Apple and Tesla: Strategy and Love

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William LaraqueMr. William Laraque is an advisor to governments, financial institutions and enterprise for economic development and job creation Top Contributor

Apple doesn’t need to buy Tesla. Apple’s credo is to bring design excellence to digital products that consumers use everyday. Like cars! The car is a digital product until such time as teleportation becomes practical. It not only gets you where you are going, but helps determine where that is and now tells you how to get there. You can tell your loved ones where you are using the car’s communication functionality while listening to beautiful music, or the music you like whether or not it can be characterized as beautiful. Apple improves the quality of life. So will the Apple car.

Consumers love the beautiful and the well designed, the well functioning. This is the point. Consumers love Apple products and as Tim Cook has said, love determines relevance.

Apple doesn’t need to buy Tesla. It is true that Tesla has solved one of the great problems with EVs. Most EVs look awful! Cars are works of art as well as works of function. They are “scenery” as Jony Ive, Apple’s chief designer describes them. EVs for the most part have not been sold in volumes that exceed the 36,000 numbers sold annually except for one; the Nissan Leaf which sells at 2x the annual volume of the nearest competitor. Nissan/Renault have worked the international markets with a product that people can like. Apple whose products depend on a reliable power source, has surely developed a power plant that encompasses the disruptive innovations which anyone awake is aware of. The fact that ingrained special interests are fighting tooth and nail, on every front, to maintain a world which is no longer relevant does not restrict the human imagination. Imagination + capital = disruptive change. Apple has both!

The opportunity that Apple’s leadership invisions is to design a stylish, energy efficient EV and to sell it to China, India and other global markets. It’s not about climate change. People can’t breathe in Major Chinese and Indian cities. They have a design problem. There are many U.S. companies that consider that their management thinks out of the box. Not when the box is the U.S! U.S. companies export to an average of 2 countries. German companies export to an average of 6. Apple’s breakthrough is the realization that design excellence is something that everybody, everywhere loves. Beauty may be cultural but the combination of the visually attractive and excellence in function are globally attractive.

No, Apple doesn’t need to buy Tesla. Apple is Tesla – on steroids-global steroids.

The original article was posted under the Linkedin Strategic Management Forum (Global), go to
http://linkd.in/1DrvUbN

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