In the year 2003, there was a tiny gadget that easily fit into the palm of your hand that heralded of one of the greatest technological revolutions ever. Yes, long before the I Pad and MacBook Air, there was the I Pod. What this tiny device did, really, was revolutionize the entertainment industry, making it ‘portable’, something that had never been done before. We all grew up in a time when the only music we ever listened to was in the form of audiocassettes or compact discs bought from the local store. Apple took it one step further. They allowed us to buy ‘single’ songs at a most affordable price, and that too while we were on the go! No need to have to make the time to visit your local store or anything like that. Just click on the download button from wherever you are, be it at home or on the way to work, and voila! You have the song you always wanted. That too, without having to purchase the unwanted remainder of the album as well!
In just three years the combination of I Pod and I Tunes became around a ten billion dollar product, accounting for a whopping fifty percent of the entire revenue of the company! And the best part is, it all started with a business model.
One must bear in mind here, that it was not Apple that was the first to bring digital music players onto the scene. There were other popular products like Rio and Cabo but neither of these, successful as they were, could create the sort of impact that the I Pod did on the music scene. Why is that? That’s because Apple took a great ‘idea’ and bolstered it with a great business model! It really made downloading music far easier and convenient than the other products in the market through a good combination of hardware, software and service. What they did in essence was literally ‘give away’ their music on iTunes for a throwaway price, which in turn lured customers to buy their I Pod. And no matter how expensive that I Pod might have been, it really was worth every single cent to the customer because of the added value of the very affordable music that came along with it! Apple succeeded where others didn’t simply because they had a far superior ‘business model’. If you are an entrepreneur looking to launch a new product or offer a new service to the market out there, you might wish to invest a little bit more time in that business model of yours. In the end hat, really, is what is going to make all the difference, determining whether your product is going to be successful or not!