Over the course of the last few days, I’ve read a couple of different news releases and articles regarding recent company downsizings, in light of the current economic turndown. One of them concerns Microsoft. Beyond the train-wreck called Vista, it seems they keep making miss-steps that may be why they’ve announced some pretty extensive layoffs this week – 5000 employees.
One release describes that some of these cuts include the disbanding of the ACES Studio team which is responsible for Flight Simulator, as well as other games. And another describes that even though the revenue stream from some of these games has been small, it has been positive – while the Zune player that’s designed to compete with Apple’s iPod – has been loosing money. And, we see another case of “We have to show that we’re better than XXX company – so let’s cut those areas that are profitable and use the money we save to throw at unprofitable business units!”.
I now read the following article from CNET- based on an interview with Steve Jobs when iTunes was only 8 months old:
Hmmm…seems Steve was right! Now, this doesn’t mean that Steve is a genius. Yes, Steve believes in both his company, it’s products, and his ability to read the market (and understand his customer). But, that’s the point – he understands his customer! Too many companies spend their time – and their marketing efforts – on telling the customer what they need and want. But, I’d say that the most successful companies (at least for the long-term) – spend their time and efforts trying to figure out a better way to deliver to their customer what they ask for.
When you think of Apple’s designs – whether it’s an iPod, a MacBook, or the iPhone – they take the time to make sure that it’s not just “pretty” – it also delivers to the customer what they asked for.