Amazon Ecosystem or Apple Ecosystem?
Amazon, Apple ecosystem is a technical term used to show how the two companies are manipulating the market to have consumers make purchases of products that work simultaneously. By this, amazon, apple ecosystem can control what the next purchase of their customers will be since they can predict the next customer requirements.
The game of technological innovation keeps on changing. Giving a great product to customers is no longer a requirement for the company’s success. The priority is delivering excellent solutions to your consumers. Initially, product success depended on the ability to exploit branding, distribution, and production to deliver the best product. Contrary to today’s strategy, amazon, apple ecosystem is the focus in taking over relationships with both consumers and partners, therefore providing the best experience. This article is, therefore, going to look into detail how the two companies: amazon, apple ecosystem contrast from each other, and their similarities in their respective ecosystem.
Check out: The Apple Eco-System: What Is It?
Amazon is contrasting itself from Apple in terms of both its customer mark and its model of profit. While Apple accrues most of its revenue, the moment an iPad is purchased, while its partners capture value over time as users consume services. In contrast, Amazon’s revenues are realized over the lifetime of the customer with every time they are using Amazon products. In this regard, Amazon’s incentives seem more aligned with those of its media partners (“we win together overtime”) than Apple’s with its partners (“I win first; you later…maybe”).
Leveraging existing relationships
By the time apple expanded its market niche from music players to smartphones, it had carried with it not only the software and technology that powered its music players but also the entire collection of music. The strategy was never about creating a switching cost but instead leveraging existing relationships. This means that most of the apple competitors are still playing catch up in this critical connection that harmonizes the entire ecosystem together into a single product. Therefore, Apple was able to give their iPhone a running start by transferring data from its iPod ecosystem.
Amazon, on the other hand, with the introduction of Kindle Fire devices, is catching up with an ecosystem strategy. It has been able to pair substantial carryover i.e., the entire e-book with that of the current user e-book library. The company is giving up on its hardware revenues I to position its Kindle fire as a low priced tablet, to allow its customers to access books easily with the device.
In as far as offering services is concerned, amazon, apple ecosystem differs considerably. Amazon has always focused on the e-commerce aspect, apart from the devices it sells but also does apps, cloud computing with its amazon web service, and online financial transactions. Apple ecosystem, on the other hand, is majorly on its apple music services. Apple sells music tracks and apps on the iTunes stores. It also has other revenue outlets like the immersive technology in education.
Both companies have registered their success in business. Researchers say that both companies will continue to grow but at a different pace. However, there are concerns that Apple will not be able to push its products as it has done in the past where there was no stiff competition. With the continued emerging breakthrough of new products from competitors, its market will somehow stagnate. Amazon, on the other hand, being a young company with little presence around the world, will continue to boom before it acquires a global perspective.
Otherwise, both the companies have grown so massively and are now facing the government’s regulations in terms of additional taxation, but it’s unlikely that their revenues will be affected soon. Even though they both met with regulatory concerns, when it comes to head-on encounter, amazon will ultimately have the upper hand since it has various strings to its bow winning eventually.
As we have noted, an ecosystem can define as a biological community of interacting organisms in a particular niche. In technological terms, this means a group of devices with software to create one collaborative network to perform an almost similar function. Both Amazon, apple ecosystem vary on how each company has aligned its goals and objectives with the company’s strategy. It’s worth observing that even though the two companies are always at par with each other, there’s no time that they’ll ever be the same. Amazon has proven beyond a reasonable doubt that it a giant by strategically positioning itself through different products and, ultimately, the customer experience. I can, therefore, conclude that the amazon ecosystem is top-notch.