How 7 Stocks Became Magnificent With 3 Secrets
Unlock entrepreneurial success with insights from the 'magnificent seven' tech giants. Learn from Apple, Amazon, Alphabet, Facebook, Microsoft, Netflix, and Tesla to innovate, build ecosystems, and focus on customer experience. Find inspiration for your startup journey!
The "magnificent seven" refers to seven of the most successful, influential, and highly-valued technology stocks that have dominated the markets in the past couple of decades: Apple, Amazon, Alphabet (Google), Facebook, Microsoft, Netflix, and Tesla.
These companies have become industry giants worth over $1 trillion each (at the time of this writing in February 2024). They have produced life-changing technologies, massive profits, and tremendous shareholder value.
So, what lessons can entrepreneurs take away from the magnificent seven that can be applied to startups and small businesses today? Here are some key insights:
Mike Parsons
Innovate and Disrupt Established Industries
Many of the magnificent seven became successful by innovating in stale industries. Apple revolutionized consumer electronics with sleek, user-friendly designs. Amazon disrupted retail through e-commerce and a customer-first mentality. Netflix transitioned from DVD rentals to pioneering streaming video.
Tesla made electric vehicles exciting and high-performance when the existing auto industry was skeptical of EVs. Entrepreneurs can change the world by identifying innovative opportunities and sparking change in complacent industries.
"The best way to predict the future is to invent it." - Alan Kay
Mike Parsons
Leverage the Power of Data and Networks
Facebook grew into a giant by establishing powerful network effects - its social value came from having each new user make the network more valuable for everyone else.
Google succeeded by developing superior search algorithms that got better the more data they accumulated. Netflix leverages user data to inform decisions on content. Entrepreneurs can follow their lead by tapping into data and networks to improve products and gain a competitive advantage.
"Data is precious and will last longer than the systems themselves," said Tim Berners-Lee.
Build Ecosystems and Platforms
Apple's closed ecosystem of sleek devices, apps, and retail stores locks in customers. Amazon has built an e-commerce platform with immense scale. Microsoft's Windows and Office established dominant platforms in the PC era.
Entrepreneurs can achieve better growth by building their platforms and ecosystems of complementary products and services that get users hooked on their offerings.
"I think that platforms are tools for economic empowerment." - Reid Hoffman.
Adapt Business Models for the Future
Microsoft fell behind as tech shifted to mobile and cloud computing, but Satya Nadella led a successful transformation of their business model. Netflix had the foresight to change from DVD rentals to streaming video.
Entrepreneurs must have the courage to make significant business model pivots to adapt to market changes. Being rigid can lead to extinction.
"Flexibility is a lifelong trait. The flexible man is the purposeful man." - Eric Hoffer.
Focus Obsessively on the Customer Experience
Amazon's customer-centric culture of experimentation and feedback is legendary. Apple design guru Jony Ive once said: "We're keen to design products that people fall in love with." Tesla cars overflowing with innovation because Musk believes in making the products he wants.
This obsession with customer experience needs to be instilled in startup culture from day one. If your customers love your product, growth will follow.
"If you are not taking care of the customer, your competitor will." - Bob Hooey.
The magnificent seven have shown how visionary leadership, innovative strategy, and excellent execution can build hugely valuable companies that change the world. Entrepreneurs should aim to follow in their footsteps. With inspiring role models like these, the possibilities are endless!