A tale of two products: Nissan Altima & Apple iMac
I’ve been waiting to write about these two products: Nissan Altima and Apple iMac, for so long. So here are my final thoughts and opinions all written out for the world to see.
I wanted to write about these two products because they represent a complete turnaround and revival of their respective companies. They were built in times of hardship when the companies had limited resources. The products were unexpected success stories for the world, but for the people behind them, they were a part of redemption.
I found these products in the late 90s when I first questioned why all computers came with Microsoft Windows. Why couldn’t you choose a different operating system? This was what let me find out about Apple’s Macintosh computers. Around the same time, I got interested in cars. My mum is not interested in cars at all, so when it came to upgrade cars, I did a benchmarking exercise reviewing all options, to choose her next car. While researching cars, I found the Nissan Altima.
Comparing cars and computers was done often in the 1990s, in particular for Apple. They had a small share in the personal computer (PC) market and their products were more expensive than the other brands. Apple was presented as the luxury brand, similar to BMW or Mercedes Benz of the car industry; justifying that they sell less, but they are still thriving.
In the 1990s, both Apple and Nissan were in financial trouble. The Nissan Altima(3rd generation) and the Apple iMac became iconic products for their respective companies. They were the products that represented the turnaround or comeback. Now I want to describe the similarities or parallels I saw in the making of these.
External CEO
For both companies, their transformations were led by a new CEO that came from outside. Carlos Ghosn became the CEO of Nissan as part of the alliance with Renault. He was the first non-Japanese CEO of a major Japanese company. In Apple’s case, we saw the return of Steve Jobs. He became the CEO of Apple, after Apple acquired NeXT Computer to help them develop a modern operating system for the Macintosh.
Having an external CEO is not a guarantee of success; but in bringing a fresh view and with a clear plan to change things around, success may follow. There is a silver lining of not doing well; it allows for bold changes and trying different methods.
Focus the resources
What both Steve Jobs and Carlos Ghosn had in common as their first actions were to focus and cut costs. Do less, do better.
Carlos Ghosn, coming from France, was known as ‘le cost cutter’. True to that, he closed many factories and reduced the number of car platforms (physical structure, “template”, on top of a car it is built) at Nissan. Nissan had more platforms than General Motors, an industry giant, a much bigger company with more vehicles and brands.
In the case of Apple, Steve Jobs cut many product lines, including the personal digital assistants (Newton), printers, digital cameras, and many versions of the Macintosh computers. He replaced the complex product line of Apple with a simple two-by-two matrix. The matrix was divided into two categories, consumer or professional, with the options desktop or portable. The iMac was part of consumer desktop category.
One thing I found very interesting from Job’s strategy is, he not only cleaned up and focused the inventory of products; he was at the same time, creating an environment inside the company for the next “big thing”. He didn’t know what was going to be next for Apple, but he wanted to create an environment where innovation could happen. The next “big thing” would end up being the iPod, but that’s another story.
Focus on the customer
An important thing to note, both Nissan and Apple had good technology. They had good products, but they weren’t selling well. To make them stand out and communicate their value better, they needed a product that expressed what they stand for.
For Apple it was to go back to basics. Taking inspiration from the original Macintosh, Jony Ive designed the very first iMac (Bondi colour). With a unique all in one design and translucent plastic, it was like nothing ever seen on the computer market. The iMac ditched the old Apple proprietary ports and instead used USB to make it more compatible with PC accessories and printers. The iMac included the PowerPC G3 processor, which was the best processor available at the time from Apple. Most importantly, it was easy to set up and connect to the Internet (even if the customers didn’t know much about using a computer). The iMac was a hassle-free computer for the home that could connect to the Internet and looked stylish and fun.
With Nissan, they took their existing Altima and redesigned to target the biggest car market, the USA. The third generation of Nissan Altima didn’t have an equivalent model in Japan; it was made especially for the USA market. The car interior space grew from 3.1 to 3.36 cubic meters, to fit in with American tastes. An option included for the first time, a V6 engine (the VQ35), which was already the most awarded Nissan engine. The design and the style of the Altima were more aggressive with a more sporty performance. With the Altima, Nissan could differentiate and stand out from their typical competition, the Honda Accord and Toyota Camry. The Nissan Altima was a quality family car, but it wasn’t dull. It was an everyday car breaking the mould.
Success
The Nissan Altima became the most sold Nissan car in the USA, and the iMac became the most sold computer for Apple.
The Altima was well received in the market; it was named North American Car of the Year in 2002 at the North American International Auto Show in Detroit. The third-generation established the Altima as a real competitor to the Toyota Camry and Honda Accord and allowed Nissan North America to reach its 1-millionth vehicle sold in a year.
For Apple, iMac helped them earned $414 million in 1998 and made a profit for the first time in three years. It brought interest back to a company that everybody thought was dead, and opened the gateways for new products like the iBook, iPod and iTunes.
Done, not perfect and continuous improvement
Even though the Altima and the iMac were great products, they were not perfect. I would say it is impossible to get everything right the first time, but their success allowed them to improve from there.
The original iMac came with Mac OS 8, which didn’t have preventive multitasking, something that Microsoft Windows did. It came with a loading tray for CDs, which that Steve Jobs didn’t approve, the tray being late replaced with a slot-loading instead. Maybe removing the floppy disk was done too early?
The Alimta interiors were not the best; they felt very plastic and had some issues with steering. In a later facelift, the interiors were upgraded for a better feel.
I think their success was based on a clear offering and putting out the best they had to offer. Apple put the best processor they had (PowerPC G3) in the iMac, Nissan put their best engine VQ35 in the Altima. They were both delivered with a great design.
Both products continued to evolve, and both companies improved their offerings, and they have maintained their values. The iMac is the best all in one computer desktop, and the Nissan Altima is a fun everyday car. The market changes; now, the iPhone is the most important product for Apple, and the X-Trail is the most sold vehicle for Nissan in the USA. Even though they are not the star products they used to be, how these products were created is still relevant:
- Focus on the customer
- Have a clear goal
- Stand for something
- Put into the product the best you have
- Done, not perfect
- Iterate to improve
