Friday, December 28, 2012

Memo to Tim Cook: It's time to innovate

As you noticed that Apple stock is plummeting faster than a NASA satellite crashing into the pacific ocean.  Why is that?  As a digital consumer, I would say that Apple has not released any new product.  When I mean "new", I don't mean a rehashing of its existing products like mini-iPad or new iPhone 5.  Apple was great in releasing technology which revolutionized how we consumed digital content. What Apple needs is a new Steve Jobs.  A true visionary with savvy business skills.  Tim Cook is not a visionary but rather a good COO with the title CEO.

The big question to ask is what is the next big thing to invest in.  I would say, Yahoo! looks promising but Marissa Mayer, Yahoo! CEO, seems to be taking patterns that she learned at Google and implementing them in Yahoo!  I don't see innovation.  I am loyal to the Yahoo! brand since it led me through the evolution of the internet.  It, however, has not evolved as a company. Yahoo! reminds me of Oracle in the digital content world.  Like Oracle, Yahoo bought smaller companies however Yahoo doesn't know how to integrate them to provide new and refreshing products.

My money is on Bob Iger, CEO of Walt Disney Company.  He understands his management style and the Disney brand and made some brilliant moves. His moves include:
  • Acquisition of Pixar - Acquired a popular product and infused into the Disney brand.  He understood that the new generations don't easily gravitate to Disney characters like Mickey Mouse, Donald Duck, but to Toy Story characters.  It was a win/win product.
  • Acquisition of Marvel Entertainment - Acquired products  that appealed to a certain product and infused into the Disney brand
  • Acquisition of Lucas Films - Acquired Star Wars and Indiana Jones and put them in the Disney family
Do you see the pattern?  Bob buys these products on behalf of Disney and uses the Disney brand to make more movies, action figures, theme parks, and sells contracts to McDonald's to sell more Happy Meal toys.

Pure brilliance. Tim Cook is muddling along.  He needs to define what Apple should do.  If he doesn't do it then Apple stocks will continue to plummet. 

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