On September 11, 2013, Apple released iPhone 5s and iPhone 5c in California. The release of iPhone 5c actually carves a low-priced product line, which will seriously affect Apples’ existing market share. With the leadership of Steve Jobs before, Apple was concentrating on differentiate their products by three key elements: design, access to content via iTunes and brand prestige. They provided deliberate design electronic devices with high technology, which targeted the high-end market. When these devices were used by icons in various field, public would start to follow the trend. That was how it boosted Apple’s market share.

However, the new low-priced iPhone 5c seems a shift of Apple’s marketing strategy, which is all about market segmentation. According to Porter’s Generic Strategies, Apple is trying to switch from differentiation strategy to cost leadership strategy. The release of iPhone 5c is the product with a relatively lower price, which targets the low-end market. Nonetheless, the strategy shift is risky. It is not only a shift in marketing strategy, but also a shift in Apple’s culture. It may even lead to a decline in its market share, because consumers will not purchase products from a company that is no longer a marvel in the industry. For the same reason, we should also expect that many employees to leave.

You can’t have your cake and eat it too. Every company should focus on its own target market, rather than disperse to the whole market. Otherwise, the loss may outweigh the gain.

http://www.bbc.com/capital/story/20130904-the-end-of-apple-as-we-know-it

Micromanagement is defined as a management style whereby a manager closely observes or controls the work of subordinates. It generally has a negative connotation. Many leadership experts consider it as the No.1 of the public enemy. People usually equate leadership with delegation, which is precisely the opposite of micromanagement. However, many successful entrepreneurs, such as Steve Jobs, Mickey Drexler and Jeff Bezos, are unmitigated, unapologetic, micromanagers.

They are all ambidextrous leaders who are capable to strike a balance between micromanagement and delegation. Micromanagers are required to be experts. Otherwise, their comments may be not credible. However, to be an expert needs time and dedication, but people’s time and energy are limited. That’s why micromanagers must be selective. For instance, Jeff Immelt, CEO of the blue-chip industrial conglomerate General Electric, only intimately know the top 500 executives in the company, because these top 500 people represent the potential of the company.

Last but not least, having a capable team is a precondition for being a successful micromanager. Because of people’s limitation of time and energy, we cannot mind the overall situation and the details simultaneously. So every micromanager needs a strong, trusted backup to assist him in the work.

Although micromanagement seems contradictory to a leader, it actually enables more, but less, delegation.

http://www.bbc.com/capital/story/20131003-in-praise-of-micromanagement

Mass customization is a business model defined by Tseng & Jiao as “producing goods and services to meet individual customer’s needs with near mass production efficiency.” However, this is an ideal definition. No large corporations so far have been made substantial profits by using the mass customization model except for NIKE iD.

NIKE iD is a customizing service launched initially in 1999 by one of the largest sportswear company NIKE. It allows customers to design their own clothes or shoes online, and the customized items will be shipped directly to the customer’s, which is also a direct sale. NIKE iD expands customers purchased from limited choices by providing a limited range of material and colors to develop their unlimited own style items.

Data shows that NIKE’s online community has reached 15 million people, and their market share has increased from 48% to 61% during the same period. In addition, NIKE iD is now 20% of store total revenue, which illustrates that mass customization has become the driver of their revenue.

Forrester’s J.P Gownder concluded that “mass customization is finally the future of products.” As the rapid development of economy, the market of customization is tending to grow. Consumers have a tendency to substitute their purchase from manufactured goods to customized goods.

http://www.crossroadinnovation.com/nike-id