Business Lessons from Apple and Amazon

Last week, Apple became the first U.S. company to reach a $1 trillion market valuation. It’s a remarkable achievement –crossing a threshold once thought unreachable. Of course, Apple is a unique company, so it’s easy to see how they’d be the first to reach that achievement. Since the days of Jobs and Woz, the company has (mostly) travelled a path formed by creativity, driven by innovation and strengthened by internal struggle. At this point, Apple is almost more of a unique social experiment rather than a plain ol’ ordinary company.

Yet, for all its celebrated notoriety, the Cupertino-based company isn’t the only one to enjoy such rarified air. Amazon and others are in close pursuit of the trillion-dollar mark and will undoubtedly reach it soon enough.

Aside from the first letter in the names, Apple and Amazon share similar characteristics instrumental to their remarkable success. What’s most valuable about the news of Apple’s $1 trillion finish over Amazon is what we can learn from their shared traits, and how we can apply those best practices to the business of automotive retail.

Best Practices for Success

1. Shared values and leadership: The memo sent by CEO Tim Cook shortly after Apple reached the $1 trillion mark is a perfect example of shared values and culture. The takeaway for dealers is how Apple executives have managed to align the company’s goals with human values, hopes and objectives. For Amazon, Jeff Bezo’s “two pizza” rule helps to keep teams small, nimble and connected. This is important, because the digital transformation taking place in the automotive retail industry often requires a culture shift inside dealerships.
2. The use of technology to redefine every facet of the customer experience: For Apple, it’s been about design and intuition – the creation of a device that feels as though it has always been in our hands. In fact, it’s hard to believe the iPhone is only 11-years-old. For Amazon, it’s using data to predict behavior and supply the answer, literally before the question is asked. Both companies blend amazing customer experience technology with an incredible human experience, and the results have changed our lives.
3. Manufacturing a need: No one told Apple that people would go crazy over the iPod. They realized the customer experience of the typical MP3 player was poor, designed an elegant alternative, and defined a customer need. Just the same, they didn’t need a study to show how iPhones could change the world. Amazon also didn’t wait for someone to tell them to create Alexa or apply predictive analytics to the shopping experience. Automotive retailers should think about what they can do, and how they can use data and technology to create a personalized customer experience their store.
4. Creating a personalized experience: Your iPhone is personal to you. It doesn’t need to be a different color because the content is what makes it unique – and thus your relationship to Apple is personal. Amazon’s power is tied directly to the personalization of its shopping channel. From recommendations, to one-click ordering, anticipatory shipping and price optimization, each person’s Amazon experience is unique – and uniquely valued. Creating a similar dealership experience helps make relationships strong and long-lasting.

One day soon, it’s likely Apple’s $1 trillion valuation will be a mere footnote. Amazon, Alphabet and others will catch up and the next threshold will be defined. Yet what’s notable and perhaps even historic is that this success is accomplished in much the same way as it would be at the local dealership: through shared values, innovation, creative thinking and personalization.

Read more about Apple’s $1 trillion valuation here.

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