Happy Birthday to DigNuggetville.com!

Hola Todos!

It seems as the year just flew past but today is a milestone post on DigNuggetville.com.  One year ago today, I posted the “Inaugural Post” outlining the mission and goals for DigNuggetville.  By enlarge, the blog stayed on course I’d say and I hope year number two builds from the nuggets gained from this past year’s experience.

In honor of today’s milestone, I reposted the Inaugural Post as well as the Top 10 Most Popular Posts for the year.

Thanks for interest in DigNuggetville!

Best regards,

Dr. Dan-o

 

August 10th, 2011

Hola Todos!

I hope the summer has been treating us well.  For some time now, I have been cooking up the idea for – dignuggetville.com – so WELCOME to the inaugural post.

The number one mission of this blog is to disseminate, distribute, broadcast, circulate, etc., nuggets.  As you recall, nuggets are takeaways – a kernel of information you would like to stow away for future use.

Now in class, I made you record things in your journal (and yes I know a few of you out there still keep your journal alive).  Either way, I want to continue our conversation and share more nuggets.

The recording of nuggets is strongly rooted in learning theory and is the foundation of my teaching philosophy (click here for part one and click here for part two).   Broadly speaking, the main thrust of our discussion will involve (but not limited to) my main areas of interest:

  • Marketing Strategy
  • Marketing Research
  • Servant Leadership
  • Web 2.0/Social Media
  • Personal Selling and Sales Management
  • Consumer Behavior
  • Books/Business Media Recommendation
  • Networking (e.g., the old fashion face-to-face kind, as well as, the newer social media kind)
  • All things Apple Inc, Google, and the entire auto industry (just kidding)

Most importantly, I would like to hear from you.  If you are having a problem at work or want to talk through a career related decision, these are things I help out former students colleagues with on a weekly basis.  In summary, if there is something you would like to ask, please post a question.

Again, welcome to Dr. Dan-o’s creation – dignuggetville.com

Best regards,
Dr. Dan-o

 

Top 10 Posts for the Year

-Steve Jobs Book Summary by Malcolm Gladwell

-Steve Jobs Book Summary by Adam Lashinsky

-Market Orientation: Plus Market Driven vs. Market Driving

-How High Will Apple’s Stock Go? Dr. Dan-o in Yahoo Finance

-Apple TV: Maybe its Just a Cable Box

The Information Tsunami on This Week in Social Media

-Steve Jobs: A “Different” Kind of Leader

-iPad3 or iPadHD Day: More Helium for Apple’s Stock Price – Dr. Dan-o on MSNBC.com

-Nugget Dictionary Keyword:  Klout or What is Your Klout Score?

-Apple’s New Sandbox – Textbooks – It Might Disrupt More Than Just The College Textbook Industry

 

 

Steve Jobs Summary: The Life Story from Wired Magazine

Hola Todos!

I guess the understatement of the day would be to say that Steve Jobs was a complicated man.  That said, Ben Austen of Wired Magazine (click here) is the latest to try and describe the “gospel and the antigospel” of the man that even after 10 months after his death, still transfixes those in the Valley and beyond.  It’s an excellent read.

Beyond this article, Walter Isaacson’s authorized biography of Steve Jobs provides the best account of the life of Mr. Jobs.  Malcolm Gladwell did an excellent summary in The New Yorker for those who want a Cliff Notes version (click here).

Best regards,

Dr. Dan-o

 

Daniel M. Ladik, PhD

Associate Professor of Marketing

Stillman School of Business

Seton Hall University

 

 

Apple: Its Products are more Hype and Overpriced?

Hola Todos!

I am not a journalist but as a professor whose career is predicated on the double-blind review process, I know a faulty argument when I see one.

In the article “The Unspoken Truth About Apple” (click here) by Don Reisinger (a contributor to Fortune.com), believes “the Cupertino company’s products aren’t always the highest of the high-end.”

The argument is flawed on many levels but I can sum it up in one line: he’s not comparing apples to apples (sorry for the pun).  For instance, Mr. Reisinger asks, “Is Apple really the company that delivers the highest of the high-end? Not a chance.”

As evidence, he presents the following argument:

“Let’s take the iMac, a popular, all-in-one computer Apple sells at a price starting at $1,199. For that sum, consumers are getting Mac OS X, which is a plus, as well as a 21.5-inch screen. A 2.5GHz quad-core processor and 500GB hard drive help round out the offering.  There’s just one issue: Dell has it – by a mile. For just $850, consumers can buy an all-in-one PC with a 23-inch screen and the same 2.5GHz quad-core processor. Add that to the 1TB hard drive and 1080p display, and it’s clear customers are getting a better value from Dell.”

Flaw #1 in Mr. Reisinger’s article is he’s confusing “the high-end” meaning “the cutting edge” with “a higher price.” Sure there are computers, smart phones, and other technology devices that have features that are more cutting edge than Apple; Near Field Communication for instance.  However, the assumption of “the best technology” is “the best for the consumer” is flawed logic.  Is it really best for the consumer to have a cutting edge technology like NFC that is not widely accepted by retailers, banks or vending machines? If a consumer chooses Android over iPhone because of NFC, yet cannot find one place to use the NFC, is the cutting edge technology really useful?

Flaw #2 in Mr. Reisinger’s article is he’s confusing “higher price” with “value.”  He admits the iMac’s design is significantly better than anything HP or Dell has but then insinuates that Apple consumers are overpaying for the design.  In the same Dell argument above, he feels Dell has Apple beat because a it has a cheaper price and you get a larger hard drive, and a larger HD screen.

The main flaw is he is only comparing price with the similar specs and not the dissimilar specs.  Once or twice a year, The Wall Street Journal stalwart Walt Mossberg reviews the best bang for the buck in PCs and consistently states that the beyond the OS, the other software that comes free with Apple computers (iTunes, iCloud, iPhoto, iMovie, GarageBand, etc), clearly makes up for or is better than the difference in price between Apple and the competition.  Try making a movie from your family vacation on any pre-loaded software from Dell.  The same could be said for organizing your entire music collection (let alone buying music, movies or books) or your photo collection on anything Dell has preloaded.

And if that wasn’t enough, what happens when a Dell malfunctions?  You either have to ship it somewhere or go to Geek Squad and pay though the nose.  Apple customers just visit the Genius Bar.

If you want to talk about value, for technical products, Apple’s “killer app” is really their after sales experience with the free classes they offer in the stores and the Genius Bar trouble shooting.  Try and do that with a Dell or an HP.

Sorry Mr. Reisinger, your argument has a great headline that might attract some attention but the article does not have the depth or detail to support its claims.  Perhaps your editor put you up to it…

Something to think about today…

 

Best regards,

Dr. Dan-o

 

Daniel M. Ladik, PhD

Associate Professor of Marketing

Stillman School of Business

Seton Hall University

 

 

Apple’s Stock Price: 6-to-1 Split and Headed to the DJIA?

Hola Todos!

Financially speaking, Apple has certainly earned the right to be considered for the Dow Jones Industrial Average and Paul R. La Monica of CNNmoney.com makes a solid case for Apple’s inclusion (click here).  The current tech companies on the DJIA include struggling Cisco and HP, as well as, the stronger set of IBM, Microsoft, and Intel.

One major issue that would prevent Apple from joining the DJIA is that the Dow is a price-weighted average and not a market cap-weighted index like the S&P 500 or the NASDAQ Composite.  With Apple’s share price hovering around $600, Apple would skew the Dow too much at its current price but a 6-to-1 split could rectify that.

The question remains however, does CEO Tim Cook want to steer Apple in the DJIA direction?  While there is no question that Mr. Cook is doing things a bit differently than Mr. Jobs (dividends for instance), but I have listened to Mr. Cook on a number of earnings calls and I’m not even sure I would even use the word “lukewarm” to describe his interest on this issue when probed by the analysts.

There is no question, just like Mr. Jobs, that Mr. Cook’s #1 focus is on Apple’s products and not Wall Street.  My though is unless there is a strategic reason or positioning that Apple wants to achieve, Mr. Cook will not distract Apple from its main focus: products.  And with all that is rumored on Apple’s plate for the remainder of this year (click here), Apple probably does not want to be distracted.  Moreover, Apple does one or two major things at a time, and I doubt that this is #1 or #2 over the next 6 months.

Something to think about today…

Best regards,

Dr. Dan-o

 

Daniel M. Ladik, PhD

Associate Professor of Marketing

Stillman School of Business

Seton Hall University