Thursday, August 14, 2008


From a market capitalization point of view, Apple and Google are roughly equal in value (around $159 billion). That is a creditable achievement for Apple for sure. I doubt few could have made this prediction a year or so back.

John Henderson and I derived a typology of business model innovations in the network era. For that typology, Apple is prototypical of Design-and-Dominate approach and Google as reflecting the Explore-and-Exploit approach.
It is interesting to see that these two companies pursuing two different approaches to crafting winning strategies in the network era have arrived at the same level of market capitalization today. I expect to see Apple do well in the coming months with further enhancements to its design-and-dominate strategy with Macs, iPhone and iPod. I also expect to see a rejuvenated Google dominate the online advertising and related areas (and finally develop monetized business models with YouTube and Android mobile phones).

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