requirements are being met.

Expanding their line of new high-design products has given them more entry points into the Apple family.  This took the already fiercely loyal customer base and expanded it quickly.  The iPhone and iPod created entry points that drove loyalty among a whole new group of users.  Their value was driven by both the same strong functionality that Apple had become know for and new design that was incorporated into all of their products. All of their line now has a high-tactile experience plus a unique and yet pleasing visual appeal, which adds up to an extreme "cool" factor.  

Functionality alone does not make them an Alpha, although lack of minimum requirements held them back for years.  In the case of the iPhone, it was not as functional as some of its pre-existing competitors and it certainly cost more, but that did not stop it from becoming the top-selling "smart phone."  It's following competitors have not been able to overcome Apple's hold.

The real secret to Apple finally became an Alpha was in overcoming its functional deficiencies, increasing the ego-satisfaction fulfillment of the product through design, and making it easier for more people to enter the Apple family form a variety of entry points.  After being the best performing, most innovative product for decades, Apple finally got it right.

If you would like to learn more about how to become an Alpha company, go to www.ballgroup.com or www.thealphafactor.com.  You can also purchase a copy of The Alpha Factor – a revolutionary new look at what really creates market dominance and self-sustaining success at either of these sites or on any online bookstore.