Business Model for Mobile Computing - Essay Example

?Apple Should Move To a “Bazaar”, Or Open Source, Model of Development Similar To Android Because This Model Promotes Innovation and Better Products Table of Contents Overview 3 Thesis Statement 4 Discussion 4 Conclusion 7 Works Cited 8 Overview The Information Technology (IT) sector has been riding on an apparent and rapid transition phase since the past few decades. There have been various alterations in the process of data availability and mechanism through which IT giants were practicing business functions. One of the most prominent changes that occurred in the sector during the past decade can be illustrated in terms of ‘open source’ business model which was readily adopted by multiple ambitious global companies. Prior to the conversion, it was the “bazaar” system which was commonly adopted by companies all around the world. Raymond (2001) unambiguously specifies regarding the advantages to implement an open source business model towards obtaining greater competitive advantages and scope for continuous development through innovation. One of the most prominent examples to identify the virtues of an “open source” business model can be regarded with reference to the case of Android software. Notably, it was the open source development model which promoted commercial business of software that further augmented the variables for competition, motivating the major market players to actively participate in product innovation. Hence, from a long term perspective, it becomes apparent that open-source models are likely to be beneficial with regard to industry development and customer satisfaction (Olaleye, “Open Source Business Model for Mobile Computing: Android Open Source Pt. 1”). However, there are a few companies which yet focus on implementing closed business model emphasizing on strict licensing policies such as Apple Incorporation. Thesis Statement Concentrating on the virtues of an open source business model, this essay will intend to evaluate the appropriateness of adopting an open source business model over a “bazaar” system to promote product innovation and quality enhancement in case of Apple. Thus, the discussion will attempt to justify whether Apple should move towards adopting an open source model similar to Android. Discussion In the context of present mobile market, Apple Incorporation is often regarded as a leading brand in the IT industry maintaining a particular brand reputation in the minds of the customer. In its business process, Apple had been marketing its software products with copyright licensing which meant that people would have to buy the product code before downloading or installing the software in their PC or Mac book. On the other hand, another technology industry giant, Google incorporation has been offering its most demanded software Android, uses an open source model which is based on Linux operating system. In this open source Model, customers are allowed to directly download applications or software in their devices in exchange of minimum or zero monetary value. Certainly, owing to their differing business models, the two software companies have gained dissimilar results in terms of product demand, customer satisfaction and competitive advantages. For instance, customers of Apple products (such as Mac book or iPhone) need to purchase the license before installing the software on their devices in exchange of a specified amount. Even though purchasing license tends to boost customer confidence in terms of quality concerns, it has also been observed to hamper their satisfaction level owing to the complex transaction process and limited choices. On the contrary, the software packages of Android is available at a much simpler process along with choices which in turn tends to increase customer satisfaction level; however, it also tends to inhibit customer confidence concerning their quality demanded. Therefore, from a short run perspective, the open-source business model can be termed as advantageous, but from a long-run perspective, the ‘bazaar’ system can be identified as much beneficial. It is worth mentioning in this context that both the business model approaches have certain advantages and disadvantages which need to be considered when adopted either of the two frameworks. When Android was launched in 2007, a business model called ‘open source’ was also introduced which attempted to assist its customers with much flexible software package download and purchase systems. Hence, following the open-source business model, Android began marketing its applications without licensing code where customers with Android products could directly install software or applications as per their requirements in return of minimum or no value. Gradually, with the help of open-source business model, Android was able to gain competitive advantages in terms of rapidly increased market share within a short-term period. Furthermore, in an open-source business model, end-users ultimately become co-developers where they debug, uphold and endorse code or platform which further assists in the improvement of the overall application yielding better innovation scope and customer satisfaction (Boyle, “Open Source Innovation, Patent Injunctions, and the Public Interest”). Conversely, there are certain disadvantages of the model as well. For instance, software as well as applications which have been introduced by Android following the open-source business framework, are not subjected to copyright licensing which increases the chance of quality issues and risk of clone products which can the long run hamper organizational sustainability (Spreeuwenberg & Poell, “Android and the Political Economy of the Mobile Internet: A Renewal of Open Source Critique.”). Stating precisely, from a positive note, the open-source business model can render significant benefits in terms of product innovation scope and augmented customer base along with enhanced satisfaction level; but conversely, it can also result in quality issues and lower confidence level among customers. It is fundamentally owing to these facts that end-users of Android are often noted to suffer from software piracy and infringement (BAE Systems Detica, “Six business models for copyright infringement”). From a similar concern, the vision of Apple provides utmost concern towards quality assurance along with customer satisfaction and sustainability (Goodson, “Is Brand Loyalty the Core to Apple's Success?”). Hence, from a critical perspective, it is suggestible that Apple should not completely transform to open-source business model. Rather, it can proportionately divide its product line to be served through the ‘bazaar model, and partially through the open-source business model. This in turn is likely to assist the company in gaining the virtues of the open-source model over the traditional business framework and simultaneously, minimizing the limitations of the same. Conclusion As a matter of fact, every concept possesses certain drawbacks apart from its advantages. In this context as well, the bazaar system applied by Apple can be identified to incur certain disadvantages in terms of complex transactional procedure, limited choices for customers and specified period of validity in accordance to the licensing policies. On the contrary, the system also offers increased quality assurance and sustainable assistance to the company. Similarly, where on one hand, the open-source model augments the scope for product innovation and competitive advantages; contradictorily, it also gives rise to quality issues which can, in the long-run, hamper the sustainability of the company. Hence, it will be beneficial for Apple to apply both the models in its operational system in order to gain the maximum benefits incurring least probable drawbacks. Works Cited BAE Systems Detica. Six business models for copyright infringement, 2012. Web. 10 Sep. 2012. Boyle, James. “Open Source Innovation, Patent Injunctions, and the Public Interest”. Duke Law & Technology Review Vol. 11, No. 1 (2006): 30-64. Print. Goodson, Scott. Is Brand Loyalty the Core to Apple's Success? 2011. Web. 12 Oct. 2012. Open Handset Alliance. Android, 2011. Web. 10 Sep. 2012. Olaleye, Abiola. Open Source Business Model for Mobile Computing: Android Open Source Pt. 2, 2012. Web. 12 Oct. 2012. Raymond, Eric. S. The Cathedral and the Bazaar: Musings on Linux and Open Source by an Accidental Revolutionary. United States: O'Reilly, 2001. Print. Spreeuwenberg, Kimberley, Thomas Poell. “Android and the Political Economy of the Mobile Internet: A Renewal of Open Source Critique”. Peer-Reviewed Journal Vol. 17, No. 7 (2012). Print. Read More