In reviewing Apple Inc. over the last few months a whole series of accusations tend to address that the I-Phone has run out of gas and that Computer Watch is not achieving targeted objectives. Yet the movement towards on-line streaming information, has the Netflix type competitors getting a big surprise. However, the proper implementation of a new product strategy by Apple Inc. has the traditional bankers shaking in their boots. Why? Apple introduced its new, no- fee, MasterCard – branded Apple Card. This has to be a bold and innovative move by Apple, and represents one of the shrewdest moves that the marketing department has made yet for the following reasons:

First, the Card represents a vehicle that is Apple friendly and eliminates the Evil, Rude, Non-Customer focused wrath, that is being experienced every minute of every day. Most Banks have given up on Customer Service – just ask me – as I
experienced the lack of Customer Service at Fifth Third Bank who had made the change of all MB Banks over the weekend. The Fifth Third Bank had acquired MB Bank recently. I was just seeking directions as to what I needed to do, only to be told that I had to understand that they couldn’t help me. I walked out and headed for the Chase Bank.

Second, the Apple Card changes the concern for privacy from an afterthought to one that protects Consumers.

Third, it recognizes the fact that great exposure to the MasterCard-Brand will take place.

Fourth, and most importantly, it effectively makes Apple “sticky,” like the “software used on Microsoft PC’s (Windows). PC users were reluctant to switch to the far superior, but more expensive Apple operating system.

Steve Jobs wherever you are, you can be proud of the fact that you stood by-your-guns and made Microsoft Windows run on the Apple then. Today, you can take great pride in the fact that Apple marketing has made me cancel a credit card in order to buy a new phone. This represents a stroke of genius. The new card will make me more likely to buy an I-Phone because I will be exposed to a variety of sticky marketing programs featuring the I-Phone, plus saving the annual fee that might be associated with my existing Card.

The situation is much like Microsoft Corp. requiring PC makers for years to buy a copy of Windows for every unit produced, even if the buyers didn’t want one. The users were reluctant to abandon the company’s software.

But Microsoft’s reluctance was even greater, as today’s legacy revenues play an important role in the company’s ongoing dominance with Windows. I would love to switch away from Windows, but our company is so heavily
Invested in it that we simply “can’t.”

The Card has nothing to do with Services, but Apple is making a similar bet as Microsoft. It’s really a move to solidify the hold has on Consumers and to squeeze every last dollar of revenue possible out of the 1.3 billion devices already out there.

Apple is simply making it appealing and is doing what Steve Jobs always did: Taking an every-day object the – Credit Card – and making it work for Apple without the Consumer realizing the intent. In this case, the avenue for Apple is ready under the guise !!

How “sticky” are your present, past and future products? Can you identify competitive advantages on which you could maximize profits? You might be pleasantly surprised!