Borja Regueral and Laura Hernández GarvayoJune, 1st 2013Why Steve Jobs doesn´t like Flash?1
2INTRODUCTIONTECHNICAL REASONS AGAINST FLASHBUSINESS REASONS AGAINST FLASHCONCLUSION
Apple´s business model3SOFTWAREENGINEERINGHARDWAREMANUFACTURING RETAILSALESSTRATEGYTime: 1998 2002 2008 2011
Source: INSEAD Blue Ocean Strategy InstituteINTRODUCTIONApple´s Financial Performance 1995-2011and since 2011?
Source: INSEAD Blue Ocean Strategy InstituteINTRODUCTIONHow it works?
61. “All standards pertaining to the web should be open”.Adobe’s Flash products areproprietary,and controlled byTECHNICAL REASONS“The use of Flashin websites is amajor problem forour community.“Stallman, 2004Steve Jobs, 2010"Companies building websitesshould beware of proprietaryrich-media technologies likeAdobes Flash and MicrosoftsSilverlight. Youre producingcontent for your users and theressomeone in the middle decidingwhether users should see yourcontent.“Founder of Mozilla, Nitot, 2008“Flash is today thebaseline format on theweb. The problem withFlash is that its not anopen standard.“CSS creator, H.Wium Lie,2007
93. Can Apple rely on Adobe´s technical performance?TECHNICAL REASONS
10“Our motivation is simple : we want to providethe most advanced and innovative platformto our developers,and we want themto stand directly on the shoulders of this platform andcreate the best apps the world has ever seen.We want to continually enhance the platform so developers can create even moreamazing, powerful, fun and useful applications.Everyone wins: we sell more devices because we have the best apps, developers reach a wider and wider audience and customer base, and users are continually delighted by the best and broadest selection of apps on anyplatform”
BUSINESS REASONS1. Control the platform of the applications112.ControlSalesChannel Only Apple´s customers!
BUSINESS REASONS123. And if you couldcontrol the platforms of theinternet?
OPEN QUESTION13What do YOU think?And Google?Does your Android support Flash?Is Apple always right?Do you like Apple maps?
14EXHIBITS:• SWOT analysis• Apple business model• Worldwide smartphone operating system share• Adobe business model
1. SWOT ANALYSIS15StrengthsCompany strongly positioned forthe quality and innovation of itsproducts.Human Resources highly trainedGreat prestige brandShine, beautiful products with thedesign of the marketIt develops its own software fortheir productsWeaknessesHigh price of its productsGreat restriction on the admissionof third-party applicationsHeavily criticized in some versionsof their productsOpportunitiesHuge demand for its productsHigh customer loyalty. Itguarantees the permanence of itscustomers and generates theattraction of new consumersMobile market is continuouslyexpanding. Apple can leverage itsestablished position in digitaldistributionThreatsHigh market competition. Marketcompanies are quick to sell verysimilar products on the market.Apple is under anti-trust lawsuitsand in patents litigationsInternational Economic Crisis(pressure on prices)Customers emancipatingthemselves from Apple & beingdistracted by Apple’s power game(e.g. cable plug issue)
3. Adobe´s business model• Software programmes16
174.WORLDWIDE SMARTPHONE OPERATING SYSTEM SHARE