How did Steve Jobs save Apple using the Law of Elimination?

In 1997, when Steve Jobs took over as Apple’s CEO, the company was staring at bankruptcy.

Apple’s product portfolio was over-burdened with dozens of models with no clear product differentiation. 

It faced stiff competition.

On February 5, 1996, BusinessWeek put Apple’s famous logo on its cover to demonstrate its lead story: “The Fall of an American Icon.” 

In short, Apple was in mess in 1996.

Many analysts who observed the situation believed Steve Jobs would develop and launch advanced products to save Apple.

But, he did something unexpected.

Jobs cut all of the desktop models—there were fifteen—back to one.

He cut all portable and handheld models back to one laptop.

He completely laid off all the printers and other peripherals. 

He cut development engineers, software development, distributors and five of the company’s six national retailers. 

He cut out virtually all manufacturing, moving it offshore to Taiwan. 

With a simpler product line manufactured in Asia, he slashed the total inventory by more than 80 per cent. 

A new Web store sold Apple’s products directly to consumers, cutting out distributors and dealers. 

By simplifying the product portfolio, Steve Jobs not only saved Apple from the brink of bankruptcy but also brought a renewed focus and energy back.

He then concentrated on developing breakthrough products like the Ipad and iPhone that changed Apple’s destiny.

During the mastermind sessions, I usually tell this story to my clients to convey the significance of simplification.

It is not the addition but the subtraction that matters the most.

I call this the Law of Elimination.

It helps you to focus on the VITAL FEW things and ignore the TRIVIAL MANY. 

Remember, with a simplified and differentiated product portfolio, Apple is one of the most profitable consumer-facing companies in the world. 

It reported $20.6B Profit on $83.4B Revenue (on October 2021).

Want to simplify your marketing strategy, write to me at [email protected]

Rajesh Srinivasan, Marketing Strategy Consultant | Author | Tedx Speaker