Google, Apple and Amazon's Strategies for Mastering Money are worthy of imitation
Apple, Google and Amazon they are the Titan. The rulers of the industry often make us unable to avoid them. We use the search engine, we use the gadget, we shop at the store. They unknowingly have become part of our lives. Will they stop? Of course not, They will continue to move deeper and deeper into every aspect of our lives, eventually being able to get into our wallets and drain all of their contents.
Some people see it as the devil's greedy behavior. Regardless of the debate "God or Devil" is very visible genius in their strategy and execution. The genius that makes many of today's big companies look so backwards especially when it comes to strategizing, driving growth and conquering markets. So obviously we have to learn from them, if we want to be safe, if we don't want our market to be eaten by them.
In this paper, we will start by discussing the industrial facility octopus from Apple, Google and Amazon. Then dive in to unravel their product strategy to go deeper into mastering the contents of our wallet. Hopefully it can move you to start surfing like the tech giants.
Tech Giant Octopus
Without a doubt, Apple is a hardware product giant iMac, MacBook, iPhone, iPad Apple watch and other Apple products are very popular today. Interestingly in recent years Apple has expanded its business portfolio by developing online services for its customers which include entertainment, news, music, health, cloud, payments and so on. As Apple's efforts to continue to drive business growth. Apple is transitioning from hardware to mobile software to being a lifestyle company based on mobile technology
Then talk about Google, we know that Google is a company that brings a search engine for the internet. We also know Google has YouTube, Gmail, Chrome, Android, Google Docs, slides and more than 250 other apps. But now, Google has grown to be more than just a software provider company. Google released a number of quite popular physical products such as the Pixel Phone and ChromeBook and recently Google has even entered into e-commerce by launching Google for Retail to boost revenue from Google shopping ads.
Meanwhile, Amazon is the largest online marketplace in the world today. However, Amazon doesn't stop there. Amazon released its own products such as kindle, Amazon Echo, Fire TV and many more. Amazon is also fond of acquiring other potential companies such as zappos.com and Retail Chain Whole Foods to enter the physical retail business. Amazon is also expanding its business with the emergence of a very successful Cloud service, namely Amazon Web Services and currently Amazon is increasing the quality and penetration of its streaming services by acquiring MGM, a legendary film studio that is the home of the James Bond franchise.
In the last 10 years the businesses of Apple, Google and Amazon have grown rapidly out of the industry from their original product categories. Interestingly, although the direction of their business movements is different. Now there is a pattern, they move and gather in one industry, namely the financial industry.
What is it that attracts big tech companies like them to enter the financial industry? There are at least four reasons:
1. The value of money that is spinning and ready to be played in the financial industry is very large, around USD 28 trillion. Any company would be drooling at the amount of money.
2. API technology makes it easy for anyone to embed banking services into their digital products. In just one move companies can get a new source of income from financial services in their products.
3. Tech giants have huge amounts of consumer user data that can be analyzed to make financial services more personalized. That lies the competitive advantage that gives them a great chance of success.
4. If we look at the bank side, the number of active users of these tech giants is very interesting. In just one partnership, the Bank suddenly has access to tens of millions of potential customers, including those who have not been touched by banking services. That's what makes them happy to work with the tech giants.
Conquering the Financial Industry
Now let's see How Apple, Google and Amazon are playing in the financial industry and starting to invade our wallets. Apple dives into financial services with the launch of the Apple card and thanks to its no-fee policy, instant cashback and flexible interest rates. Apple was able to amass 6.4 million customers in just one year since Apple Cars was launched at the end of 2019. Following this success, Apple launched the Apple family card as an effort to take advantage of the growing trend of youth and child banking.
The presence of the Apple card in the midst of Apple's extensive network of active devices and services will further lock customers into the Apple ecosystem and in an effort to further strengthen that strategy Apple is acquiring software technology that allows transactions between phones, and making iPhone a contact-free mobile payment terminal (contactless).
The race to become the financial super-f of choice has heated up in recent years and more and more financial technologies are combining banking, investing, retirement planning and other financial services in one app. Google intends to win this race, partnering with 11 Banks. Google launched Google Plex, the latest version of Google Pay that combines banking services, p2p money transfers, payments and personal finance budgeting in one application.
Meanwhile, Amazon has been offering a loan program for a long time to attract more Small and Medium Enterprises to its marketplace. Later, Amazon partnered with various traditional financial institutions to increase the scalability of these lending services, as well as Amazon's efforts to reduce the level of risk. Amazon is also developing a contactless technology called Amazon One which is being tested at various retail locations from Amazon's Whole Foods.
In time, Amazon One will be offered to merchants as a service that has the potential to significantly reduce credit card and debit card usage. Today, major technology companies provide financial services through partnership channels with traditional banks. Apple and Google are partnering with banks to embed banking into their services.
While Amazon is seeking institutional lenders to expand its lending offerings, the partnership presents a “win-win” situation for tech giants as well as traditional banks as it helps increase customer attractiveness and retention. However, with the emergence of trends in financial management that are increasingly attached to non-bank applications such as social media, e-commerce and also communication, the technology giants have great incentives and leverage to provide financial services independently without involving banks. once an article reviewing Amazon's plans to build its own bank.
In the race to be the super choice that delivers services, connections, shopping and banking in one app. Traditional banks are likely to face the threat of further exclusion from the financial system.
Important Thoughts For Companies
These tech giants do not stop innovating, they are not satisfied with being the king of the industry because they are aware that the industry is getting busier and it could even start to shrink in size. So they continue to look for new opportunities and even explore opportunities outside their main industry and business. This is in stark contrast to many of today's big companies. Many large companies feel comfortable being the King of the Industry even when the industry starts to be attacked by new players who are more agile and technologically savvy.
Instead of exploring outside their comfort zone, they prefer to play in a game arena that they already know well, even though the arena is getting narrower. These tech giants have a customer base that is not only large, but also loyal. Because over the years this tech giant has invested in the hearts of its customers and in our habits. They make our life easier, solve our problems, make us look Cool. They are also very understanding of us, presenting solutions before we even ask for them.
So now Take a look at your company; what has your company done for customers besides offering your products and services in accordance with Operating Standards? How much is your company invested in making the lives of your customers easier? If one day the tech giant decides to step into your industry and use the power of its data and technology to offer your customers a far superior product or service. What will stop your customers from turning to them.
Realize again that these tech giants have systemic strategies and processes to explore opportunities, to innovate seamlessly, to conduct thousands of experiments each year and to learn from every failure they experience. Then take new, more precise steps quickly and they have been doing it since its inception two or three decades ago. The result: just look at their insane growth in the last 10 years.
So the question to you is what has your company done in the last 10 years? what's different? what changed? what new products are coming out? what new businesses are being encroached on? If your company is like most other large centers. The answer is that not much has changed. If anything, the changes are cosmetic polish here and there, selling old products with new packaging. Indeed, if there are derivative products or modifications and upgrades from the previous product. So that it seems to keep up with the times, even though there are actually fundamentally different things that are significantly different. Apart from that, the way we work is relatively the same, the operating model is the same, the business model is the same. So how long do you think your company can survive in the midst of the onslaught of disruption by the tech giants that have entered your industry? Calm! Our company will be fine. You are sure?
Reference: https://youtu.be/pe1ENZduHgM
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