Focus on Where You Create the Most Value

Apple Takes a Bigger Bite Than Its Manufacturers;

Ever wonder why Apple seems to rake in the profits while the companies that manufacture their iPhones stay behind the scenes? It's all about identifying and owning the most valuable parts of the value chain.

Here's the breakdown:

• Contract Manufacturers: They handle the physical assembly of iPhones (think: putting the pieces together). This requires expertise, infrastructure, and a large workforce, but the profit margin per unit is relatively low.
• Apple (as the Marketer): Apple designs the iPhone, controls the brand, and handles the marketing. They own the intellectual property and create the desire for the product. This allows them to charge a premium price and capture a much larger share of the profits.

This applies to any business, not just tech giants. Don't get caught up in doing everything yourself. Identify the part of the process where you can add the most unique value and double down there.

Here are some questions to ask yourself:

• What is my core competency? What do I do better than anyone else?
• Where can I create a differentiated product or service?
• How can I leverage partnerships or outsourcing to fill in the gaps?

By focusing on your "better and smarter places" in the chain, you can maximize your impact and profitability, just like Apple does with the iPhone.

#businessstrategy #valuechain #entrepreneur

Let's discuss! What are your thoughts on focusing your efforts in business?

Dramantram 苹果 富士康 和联 纬创资通