...of the iPod on music industry Table of Contents Section 1: Introduction Page 4 Section 2: Technology Adoption Page 4 Section 3: Value Chain Page 5 Section 4: Relationships Page 6 Section 5: Conclusion Page 7 Section 6: References Page 7 Introduction The purpose of this report is to discuss the functions and features of Apple’s innovative MP3 player. I will be relating to the Schumpeterian model, as to how the iPod led to rapid mainstream adoption, whilst similar products failed. I will also consider the opportunities which promoted this device and the challenges that the Apple iPod currently face, highlighting the effects on the traditional music industry value chain, compared to the current value chain. In addition, I will discuss how the iPod developed working relationships which has assisted in Apple’s e-business success. I will then finish by concluding my findings. Technology Adoption The Schumpeterian model looks at the relationship between technological innovation and business activity. According to Perez (2002) there are five typical stages of each wave, which I will briefly describe. Irruption The Apple iPod was launched in 2001, a sleek and stylish MP3 player with an easy user interface, compressing digital audio files the iPod holds up to 1,000 songs and fits neatly in your pocket. The iPod also came...
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...iPod : Creating An Iconic Brand HAMZA ŞANDA Product Introduction The iPod is a combination portable storing and playing audio files encoded by MP3 or AAC from Apple Computer and launched in 2001. The product line-up includes iPod Classic, the touch screen iPod Touch, the compact iPod Nano and the ultra-compact iPod Shuffle. All iPod models use an extremely small hard disk for storage. Also iPod Shuffle uses a flash memory; unlike the memory found in computers. This flash memory doesn’t lose its contents when the power is turned off. The storage capacity of all models has increased over time. From 2001 to 2011, it’s reported that Apple have reached 275 mio iPod sales. In just first quarter of 2011, more than 19 mio iPods had been sold worldwide and monitized 24,67 billion USD Revenue with 5,99 billion Net Profit. Brand Elements Name : iPod Slogan : 1000 songs in your pocket Character : Silhouette URL : http://www.apple.com/ipod/ Logo : Just Apple logo Symbol : brand name itself Packaging : Simple and fascinating What is the most important feature of iPod? The most important feature of iPod is the easy user interface. All iPOD models have an innovative and a simple design with color displays use antialiased graphics and text, with sliding animations. All new generation iPods have five buttons, also one is integrated into the click wheel as an innovation that gives an uncluttered, minimalist...
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...About iTunes iTunes makes it easy to enjoy your favorite music, movies, TV shows and more on your PC, iPhone, iPad, or iPod. iTunes includes the iTunes Store, a place you can download everything you need to be entertained, day or night. iTunes now stores your purchases in iCloud and makes them available on your devices anywhere, any time, at no additional cost. What's new in iTunes 10.5 • iTunes in the Cloud. iTunes now stores your music and TV purchases in iCloud and makes them available on your devices anywhere, any time, at no additional cost. • Automatic Downloads. Purchase music from any device or computer and automatically download a copy to your PC and iOS devices. • Download Previous Purchases. Download your past music, TV, app, and book purchases again, at no additional cost. Previous purchases may be unavailable if they are no longer on the iTunes Store. • Sync with your iPhone, iPad, or iPod touch with iOS 5. • Wi-Fi Syncing. Automatically sync your iPhone, iPad, or iPod touch with iTunes any time they're both on the same Wi-Fi network. Note: iTunes 10.5 no longer requires or includes QuickTime. For information on the security content of this update, please visit: support.apple.com/kb/HT1222[->0] iTunes 10.5 requirements Hardware: • PC with a 1GHz Intel or AMD processor and 512MB of RAM • To play Standard Definition video from the iTunes Store, an Intel Pentium D or faster processor, 512MB of RAM, and a DirectX 9...
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...October 2011 The IPods Impact on Society “Design is not just what it looks and feels like. Design is how it works.” (Issacson). This is a famous quote by Steve Jobs. The project was a secret. Other then Steve Jobs and a few other apple executives nobody knew what it was. The code name was P-68 (Knopper). The IPod was introduced to the public in 2001. At first, it was only compatible with Mac computers, but two years later, the iPod could be used with any type of computer. This caused sales to skyrocket! Steve Jobs worked with apple inc. to come up with the IPod. Although Apple was not the first to come up with the idea of an mp3 player, no other mp3 player has ever been as big of a hit. Sony and a few other companies had come up with digital music players a few years prior, but their versions were more expensive and could not hold nearly the amount of songs as the IPod could. The IPod was the first mp3 player to really succeed because people loved the idea. Not only was the IPod a convenient way to store music, It was a social and fashion statement. The IPod changed everything about society. Think about how technology, fashion, and the Internet have changed since the IPod. The ads were genius, making the Garrett 2 IPod an irresistible necessity. Marketing caused the IPod to be “cool” and every one wanted one. The IPod has changed society in more ways then anyone could have imagined, but not all of the changes are positive. The invention of the IPod has led to advances...
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...innovation and music there is something magical about the name Apple. While ages ago our ancestors were bothered by the question of who came first a chicken or an egg, today the question is different. As the fame and success of Apple company and its products is increasing, the question one may rise is for example: what came first … the iPod or iTunes? In my paper I would like to present the financial report of the iTunes. To begin with I would like to give some background history of the product because even though the product itself is familiar to everyone, some may still wonder of its origin and principle function. As a matter of fact iTunes came first, even though it seems that we started hearing about the iPods much earlier. Before the iPod was released, Mac users had had the ‘iLife’ on their computers. The Ilife also included iTunes version 1.0 – however it looked rather different from the “modern” iPods or itunes. The main difference was that the iLife has a three-note icon and not the double green one which people are familiar with today. So, as we can see, the iTunes was around, for for the Mac only, of course, from January 2001. In April of 2003, a new version of iTunes (4.0) was released. That same year the iTunes Store – where you could legally buy and download music was officially launched. However, at that time the store was for the customers within the United States only, the rest of the world still had to wait. At last, in October 2003 the iTunes version 4.1 came...
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...Information Systems Case: Apple Inc. 1 Executive Summary It is said that luck follows determination and courage in business. Apple Inc. is one of global giants that has proved this correct – it has completely taken a U-turn in the IT business. Renowned around the world for innovation and quality finishing of its products, Apple Inc.’s humble start as a computer manufacturer has not deterred it from ruling the world of technology and entertainment in a market where giant names like IBM and Microsoft also thrive. The financial position of Apple has become very strong over the past three years. Growing 15% from 2007 to 2008 and 20% from 2008 to 2009, Apple Inc. has maintained a steady and rapid pace that few other companies as innovative as Apple can match (Annual Report, 2009, p.19). The launch of the iTunes music store, that later expanded into a comprehensive online store for videos, books and audios, was a different business model altogether that reaped success within the first week of its launch. However, the subsequent events that occurred in the market and the various risks that are associated with Apple Inc.’s strategy for iTunes are some of the reasons that warrant a revision of the operational strategy, partially, if not altogether. The issue of digital rights management (DRM) and software piracy propped up and Apple has ever since paid out to artists and record companies more than it has pocketed itself. There are several lessons that Apple can learn from the...
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... Bus 400 Memo: Apple Inc. Apple Inc. is considerably the most successful company of the past decade. A company that currently has more cash funds available than the Federal Reserve and looks like it will keep on growing. Even though they lost their biggest asset, Steve Jobs, to a tragic death due to illness, Tim Cook seems like the right man to keep Steve’s vision alive. Steve Jobs had a vision of making Apple Inc. a cultural force through differentiation and style of his products. He was responsible for bringing out those innovative products that we all love: the iPod, iPhone, and iPad. Jobs wanted to reposition the company and take advantage of the consumers who were becoming more tech-friendly and taking on a more digital lifestyle. Apple’s first big move was the iPod. The portable digital music player was the first time that Apple took on another market away from its business core, computers. Right from the start the product was a huge hit. The two factors that made the iPod stand over their competitors were the memory capability and its sleek design. The first iPod could store around 1,000 songs when other MP3 players in the market could only store around an hour of music. The iPod quickly took over the market taking a 70% market share in the MP3 player industry. Another big factor that benefited the iPod was that it worked with both Mac and Windows, the first time Apple released a product that could work with other software...
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...computers, Apple computers (the name used in the past) have an early mover advantage in the personal computer market. Subsequently, Macintosh was introduced, demonstrating high level of user-friendliness, industrial design and technical elegance. Constantly innovating and differentiating its products from its competitors, Apple enjoys a reputation of being a revolutionary and versatile company in the industry. Apple also controlled its products software licensing and peripherals where they directly produce their own computers, their own operating system, and own suite of software, ports and even mouse. This allowed seamless and non-disruptive design concepts making Apple a choice for users demanding unique and beautifully designed machines. While the strict controls of Apple software and peripherals allowed Apple to create a preferred user experience, it is also arguably a weakness that has greatly restricted the rate of penetration of Macintosh in the personal computer industry during the Apple’s OS war with Microsoft. Apple placed great emphasis in marketing, research and development- perhaps the most important factors that allow Apple to create and sustain its loyal following. In marketing, John Sculley, the man behind the Pepsi’s challenge campaign was invited to the board and subsequently replaced Steve jobs, demonstrating Apple’s early emphasis in marketing. A higher than industry level of revenue was also channeled to research and development, allowing Apple to create...
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...Communications 37 Developing an Integrated Marketing Communications Plan 37 Overarching Goals of the Plan 38 Message Development 38 Communication Media, Venues, and Campaign Elements 39 Tactical Marketing Plan Elements 40 Regulation and Ethics Issues 45 Responding to Regulation and Ethics Issues 46 Assessing E-Marketing Effectiveness 47 Conclusion 50 References 51 List of Figures Figure 1 - Porter's Five Forces Analysis Framework 22 Figure 2 - Comparative Competitor Specifications 23 Figure 3 ' Online Advertising Tracking Sample 30 Figure 4 - Shop Floor Hierarchy 35 Figure 5 - Collaborative Marketplaces and E-Hubs 36 Figure 6 - Demand Management 37 Figure 7 - Transactional and Relationship Marketing 38 Figure 8 - Example of iPod Shuffle Messaging 39 Figure 9 - Adoption Curves for Various Media 40 Figure 10 ' Integration of the Product Lines 41 Figure 11 ' eCommerce Access 41 Figure 12 ' Uses for...
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...greatest inventors we had in modern times. Is iPod Apple’s quiet monopoly Prelude Apple’s iPod a revolutionary portable media player was launched in 2001. Being a striking piece of innovation with no comparable substitutes at that time it had a roaring success in worldwide. Till today, the quarterly sales of iPod worldwide continue to vary between 9 and 10 million ( [ Figure 1 ]). Even after the introduction of Microsoft’s Zune digital media player in 2006 and the existing players produced by companies like Creative, Sony, Samsung etc, the Apple iPod continues to hold a market share of approximately 80%. In this sense, one can be tempted to conclude that iPod can be said to be in a monopoly position because of its well established market dominance. Consequently from our previous deduction we may also conclude that Apple's iTunes Store1 has a monopolistic lock on digital music. The purpose of this paper is to analyze about how much of the above conclusion is valid from an economic point of view. Figure 1 iPod Sales Source: Wikipedia [1] iTunes is a proprietary digital media player computer application, used for playing and organizing digital music and video files. It can connect to the iTunes Store to purchase and download music, music videos, television shows, games etc. Is it truly a Monopoly? Apple’s majority market share in the portable personal media player market and in legal downloads in the iTunes Store often becomes a matter of comparison with...
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...innovation and music there is something magical about the name Apple. While ages ago our ancestors were bothered by the question of who came first a chicken or an egg, today the question is different. As the fame and success of Apple company and its products is increasing, the question one may rise is for example: what came first … the iPod or iTunes? In my paper I would like to present the financial report of the iTunes. To begin with I would like to give some background history of the product because even though the product itself is familiar to everyone, some may still wonder of its origin and principle function. As a matter of fact iTunes came first, even though it seems that we started hearing about the iPods much earlier. Before the iPod was released, Mac users had had the ‘iLife’ on their computers. The Ilife also included iTunes version 1.0 – however it looked rather different from the “modern” iPods or itunes. The main difference was that the iLife has a three-note icon and not the double green one which people are familiar with today. So, as we can see, the iTunes was around, for for the Mac only, of course, from January 2001. In April of 2003, a new version of iTunes (4.0) was released. That same year the iTunes Store – where you could legally buy and download music was officially launched. However, at that time the store was for the customers within the United States only, the rest of the world still had to wait. At last, in October 2003 the iTunes version 4.1 came...
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...the free encyclopedia Jump to: navigation, search [pic] |iPod | |[pic] | |The iPod line as of September 2010; from left to right: iPod shuffle, iPod | |nano, iPod classic, iPod touch. | |Developer |Apple Inc. | |Manufacturer |Foxconn (OEM)[1] | |Type |Portable Media Player (PMP) | |Retail availability |October 23, 2001 – present (first launched) | |Units sold |Over 300,000,000 worldwide as of October 2011 (see| | |chart below) | |CPU |Samsung ARM and Apple A4 | |Online services |iTunes Music Store, App Store, iCloud, iBooks, | | |MobileMe, Game Center | | |(online services available only on iPod touch) | iPod is a line of portable media players created and marketed by Apple Inc.. The product line-up consists of the hard drive-based iPod classic, the touchscreen iPod touch, the compact iPod nano and the ultra-compact iPod shuffle. iPod classic models store media on an internal hard drive, while all other models...
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...1. Apple did better in its iPod business than it did in its PC business. Explain why. Justify your answer through the application of industry analysis and other strategy concepts discussed in this course. In the early years, Apple focused on manufacturing low cost computers, working together with IBM, cooperating with Novell and Intel to create a new operating system that run on Intel platform. However, these projects had not achieved success until Steve Jobs became the CEO and refocused the original strategy for Apple. Jobs was able to create a competitive advantage for the company through restructuring and innovating software, hardware, marketing, digital asset management, retail strategy, and product differentiation. With these advantages, Apple was saved from bankruptcy and has gained a positive reputation, more customers, and large profit margin. The struggle of Apple incorporate in the PC industry was mostly due to the company’s inability to utilize Porter’s Five Forces. Porter’s Five Forces analysis is a powerful tool for understanding a company competitive position in the industry. The first three CEOs of Apple (Scully, Spindler, and Amelio) failed to address these forces and led the company to the edge of bankruptcy, which largely contribute to the reason why Apple’s PC industry suffer more than its iPod business. Intensity of Competition The present of several large PC manufacturers such as IBM, Dell, Hp, Acer, etc. substantially increases the intensity of competition...
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...Apple -Merging Technology, Business, Apple Computer Inc., back from near oblivion, is setting the pace in the digital world with innovation and creativity that has been missing from the company for the past 20 years. The introduction of the iPod, a brilliant merger of technology, business, and entertainment, catapulted Apple back into the mainstream. CAPITALIZING ON NEW TRENDS In 2000, Steve Jobs was fixated on developing video editing software for the Macintosh. But then he realized millions of people were using computers and CD burners to make audio CDs and to download digital songs called MP3s from illegal online services like Napster. Jobs was worried that he was looking in the wrong direction and had missed the MP3 bandwagon. Jobs moved fast. He began by purchasing SoundStep from Jeff Robbin, a 28- year-old software engineer and former Apple employee. SoundStep was developing software that simplified the importing and compression of MP3 songs. Robbin and a couple of other programmers began writing code from scratch and developed the first version of iTunes for the Mac in less than four months. This powerful and ingenious database could quickly sort tens of thousands of songs in a multitude of ways and find particular tracks in nanoseconds. Jobs next challenged the team to make iTunes portable. He envisioned a Walkman like player that could hold thousands of songs and be taken anywhere. The idea was to modify iTunes and build a tiny new system for what was basically...
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...Semester" "CiB_01/03" "Marketing" "The marketing-plan of Apple Computer" "entering the digital music revolution" "Course Lecturer: John F. Sykes" "Author: Urs Gaudenz" "Submitted: January 22nd 2004" " CONTENTS" "1 Introduction 4" "2 Methodology 4" "3 Digital Music Revolution 5" "4 SWOT Analysis 6" "4.1 Opportunities 6" "4.2 Threats 6" "4.3 Strengths 7" "4.4 Weaknesses 7" "5 The Market Entry 8" "5.1 The Market for Portable Music Players ...
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