This week, I read the article from the San Francisco
Chronicle’s website (SFGate.com) titled “Facebook, It's Time To Face Facts: You
Need Apple More Than It Needs You (AAPL)”. In this article, Yarow argues that it is time for Facebook
to agree to Apple’s terms and partner with it (Yarow, 2012). Yarow acknowledges that both Apple and
Facebook are doing well, but it would be even better (especially for Facebook)
if the two were to join in a partnership (2012). Yarow cites Facebook’s company mission as a clear indication
that it needs Apple when he says, “Because Facebook's core mission, according to
Mark Zuckerberg's letter to investors, is "to make the world
more open and connected." He also said, "At Facebook, we build tools
to help people connect with the people they want and share what they want, and
by doing this we are extending people’s capacity to build and maintain relationships."”
(2012, p. 1).
Yarow notes that Apple doesn’t need Facebook to achieve its company
mission, but that Facebook does, in fact, need Apple (2012).
This article reminded me of the
readings that we did this week on company alliances. In particular, it made me think of Gomes-Casseres
(1993). Gomes-Casseres breaks down
what businesses look for when selecting partners (1993). Selections are best when “the
combination of partners results in the greatest benefit to collaboration and
minimal costs” (Gomes-Casseres, 1993, p. 5). Apple and Facebook have the platform to allow them to
collaborate easily with low costs and minimal effort. In his article, Yarow mentions a similar collaboration that
Apple had with Twitter illustrating this point (2012). Apple has already paved the way with
their merger with Twitter, and it can be duplicated with Facebook.
Gomes-Casseres also describes the ideal structure for an
alliance (2012). An alliance
between Apple and Facebook falls right into that vision (Gomes-Casseres,
2012). This partnership would help
to complete the two companies, as opposed to create a conflict (Gomes-Casseres,
2012). Apple and Facebook function
as two separate entities; however, Facebook, which acts as a large social media
networking and entertainment site, can be experienced more fully on Apple
products (such as the iphone and ipad) and current Apple users and potential
Apple customers would probably like that higher functionality.
As a Facebook user and an Apple product owner, I personally
would love to see the two companies form an alliance. Facebook has grown exponentially since it first opened its doors
in 2004. Now, a Facebook user can
share music through Spotify, pins through Pinterest, videos through Youtube,
and articles through Yahoo News and the Huffington Post. If Facebook were to somehow integrate
with Apple, a company that does a phenomenal job in creating product, the
sharing possibilities would be endless.
References:
Gomes-Casseres,
(1993). "Managing International Alliances: A Conceptual Framework." Harvard
Business School. pp. 1-20. (Full Article)
Yarow, J. (2012,
February 19). Facebook, it's time to face facts: You need apple more than it
needs you (aapl) . San Francisco Chronicle.
Retrieved from Facebook, It's Time To Face Facts: You Need Apple More Than It
Needs You (AAPL) Read more:
http://www.businessinsider.com/facebook-apple-2012-2
Thanks for sharing. I feel pretty old but I have no clue what a Spotify and Pinterest is. Now having said that I am on the internet a lot with school and work yet I have no clue what these two things are. If I don’t there are countless others who don’t. If these companies’ products are being utilized on Facebook by a few but not the masses then an alliance of Facebook and Apple could not only open up their own businesses but the others that tag along as well. I agree this alliance could be huge. And it would be exciting to see what this could bring into our lives and change it yet again.
ReplyDeleteMy only concern is all of these mergers and alliances seem to be watering down competition and I am afraid of the vanilla America it may leave behind. Do you think this alliance might hinder creativity? Who knows in time Apple may have developed a social website that revolutionized everything and made us connect in a way we never thought possible. If they build an alliance then Apple doesn’t have to do that and we just get Facebook. I realize Apple doesn’t want to waste resources on things that aren’t in their core competency, but I also think building an infrastructure for social gathering on the web would be easy for them. I think they could build it within the Apple Cloud. I think Facebook needs Apple way more than Apple needs Facebook.
A potential partnership between Apple and Facebook is interesting to consider. You mention that Facebook needs Apple, but that Apple doesn’t need Facebook. Why do you think this is the case? Can you think of any value that Apple might derive from an alliance with Facebook? If not, why would they consider partnering with Facebook? Gomes-Casseres talks about three types of strategic goals that drive firms’ decision to collaborate: product exchange, corporate learning, and market positioning. Which goal(s) do you think would drive a Facebook/Apple partnership?
ReplyDeleteI was extremely intrigued by the notion of Facebook and Apple creating a partnership. I agree that Facebook does need Apple in an effort to achieve their core mission “to make the world more open and connected”. Apple products are growing in popularity and having direct access to that market could only benefit Facebook. As you said, “the sharing possibilities would be endless”. My mind can’t even begin to conceive the opportunities that would become available if such a partnership was created. According to the quote from Yarrow (2012) of “it’s time for Facebook to agree to Apple’s terms”, it’s seems as if Apple has opened the door for this partnership and Facebook is being hesitant. I am unfamiliar with the current situation, but it does peek my curiosity of what Apple is asking and what Facebook’s hesitations are. It appears as though Apple has progressed into the “selecting of partners’ that Gomes-Casseres (1993) mentions; while Facebook is still figuring out the “logic of collaboration” (Gomes-Casseres, 1993). Nevertheless, I will be looking forward to the outcome of this potential alliance. Thank you for sharing!
ReplyDeleteCathryn, great choice of article for this week’s assignment.
ReplyDeleteI’m not a big Facebook, nor Apple, fan. Truth be told, I’m a Google/Android user through and through. For me it comes down to choice, and its choice that Apple just doesn’t offer. I’m willing to bet that Zuckerberg might feel the same. It may be that Zuckerberg sees he’d have to make more concessions than he’s prepared to in entering into an alliance with Apple. For its part, Apple is already claiming that Facebook is asking for too much (Yarow, 2012). In this week’s reading Kanter spoke of companies that “worry more about controlling the relationship than about nurturing it.” (2010, pp. 96). Looks like these two may already be playing that game. Both companies are giants in their respective industries, both have a certain way of doing things, but Apple also has a reputation of dictating what does and does not make it into its finished product. So perhaps Zuckerberg is right to hesitate and these two would be better off staying their separate courses.
I’m inclined to disagree that Facebook really “needs” Apple (Yarow, 2012). First, there’s the lack of any real competitor to Facebook’s platform. MySpace has been effectively run out of the social networking business (Koehler, 2010) and Google+’s mere 40 million users pales in comparison to Facebook’s 800 million users (Claburn, 2012). Moreover, Facebook may be looking at the market trends indicating that Apple is losing some of its market share to Android devices (Mawston, 2012), a platform on which Facebook already lives quite happily.
If anything, I’d say Apple is under greater pressure than Facebook to make this partnership happen. I’m sure, Cathryn, you’re not the only Apple user who wishes they had more of Facebook’s functionality on their devices.
References:
Claburn, T. ( 2012, January 04). Google+ Growth Numbers In Spotlight: Despite lingering skepticism, Google's social network is defying naysayers by thriving. Retrieved from http://www.informationweek.com/news/software/productivity_apps/232301222
Kanter, R. (2010). "Collaborative Advantage: The Art of Alliances."Harvard Business Review. pp. 1-16.
Koehler, M. (2010, Nov 1). MySpace Tries For Another Resurrection. [Web log post]
Retrieved from http://www.revenews.com/social-networks/myspace-tries-for-another-resurrection/
Mawston, N. (2012, January 26.) Strategy Analytics Press Release: Android Captures Record 39 Percent Share of Global Tablet Shipments in Q4 2011. [Web log post] Retrieved from http://www.strategyanalytics.com/default.aspx?mod=pressreleaseviewer&a0=5167
Yarow, J. (2012, February 19). Facebook, it's time to face facts: You need apple more than it needs you (aapl) . San Francisco Chronicle. Retrieved from Facebook, It's Time To Face Facts: You Need Apple More Than It Needs You (AAPL) Read more: http://www.businessinsider.com/facebook-apple-2012-2
Thank you for the comments everyone. It's interesting how everybody has reacted to this article differently, but everybody has an opinion.
ReplyDeleteKristina, I completely understand your concern about a Facebook/Apple dominated world. Would it almost be a monopoly? OR would these once upon a time ago start-ups influence a whole new slew of start-up companies? Is the next Mark Zuckerberg or Steve Jobs out there watching Apple and Facebook growing and wanting to take their piece of the pie with their new idea? Food for thought...
Jessica, I think that both companies would have market share to gain with an alliance. However, I still hold my stance that Facebook has more to gain. As mentioned in others' comments, Apple has so many platforms and products that it almost makes Facebook look one dimensional. For Facebook, joining with Apple means getting their product to piggy-back on everything Apple, which would be huge. BUT for Apple, it allows the company to target a very hot audience...millennials. At macys.com, we constantly talk about the importance of attracting millennials because of their current and future impact on our economy. This merger would allow Apple to excite and attract this age group on a much larger scale.
Shanah, wouldn't it would be a wonderful thing?
Felipe, while you respectfully disagree, I admire your brand loyalty to the Android and Google platforms. :)