In October 2000, near what he thought was the end of process, Johnson woke up in the middle of the night before one of Tuesday’s meetings with a painful thought: they had gotten something fundamentally wrong. They were organizing the store around each of apple’s main product line, while it should be around things people want to do. E.g. there should be a movie bay where various Mac products will run movies showing how to import movies from camera and how to edit.
Johnson arrived at job’s office early that Tuesday and told him about his sudden insight that they needed to reconfigure the store. Job’s erupted “Do you know what a big change this is , I’ve worked on this store for six months and now you want to change everything.” Jobs suddenly got quite” I’m tired, I don’t know if I can design another store from scratch”.
Johnson was speechless and jobs made sure he remained so. When they arrived at the destination after a long ride, to Johnson’s surprise Job’s opened the meeting by saying “Ron thinks we’ve got it all wrong. He thinks it should be organized not around the products but instead around what people do. And you know he ‘s right”. He said they would redo the layout, even though it would likely delay the planned January rollout by three or four months. “we’ve got one chance to get it right”.
When the revised proto type as finally completed in January 2001 board approved it . Industry experts disagreed.
“May be its time Steve jobs stopped thinking quite so differently”. Business week wrote.
“Sorry Steve, here’s why apple stores won’t work”. Apple’s former CFO was quoted saying.
“I gave them two years before they are turning out the lights on a very painful and expensive mistake”. David Glodstein, retail consultant
On may19, 2001, the first Apple store opened in Tyson’s corner with gleaming white counter, bleached wooden floor and a huge Think Different poster. They proved skeptics were all wrong. Earlier opened, Gateway computers stores average 250 visitors a week. By 2004 apple stores averaging 5,400 per week. That year store had $1.2 billion in revenue, setting a record in retail industry for reaching billion dollar mile stone. People started traveling to store and started waiting outside..
In July 2011,a decade after the first store opened, there were 326 apple stores. The average annual revenue per store as $34 million and total net sales in fiscal 2010 were $9.8 billion. But store did even more. They directly accounted for only 15% of apple revenue, but by creating buzz and brand awareness they also helped boost all products company made.
– Excerpts from Book on Steve jobs.
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