A John Davis Company
A John Davis Company
Brands of the decade
I have been thinking about the brands that have had the greatest sustained impact on our lives the past 10 years. Two stand out: Apple and Google. Apple was resuscitated by Steve Jobs in the late 1990s and then went on a decade-long run to the top of the technology world with innovative products that we all know. At the start of the decade, Napster was giving away music for free, raising questions about artists’ rights and how long the music industry would survive. Apple’s iPod product line and accompanying iTunes download service showed that artist rights could be protected and the industry could continue to make money at the same time, while also satisfying growing demand for easily accessible music online--Apple’s market share in this sector is 87%. The company’s iMac, MacBook, and MacBook Pro computers witnessed their own resurgence as well, with market share quadrupling from roughly 2.5% share at the start of the decade to nearly 10% by the end of 2009. The company’s unique hardware/software combination captured the fancy of consumers, tapping into a desire for high quality design, product reliability, and lifestyle fit. The iPhone ushered in a new era of smart phone innovation and soared to 30% market share in the smart phone sector, behind only Blackberry’s 40%--a rapid rise in a very short time span. Although clearly not everyone loves Apple’s offerings, each of Apple’s products have become among the most talked about favorites among consumers, making the company one of the hottest viral marketers of the decade.
Google was founded in 1998, went public in 2004, and has grown to over $22 billion in revenue, a market cap of $196 billion, and a global market share of 67% (its U.S. market share is over 71%). It is hard to imagine not using Google several times a day. The company focuses on innovation in many areas beyond search, including free collaboration software, office software, maps, analytics, voice and, most recently, its Android mobile operating system. Android was a small start-up that Google purchased in 2005. In the past year, Google has launched its mobile phone service along with hardware partnerships for Android-compatible phones. Gartner forecasts Android to surpass iPhone by 2012 in market share (Gartner), which suggests that the pace of innovation in the smartphone sector will continue unabated for years to come.
Both Apple and Google are my brands of the decade because of their respective business dominance and also the direct impact they have had on our lives. Other brands that have risen to prominence to have an impact on our lives? Facebook, IKEA, Nokia, Blackberry, Nintendo (Wii). Twitter is too new and still appears too trendy (for now) to determine its long-term value (although its millions of devotees swear by it). But Apple and Google stand out.
Friday, January 1, 2010