Apple Report
Corporate Strategy
Apple Report
Team C
Margy Rizkalla
Ibrahim Tawakol
Pauline Kitur
Soukeyna Gaye
Kareem Abouelnaga
Ehidiamhen Alikah
First, we have to analyze the situation at which Steve Jobs has taken the decision of disabling
Adobe from operating Flash on ipods touch, ipad, and iphones. Flash has been used in 95% of desktops even Mac itself. At one point in time, Apple owned a 20% stake in Adobe and had been working closely together for years. Apple had its doubts about Adobe’s reliability, security and performance of Adobe. They have reported these issues to Adobe without subjective outcome.
Also, Apple had already been a well-established brand in the smartphone business and identified it competitive advantages that need to leverage on: user experience, app store. Apple has already built a strong relation with the app developers.
Given the above, porters forces, and Steve Jobs experience and intuition, he had several reasons to take such a decision. We believe two of which are the most important: by enabling Flash on his products, Steve Jobs would not only create a monopolist supplier, but rather a layer in the relationship between the app developers and Apple. In that case, all websites and videos have to be written using Flash. Apple would be under the mercy of Flash. They would never be eager to develop or solve their performance issues. Moreover, Jobs can clearly see that "Adobe's goal is to encourage developers to write Flash apps that run on the iPhone (and elsewhere) instead of writing iPhone-specific apps." In effect the distinct apple experience is under threat of being commoditized through a “Flash for all” app development platform. It is therefore a matter of existence. So apple was keen to maintain its “monopoly” situation in the market and extend its competitive advantage as long as possible by maintaining its unique user experience.
We have to admit that this has been a risky one since 60% of videos played on websites have to be run using
Apple Report
Team C
Margy Rizkalla
Ibrahim Tawakol
Pauline Kitur
Soukeyna Gaye
Kareem Abouelnaga
Ehidiamhen Alikah
First, we have to analyze the situation at which Steve Jobs has taken the decision of disabling
Adobe from operating Flash on ipods touch, ipad, and iphones. Flash has been used in 95% of desktops even Mac itself. At one point in time, Apple owned a 20% stake in Adobe and had been working closely together for years. Apple had its doubts about Adobe’s reliability, security and performance of Adobe. They have reported these issues to Adobe without subjective outcome.
Also, Apple had already been a well-established brand in the smartphone business and identified it competitive advantages that need to leverage on: user experience, app store. Apple has already built a strong relation with the app developers.
Given the above, porters forces, and Steve Jobs experience and intuition, he had several reasons to take such a decision. We believe two of which are the most important: by enabling Flash on his products, Steve Jobs would not only create a monopolist supplier, but rather a layer in the relationship between the app developers and Apple. In that case, all websites and videos have to be written using Flash. Apple would be under the mercy of Flash. They would never be eager to develop or solve their performance issues. Moreover, Jobs can clearly see that "Adobe's goal is to encourage developers to write Flash apps that run on the iPhone (and elsewhere) instead of writing iPhone-specific apps." In effect the distinct apple experience is under threat of being commoditized through a “Flash for all” app development platform. It is therefore a matter of existence. So apple was keen to maintain its “monopoly” situation in the market and extend its competitive advantage as long as possible by maintaining its unique user experience.
We have to admit that this has been a risky one since 60% of videos played on websites have to be run using