Why
W
nu ith
Ap m up
pl ber da
Ke e’s s f ted
yn W rom
Apple
6 / ot W
6/ e D
20 on C
11
is the better
From a business model perspective
amazon

Since the introduction of the iPod and iTunes, Apple has
evolved into a Platform Operator and „Retailer“.
On the occasion of the iPad 2 introduction
it was interesting for me to compare
Apple‘s Business Model with Amazon.com.
You might find it too...

Amazon‘s Business Model
KEY
PARTNER KEY
ACTIVITIES VALUE
PROPOSITION CUSTOMER
RELATIONSHIP CUSTOMER
SEGMENTS
ONLINE
RETAIL
GLOBAL
SHOP CONSUM
ER
MARKET
KEY
RESOURCES CHANNELS
COST
STRUCTURE REVENUE
STREAMS
Inspired
by
BusinessModelGenera3on.com

Amazon‘s Business Model
KEY
PARTNER KEY
ACTIVITIES VALUE
PROPOSITION CUSTOMER
RELATIONSHIP CUSTOMER
SEGMENTS
ONLINE
RETAIL
GLOBAL
SHOP CONSUM
ER
MARKET
KEY
RESOURCES CHANNELS
THE
INTERN
ET
COST
STRUCTURE REVENUE
STREAMS
Inspired
by
BusinessModelGenera3on.com

Amazon‘s Business Model
KEY
PARTNER KEY
ACTIVITIES VALUE
PROPOSITION CUSTOMER
RELATIONSHIP CUSTOMER
SEGMENTS
ONLINE
RETAIL
GLOBAL
SHOP CONSUM
ER
MARKET
KEY
RESOURCES CHANNELS
THE
INTERN
ET
COST
STRUCTURE REVENUE
STREAMS
GIN
SALES
MAR
Inspired
by
BusinessModelGenera3on.com

Amazon‘s Business Model
KEY
PARTNER KEY
ACTIVITIES VALUE
PROPOSITION CUSTOMER
RELATIONSHIP CUSTOMER
SEGMENTS
ONLINE
RETAIL
GLOBAL
CUSTOMIZED
ONLINE
SHOP PROFILES
&
CONSUM
ER
RECOMMENDATIONS MARKET
KEY
RESOURCES CHANNELS
THE
INTERN
ET
COST
STRUCTURE REVENUE
STREAMS
GIN
SALES
MAR
Inspired
by
BusinessModelGenera3on.com

Amazon‘s Business Model
KEY
PARTNER KEY
ACTIVITIES VALUE
PROPOSITION CUSTOMER
RELATIONSHIP CUSTOMER
SEGMENTS
T GLOBAL
FULFILLMEN ONLINE
RETAIL
CUSTOMIZED
ONLINE
CONSUM
SHOP PROFILES
&
ER
RECOMMENDATIONS MARKET
IT
INFRASTR
UCT
&
SOFTW URE
A
DEVELOP RE
MENT
KEY
RESOURCES CHANNELS
THE
INTERN
ET
COST
STRUCTURE REVENUE
STREAMS
GIN
SALES
MAR
Inspired
by
BusinessModelGenera3on.com

Amazon‘s Business Model
KEY
PARTNER KEY
ACTIVITIES VALUE
PROPOSITION CUSTOMER
RELATIONSHIP CUSTOMER
SEGMENTS
T GLOBAL
FULFILLMEN ONLINE
RETAIL
CUSTOMIZED
ONLINE
CONSUM
SHOP PROFILES
&
ER
RECOMMENDATIONS MARKET
IT
INFRASTR
UCT
&
SOFTW URE
A
DEVELOP RE
MENT
KEY
RESOURCES CHANNELS
IT
INFRASTR
UCT
&
SOFTW URE
THE
ARE INTERN
ET
GLOBAL
FULFILLMENT
INFRASTRUCTURE
COST
STRUCTURE REVENUE
STREAMS
GIN
SALES
MAR
Inspired
by
BusinessModelGenera3on.com

Amazon‘s Business Model
KEY
PARTNER KEY
ACTIVITIES VALUE
PROPOSITION CUSTOMER
RELATIONSHIP CUSTOMER
SEGMENTS
T GLOBAL
FULFILLMEN ONLINE
RETAIL
CUSTOMIZED
ONLINE
LOGISTIC
SHOP PROFILES
&
CONSUM
ER
PARTNERS RECOMMENDATIONS MARKET
IT
INFRASTR
UCT
&
SOFTW URE
A
DEVELOP RE
MENT
AFFILIATES KEY
RESOURCES CHANNELS
IT
INFRASTR
UCT
&
SOFTW URE
THE
ARE INTERN
ET
GLOBAL
FULFILLMENT
INFRASTRUCTURE
COST
STRUCTURE REVENUE
STREAMS
GIN
SALES
MAR
Inspired
by
BusinessModelGenera3on.com

Amazon‘s Business Model
KEY
PARTNER KEY
ACTIVITIES VALUE
PROPOSITION CUSTOMER
RELATIONSHIP CUSTOMER
SEGMENTS
T GLOBAL
FULFILLMEN ONLINE
RETAIL
CUSTOMIZED
ONLINE
LOGISTIC
SHOP PROFILES
&
CONSUM
ER
PARTNERS RECOMMENDATIONS MARKET
IT
INFRASTR
UCT
&
SOFTW URE
A
DEVELOP RE
MENT
AFFILIATES KEY
RESOURCES CHANNELS
IT
INFRASTR
UCT
&
SOFTW URE
THE
ARE INTERN
ET
GLOBAL
FULFILLMENT
INFRASTRUCTURE
COST
STRUCTURE REVENUE
STREAMS
TECHNOL
OGY
&
MARKETING
CONTENT GIN
FULFILLM
SALES
MAR
ENT
Inspired
by
BusinessModelGenera3on.com

Great and successful model, so what is the problem?

Amazon‘s Business Model
KEY
PARTNER KEY
ACTIVITIES VALUE
PROPOSITION CUSTOMER
RELATIONSHIP CUSTOMER
SEGMENTS
T GLOBAL
FULFILLMEN ONLINE
RETAIL
CUSTOMIZED
ONLINE
LOGISTIC
SHOP
RelativelyS
&
PROFILE
low CONSUM
ER
PARTNERS value items.
RECOMMENDATIONS MARKET
IT
INFRASTR
UCT
&
SOFTW URE
A
DEVELOP RE
MENT
AFFILIATES KEY
RESOURCES CHANNELS
IT
INFRASTR
UCT
&
SOFTW URE
THE
ARE INTERN
ET
GLOBAL
FULFILLMENT
INFRASTRUCTURE
COST
STRUCTURE REVENUE
STREAMS
TECHNOL
OGY
&
MARKETING
CONTENT GIN
FULFILLM
SALES
MAR
ENT
Inspired
by
BusinessModelGenera3on.com

Amazon‘s Business Model
KEY
PARTNER KEY
ACTIVITIES VALUE
PROPOSITION CUSTOMER
RELATIONSHIP CUSTOMER
SEGMENTS
T GLOBAL
FULFILLMEN ONLINE
RETAIL
CUSTOMIZED
ONLINE
LOGISTIC
SHOP PROFILES
&
CONSUM
ER
PARTNERS RECOMMENDATIONS MARKET
IT
INFRASTR
UCT
&
SOFTW URE
A
DEVELOP RE
MENT
AFFILIATES KEY
RESOURCES CHANNELS
IT
INFRASTR
UCT
&
SOFTW URE
THE
ARE INTERN
ET
GLOBAL
FULFILLMENT
INFRASTRUCTURE
COST
STRUCTURE REVENUE
STREAMS
TECHNOL Low margins.
OGY
&
MARKETING
CONTENT GIN
FULFILLM
SALES
MAR
ENT
Inspired
by
BusinessModelGenera3on.com

Amazon‘s Business Model
KEY
PARTNER KEY
ACTIVITIES VALUE
PROPOSITION CUSTOMER
RELATIONSHIP CUSTOMER
SEGMENTS
T GLOBAL
FULFILLMEN ONLINE
RETAIL
CUSTOMIZED
ONLINE
LOGISTIC
SHOP PROFILES
&
CONSUM
ER
PARTNERS RECOMMENDATIONS MARKET
IT
INFRASTR
UCT
&
SOFTW URE
A
DEVELOP RE
MENT
AFFILIATES KEY
RESOURCES CHANNELS
IT
Very competitive
INFRASTR „platform“ is
UCT
&
SOFTW URE
limiting the THE
ARE sales margin. INTERN
ET
GLOBAL
FULFILLMENT
INFRASTRUCTURE
COST
STRUCTURE REVENUE
STREAMS
TECHNOL
OGY
&
MARKETING
CONTENT GIN
FULFILLM
SALES
MAR
ENT
Inspired
by
BusinessModelGenera3on.com

Amazon‘s Business Model
KEY
PARTNER KEY
ACTIVITIES VALUE
PROPOSITION CUSTOMER
RELATIONSHIP CUSTOMER
SEGMENTS
T GLOBAL
FULFILLMEN ONLINE
RETAIL
CUSTOMIZED
ONLINE
LOGISTIC
SHOP PROFILES
&
CONSUM
ER
PARTNERS RECOMMENDATIONS MARKET
IT
INFRASTR
UCT
&
SOFTW URE
A
DEVELOP RE
MENT Delivering mainly
physical goods is
AFFILIATES KEY
RESOURCES
very expensive CHANNELS
and shrinking the
margin even
IT
further.
INFRASTR
UCT
&
SOFTW URE
THE
ARE INTERN
ET
GLOBAL
FULFILLMENT
INFRASTRUCTURE
COST
STRUCTURE REVENUE
STREAMS
TECHNOL
OGY
&
MARKETING
CONTENT GIN
FULFILLM
SALES
MAR
ENT
Inspired
by
BusinessModelGenera3on.com

Amazon‘s Business Model
KEY
PARTNER KEY
ACTIVITIES VALUE
PROPOSITION CUSTOMER
RELATIONSHIP CUSTOMER
SEGMENTS
Dependent NT GLOBAL
FULFILLME on ONLINE
RETAIL
CUSTOMIZED
ONLINE
LOGISTIC
third parties for SHOP PROFILES
&
CONSUM
ER
PARTNERS best possible RECOMMENDATIONS MARKET
customerIT
INFRASTR
experience RE
UCT
&
SOFTW U
(on-time AR
Ddelivery).E
EVELOPM
ENT
AFFILIATES KEY
RESOURCES CHANNELS
IT
INFRASTR
UCT
&
SOFTW URE
THE
ARE INTERN
ET
GLOBAL
FULFILLMENT
INFRASTRUCTURE
COST
STRUCTURE REVENUE
STREAMS
TECHNOL
OGY
&
MARKETING
CONTENT GIN
FULFILLM
SALES
MAR
ENT
Inspired
by
BusinessModelGenera3on.com

Amazon‘s Business Model
KEY
PARTNER KEY
ACTIVITIES VALUE
PROPOSITION CUSTOMER
RELATIONSHIP CUSTOMER
SEGMENTS
T GLOBAL
FULFILLMEN ONLINE
RETAIL
CUSTOMIZED
ONLINE
LOGISTIC
SHOP PROFILES
&
CONSUM
ER
PARTNERS RECOMMENDATIONS MARKET
IT
INFRASTR
UCT
&
SOFTW URE
A
DEVELOP RE
MENT
AFFILIATES KEY
RESOURCES CHANNELS
IT
INFRASTR
UCT
&
SOFTW URE
THE
ARE INTERN
ET
GLOBAL
FULFILLMENT
INFRASTRUCTURE
COST
STRUCTURE REVENUE
STREAMS
TECHNOL
OGY
&
MARKETING
CONTENT GIN
FULFILLM
SALES
MAR
ENT
Inspired
by
BusinessModelGenera3on.com

So how does Apple do better?

Apple‘s Business Model
KEY
PARTNER KEY
ACTIVITIES VALUE
PROPOSITION CUSTOMER
RELATIONSHIP CUSTOMER
SEGMENTS
On Apple‘s iTunes
T GLOBAL
FULFILLMEN ONLINE
RETAIL
Plattform ONLINE
CUSTOMIZED
you
LOGISTIC
SHOP can PROFILES
&
seamlessly CONSUM
ER
PARTNERS discover ENDATIONS
RECOMM and buy MARKET
IT
Music, Movies,
INFRASTR Apps, Books,
UCT
&
SOFTW URE
Podcast, and
A
DEVELOP RE
alike...
MENT
AFFILIATES KEY
RESOURCES CHANNELS
IT
INFRASTR
UCT
&
SOFTW URE
THE
ARE INTERN
ET
GLOBAL
FULFILLMENT
INFRASTRUCTURE
COST
STRUCTURE REVENUE
STREAMS
TECHNOL
OGY
&
MARKETING
CONTENT GIN
FULFILLM
SALES
MAR
ENT
Inspired
by
BusinessModelGenera3on.com

Apple‘s Business Model
KEY
PARTNER KEY
ACTIVITIES VALUE
PROPOSITION CUSTOMER
RELATIONSHIP CUSTOMER
SEGMENTS
On Apple‘s iTunes
T ONLINE
RETAIL
GLOBAL
FULFILLMEN
Plattform ONLINE
CUSTOMIZED
you
LOGISTIC
SHOP
FOR
can PROFILES
&
seamlessly CONSUM
ER
PARTNERS DIGITAL
GOODS discover ENDATIONS
RECOMM and buy MARKET
IT
Music, Movies,
INFRASTR Apps, Books,
UCT
&
SOFTW URE
Podcast, and
A
DEVELOP RE
alike...
MENT
AFFILIATES KEY
RESOURCES CHANNELS
IT
INFRASTR
UCT
&
SOFTW URE
THE
ARE INTERN
ET
GLOBAL
FULFILLMENT
INFRASTRUCTURE
COST
STRUCTURE REVENUE
STREAMS
TECHNOL
OGY
&
MARKETING
CONTENT GIN
FULFILLM
SALES
MAR
ENT
Inspired
by
BusinessModelGenera3on.com

Apple‘s Business Model
KEY
PARTNER KEY
ACTIVITIES VALUE
PROPOSITION CUSTOMER
RELATIONSHIP CUSTOMER
SEGMENTS
T ONLINE
RETAIL
GLOBAL
FULFILLMEN CUSTOMIZED
ONLINE
LOGISTIC
SHOP
FOR
PROFILES
&
CONSUM
ER
PARTNERS DIGITAL
GOODS RECOMMENDATIONS MARKET
IT
INFRASTR
UCT
&
SOFTW URE
A
DEVELOP RE
Costs for
MENT
delivering digital
goods is marginal
AFFILIATES KEY
RESOURCES with the Internet CHANNELS
as the
IT
distribution
INFRASTR channel.
UCT
&
SOFTW URE
THE
ARE INTERN
ET
GLOBAL
FULFILLMENT
INFRASTRUCTURE
COST
STRUCTURE REVENUE
STREAMS
TECHNOL
OGY
&
MARKETING
CONTENT GIN
FULFILLM
SALES
MAR
ENT
Inspired
by
BusinessModelGenera3on.com

Apple‘s Business Model
KEY
PARTNER KEY
ACTIVITIES VALUE
PROPOSITION CUSTOMER
RELATIONSHIP CUSTOMER
SEGMENTS
iDevices
ONLINE
RETAIL
GLOBAL
ENT CUSTOMIZED
ONLINE
LOGISTIC
DEVELOPM SHOP
FOR
PROFILES
&
CONSUM
ER
PARTNERS DIGITAL
GOODS RECOMMENDATIONS MARKET
IT
INFRASTR
UCT
&
SOFTW URE
A
DEVELOP RE
Instead, Apple
MENT
can focus on
developing it‘s
AFFILIATES KEY
RESOURCES own iDevices to CHANNELS
create their own
IT
platform
INFRASTR (market place).
UCT
&
SOFTW URE
THE
ARE INTERN
ET
GLOBAL
„iTunes
&
„iDevices“
PLATFORM
COST
STRUCTURE REVENUE
STREAMS
TECHNOL
OG GIN
MARKETING DEVELOPM Y
SALES
MAR
ENT
Inspired
by
BusinessModelGenera3on.com

Apple‘s Business Model
KEY
PARTNER KEY
ACTIVITIES VALUE
PROPOSITION CUSTOMER
RELATIONSHIP CUSTOMER
SEGMENTS
iDevices
ONLINE
RETAIL
GLOBAL
ENT CUSTOMIZED
ONLINE
LOGISTIC
DEVELOPM SHOP
FOR
PROFILES
&
CONSUM
ER
PARTNERS DIGITAL
GOODS RECOMMENDATIONS MARKET
IT
INFRASTR
UCT
&
SOFTW URE
Using iTunes as „LOCKED
A
DEVELOP RE
your growing
IN“
MENT media database
and buying more
AFFILIATES KEY
RESOURCES and more Apps CHANNELS
for the iDevices
IT
is making it hard
INFRASTR to change the
UCT
&
SOFTW URE
plattform. THE
ARE INTERN
ET
GLOBAL
„iTunes
&
„iDevices“
PLATFORM
COST
STRUCTURE REVENUE
STREAMS
TECHNOL
OG GIN
MARKETING DEVELOPM Y
SALES
MAR
ENT
Inspired
by
BusinessModelGenera3on.com

Apple‘s Business Model
KEY
PARTNER KEY
ACTIVITIES VALUE
PROPOSITION CUSTOMER
RELATIONSHIP CUSTOMER
SEGMENTS
iDevices
ONLINE
RETAIL
GLOBAL
E T CUSTOMIZED
ONLINE
LOGISTIC
VELOP is N
DEApple M SHOP
FOR
PROFILES
&
CONSUM
ER
PARTNERS controlling the DIGITAL
GOODS RECOMMENDATIONS MARKET
whole Ivalue
T
INFRA R
chainSTto Cit‘s
U T
customersURE
&
SOFTW
A „LOCKED
ensuringOPMERE
DEVEL the best
IN“
NT
possible customer
experience
AFFILIATES KEY
RESOURCES CHANNELS
IT
INFRASTR
UCT
&
SOFTW URE
THE
ARE INTERN
ET
GLOBAL
„iTunes
&
„iDevices“
PLATFORM
COST
STRUCTURE REVENUE
STREAMS
TECHNOL
OG GIN
MARKETING DEVELOPM Y
SALES
MAR
ENT
Inspired
by
BusinessModelGenera3on.com

Apple‘s Business Model
KEY
PARTNER KEY
ACTIVITIES VALUE
PROPOSITION CUSTOMER
RELATIONSHIP CUSTOMER
SEGMENTS
iDevices
ONLINE
RETAIL
GLOBAL
GY
ENT SHOP
FOR
CUSTOMIZED
ONLINE
TECHNOLO DEVELOPM PROFILES
&
CONSUM
ER
SUPPLIERS DIGITAL
GOODS RECOMMENDATIONS MARKET
IT
INFRASTR
UCT
&
SOFTW URE
„LOCKED
A
DEVELOP RE
IN“
MENT
AFFILIATES KEY
RESOURCES CHANNELS
IT
INFRASTR
UCT
&
SOFTW URE
THE
ARE INTERN
ET
GLOBAL
„iTunes
&
„iDevices“
PLATFORM
COST
STRUCTURE REVENUE
STREAMS
TECHNOL
OG GIN
MARKETING DEVELOPM Y
SALES
MAR
ENT
Inspired
by
BusinessModelGenera3on.com

Apple‘s Business Model
KEY
PARTNER KEY
ACTIVITIES VALUE
PROPOSITION CUSTOMER
RELATIONSHIP CUSTOMER
SEGMENTS
iDevices
ONLINE
RETAIL
GLOBAL
GY
ENT SHOP
FOR
CUSTOMIZED
ONLINE
TECHNOLO DEVELOPM PROFILES
&
CONSUM
ER
SUPPLIERS DIGITAL
GOODS RECOMMENDATIONS MARKET
IT
INFRASTR
UCT
&
SOFTW URE
„LOCKED
A
DEVELOP RE
IN“
MENT
AFFILIATES KEY
RESOURCES CHANNELS
As at Apple they
IT
have created
INFRASTR their own
UCT
&
SOFTW URE
platform, they THE
ARE control the INTERN
ET
market place.
GLOBAL
„iTunes
&
„iDevices“
PLATFORM
COST
STRUCTURE REVENUE
STREAMS
TECHNOL
OG GIN
MARKETING DEVELOPM Y
SALES
MAR
ENT
Inspired
by
BusinessModelGenera3on.com

Apple‘s Business Model
KEY
PARTNER KEY
ACTIVITIES VALUE
PROPOSITION CUSTOMER
RELATIONSHIP CUSTOMER
SEGMENTS
iDevices
ONLINE
RETAIL
GLOBAL
GY
ENT SHOP
FOR
CUSTOMIZED
ONLINE
TECHNOLO DEVELOPM PROFILES
&
CONSUM
ER
SUPPLIERS DIGITAL
GOODS RECOMMENDATIONS MARKET
IT
INFRASTR
UCT
&
SOFTW URE
„LOCKED
A
DEVELOP RE
IN“
MENT
AFFILIATES KEY
RESOURCES CHANNELS
IT
INFRASTR iTunes
UCT
&
SOFTW URE
iDevice +
ARE s
(iPod,
iPhone
&
iPad
GLOBAL
)
„iTunes
&
„iDevices“
PLATFORM
COST
STRUCTURE REVENUE
STREAMS
TECHNOL
OG GIN
MARKETING DEVELOPM Y
SALES
MAR
ENT
Inspired
by
BusinessModelGenera3on.com

Apple‘s Business Model
KEY
PARTNER KEY
ACTIVITIES VALUE
PROPOSITION CUSTOMER
RELATIONSHIP CUSTOMER
SEGMENTS
iDevices
ONLINE
RETAIL
GLOBAL
GY
ENT SHOP
FOR
CUSTOMIZED
ONLINE
TECHNOLO DEVELOPM PROFILES
&
CONSUM
ER
SUPPLIERS DIGITAL
GOODS RECOMMENDATIONS MARKET
IT
INFRASTR
UCT
&
SOFTW URE
„LOCKED
A
DEVELOP RE
IN“
MENT
AFFILIATES KEY
RESOURCES CHANNELS
IT
INFRASTR iTunes
UCT
&
SOFTW URE
iDevice +
ARE s
(iPod,
iPhone
&
iPad
GLOBAL
)
„iTunes
&
„iDevices“
PLATFORM
COST
STRUCTURE REVENUE
STREAMS
Controlling the
market place let
TECHNOL you control the
OG GIN
MARKETING DEVELOPM Y
margins... SALES
MAR
ENT
Inspired
by
BusinessModelGenera3on.com

Apple‘s Business Model
KEY
PARTNER KEY
ACTIVITIES VALUE
PROPOSITION CUSTOMER
RELATIONSHIP CUSTOMER
SEGMENTS
iDevices
ONLINE
RETAIL
GLOBAL
GY
ENT SHOP
FOR
CUSTOMIZED
ONLINE
TECHNOLO DEVELOPM PROFILES
&
CONSUM
ER
SUPPLIERS DIGITAL
GOODS RECOMMENDATIONS MARKET
IT
INFRASTR
UCT
&
SOFTW URE
„LOCKED
A
DEVELOP RE
IN“
MENT
AFFILIATES KEY
RESOURCES CHANNELS
IT
INFRASTR iTunes
UCT
&
SOFTW URE
iDevice +
ARE s
(iPod,
iPhone
&
iPad
GLOBAL
)
„iTunes
&
„iDevices“
PLATFORM
COST
STRUCTURE REVENUE
STREAMS
TECHNOL 30%
OG GIN
MARKETING DEVELOPM Y
SALES
MAR
ENT TENT
FROM
CON
Inspired
by
BusinessModelGenera3on.com

Apple‘s Business Model
KEY
PARTNER KEY
ACTIVITIES VALUE
PROPOSITION CUSTOMER
RELATIONSHIP CUSTOMER
SEGMENTS
iDevices
ONLINE
RETAIL
GLOBAL
GY
ENT SHOP
FOR
CUSTOMIZED
ONLINE
TECHNOLO DEVELOPM PROFILES
&
CONSUM
ER
SUPPLIERS DIGITAL
GOODS RECOMMENDATIONS MARKET
IT
INFRASTR
UCT
&
SOFTW URE
„LOCKED
A
DEVELOP RE
IN“
MENT
AFFILIATES KEY
RESOURCES CHANNELS
IT
INFRASTR iTunes
UCT
&
SOFTW URE
iDevice +
ARE s
(iPod,
iPhone
&
iPad
GLOBAL
)
„iTunes
&
„iDevices“
PLATFORM
COST
STRUCTURE PLUS Apple makes REVENUE
STREAMS
also money
TECHNOL selling the 30%
OG HARDWA
MARKETING DEVELOPM Y
„Platform“ GIN
RE
(iDevices). SALES
MAR SALES
ENT TENT
FROM
CON
Inspired
by
BusinessModelGenera3on.com

Apple‘s Business Model
KEY
PARTNER KEY
ACTIVITIES VALUE
PROPOSITION CUSTOMER
RELATIONSHIP CUSTOMER
SEGMENTS
iDevices
ONLINE
RETAIL
GLOBAL
GY
ENT SHOP
FOR
CUSTOMIZED
ONLINE
TECHNOLO DEVELOPM PROFILES
&
CONSUM
ER
SUPPLIERS DIGITAL
GOODS RECOMMENDATIONS MARKET
IT
INFRASTR
UCT
&
SOFTW URE
„LOCKED
A
DEVELOP RE
IN“
MENT
AFFILIATES KEY
RESOURCES CHANNELS
IT
INFRASTR iTunes
UCT
&
SOFTW URE
iDevice +
ARE s
(iPod,
iPhone
&
iPad
GLOBAL
)
„iTunes
&
„iDevices“
PLATFORM
COST
STRUCTURE REVENUE
STREAMS
TECHNOL 30% HARDWA
OG GIN
RE
MARKETING DEVELOPM Y
SALES
MAR SALES
ENT TENT
FROM
CON
Inspired
by
BusinessModelGenera3on.com

To run a successful platform you need to create and maintain a
network effect. The network effect ensures the „lock in“ of
your customers, by this adds value, and keeps your
competition at distance.

Not focussing on technology but user experience seems to be
Apple‘s key to success.

They have created three blockbuster devices
in a row since 2001.

275 M 100 M 25 M
(Sep. 2010) (Mar. 2011) 200 M IOS-Devices
Source: Apple’s WWDC Keynote on 6/6/2011

By this they‘ve „locked in“
225 Million iTunes Customers
(with their credit cards and I-click purchasing).
Source: Apple’s WWDC Keynote on 6/6/2011

These clients downloaded more than
15 billion songs
(making Apple the #1 music retailer in the world!)
14 billion apps
130 million books
450 million TV episodes
100 million movies.
(Last two numbers from Sep. 2010 Keynote and already outdated!)
Source: Apple’s WWDC Keynote on 6/6/2011

Up to now Software developers have earned over
$2.5 billion from selling their apps on the App Store.
Source: Apple’s WWDC Keynote on 6/6/2011

So, pretty good reasons for content providers and software
developers to produce and distribute content through this
distribution channel.

These are the reasons why I came to the conclusion
that Apple is the better Amazon.com.

Although I am a fan of both.
:-)

You've made it this far.
Thanks for your attention and sharing!
Thorsten Faltings
Business Innovation & Development Consultant
Happy to help you through today's Business Revolution
Any Questions?
Twitter: @faltings
Email: faltings@ymail.com Featured as „Top
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