Is Apple Still Relevant? (Lessons From Lucasfilm’s Star Wars Saga)

Didit Editorial

11 years ago

Is apple still relevant?

November 7, 2013 In recent news, Apple’s new IOS 7 took a clobbering in customer reviews. Other Apple stumbles include some recent dives in Apple’s share price amidst concerns that the iPhone is too pricy for the expanding Chinese market, and the firm’s current lack of innovation in regards to new products.

It seems that these days that Apple is being assailed on all sides. While much of Apple’s troubles are actually fairly typical for a maturing brand, some of Apple’s troubles can be directly traced to the peculiar culture that founder Steve Jobs inculcated into the company. This strengths and weaknesses of this culture continue to play out at Apple, even though Jobs’ day to day presence is no longer felt.

Let’s compare another company with a strong founder who put a personal stamp on company culture: Lucusfilm Ltd. In March, Star Wars was sold to Disney. Aside from minor details that matter to enthusiasts, Star Wars is not only a financially healthy franchise, but Lucasfilm Ltd. is set to survive with its culture and financial integrity largely intact. George Lucas — who got paid $4 billion for the deal — seems satisfied with how things turned out. Whether or not the transition from the sole hands of Lucas into the arms of Disney will work for Star Wars remains to be seen for Star Wars VII, but the early indications have been positive.

Many parallels can be drawn between Lucasfilm and Apple. Both were created by entrepreneurs from California who were fiercely protective of their respective visions. Both are seen as visionary artists. Both men had an undeniable charisma and a fierce artistic vision, and both were passionately protective of their vision as artists and business leaders. So, why is Apple stumbling, while Lucasfilm is in a better position than ever, with Star Wars VII set to be released in 2014?

The value of strategic alliances. George Lucas founded Lucasfilm as a way to bypass the traditional pipelines for film financing while retaining control, but never failed to reach out to other partners for such things as media distribution, merchandising, and film technology development. An example of this behavior is the alliance between Lucas and computer graphics firm Genarts. Apple, on the other hand, has only attempted to partner with other companies for manufacturing, distribution or content, never for technology development. Lucasfilm, on the other hand, because of its prior relationship with Disney in regards to theme park attraction development , was able to make a very natural sale.

Collaborative versus directive management styles. Steve Jobs was well known for his reality distortion field, an expression of his intense charisma which drove his employees to heights of performance and creativity. However, Jobs was a notorious perfectionist who often alienated employees and partners. George Lucas, on the other hand, created a more collaborative and egalitarian culture with profit sharing being the norm and excessive salaries being out of the question. On his movies, George encouraged contributions and input from his employees, something which micromanager Jobs barely tolerated. This paid off for Lucas in the alliances he was able to call upon and good will he had built up in Hollywood and across the world. Jobs, for his part, eventually alienated former allies like Google’s Eric Schmidt with lawsuits.

Knowing when to let go and move on. Lucas agonized over the Disney deal, but because he succeeded in gaining a large amount of Disney stock as part of the deal, plus a seat on the Disney board, still retains a huge amount of influence over Star Wars. Jobs, on the other hand, held Apple in his tight grip until the end. While this enabled Jobs to maintain the distinctive quality and visual design of Apple products, it is now presenting Apple with unique problems, backing the company into a corner in respect to potential partnerships. Lucas has set the stage for Lucasfilm to survive without him, while Tim Cook’s recent stumbles has cast doubt as to whether or not Apple can go on without Jobs.

Looking to the future. One can argue that Lucasfilm no longer exists now as a separate entity from the larger Disney (although other voices contend that is not true, given how Disney has handled acquisitions like Marvel and Pixar), while Apple is still fiercely independent. However, to a certain degree, Apple is now in the cold while Lucasfilm will still continue as a separate film company that will continue to develop its own projects. Lucas’ legacy is safe and part of American culture. Apple’s legacy, however, is still in question, and it remains to be seen whether Jobs’ stamp on Apple’s culture is a blessing or a curse.