...Managerial Decision: iTunes Music Pricing by HCM-540, MBOL5, Health Care Organization Instructor: Saint Leo University Distance Learning November 10, 2013 Abstract Apples’s Itunes music store came upon the music industry in 2003. It quickly became supreme within the music industry. The iPod, Apple’s MP3 players, and iTunes software were all interfacing, making it one of the more popular technology favorites among consumers. At odds with iTunes were the music companies crying foul over infringement and pricing. Buying overpriced CDs were quickly becoming a thing of the past. Music had been illegally accessed through peer-to-peer file sharing networks. With the recognition that music was being stolen, other ways were being developed by those with a stake in earning a profit. The industry had to decide if it should allow piracy to continue of develop variable pricing alternatives. This paper takes a look at alternative pricing in the case study, iTunes Music Pricing. At the conclusion, readers will have a better understanding of variable pricing policies. Introduction Variable pricing represents a concept use, by Apple, to describe the structure of pricing to advertise downloadable data. Variable pricing involves the different cost of a product for based on the preferences of the producers. This varies from the model of flat pricing, where one fixed price is applied to those items that are the same. Content of purchased songs, all cost one price and all movies...
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...Decisions: iTunes Music Pricing 1. Provide an argument for why a variable pricing policy might increase the sales revenue from Apple’s Music Store. The music industry is big business and for many years, consumers have obtained music in many ways other than purchases, which is known as piracy. Today, consumers can purchase music through file-swapping networks, thus leading to a decline in the music industry’s total revenue. In 2003, after agreement with individual music companies, Apple Inc. gave customers the opportunity to purchase and download digital music and audio books through Apple’s iTunes Music Store awaiting at least some revenue from downloaded music (Brickley, Smith, & Zimmerman, 2009). At that time, Apple’s managerial staff set the product price at $.99 per song for all digital music. In 2005, the Music Store sales soared, thus encouraging record companies to ask for a more variable pricing policy. The record companies requested the price for popular songs to increase in price and the older songs to drop in price (Brickley, Smith, & Zimmerman, 2009). In 2009, after negotiations between Apple and the record companies, Phil Schiller, Apple’s senior vice president, announced Apple’s iTunes store would offer music at three prices - $.69, $.99 and $1.29 (Breen, 2009). The variable pricing policy went in effect April 2009 at Apple’s iTunes Music Store (Breen, 2009) and not long after, almost all top songs went from $.99 to $1.29. It was unclear how the price change...
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...promotion activities in Music Retailing (Project towards partial fulfilment of the Mid-Term in the subject of Retail Management) Submitted to :- Submitted by :- Dr. Archi Mathur, Akash Paul Lakra Associate Professor Roll No. 766 Faculty of Management studies UG- VI Semester B.B.A.(Hons.) LLB. (Hons.) National Law University, Jodhpur Winter Session (January-May 2013) Acknowledgment First and foremost I would like to thank my teacher Dr. Archi Mathur who has greatly helped me in choosing this interesting topic. Secondly I would like to thank my University, National Law University, Jodhpur, for the infrastructural and allied support services without which making this project would have proved to be really difficult...
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...Apple has toppled Google as the world's most valuable brand Marketing Management – Assignment Case Study Report CONTENTS CASE DESCRIPTION ...................................................................................................................................... - 3 INTRODUCTION ............................................................................................................................................. - 4 HISTORY .......................................................................................................................................................... - 5 CREDIBILITY CHECK .................................................................................................................................... - 6 HOW APPLE ACHIEVED IT? ......................................................................................................................... - 7 Constantly Improving Products ..................................................................................................................... - 7 Creating New Products .................................................................................................................................. - 7 High Margins ................................................................................................................................................. - 8 Distribution .....................................................................................................
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...King Graduate School, Monroe College Master in Business Administration MG 800: Strategic Management Title: Apple Inc. in 2012 Case Study 10/03/2015 Table of contents 1. Introduction…………………………………………………………………………03 2. The Mission, Vision, and Values of Apple, Inc……………………………………03 3. External Analysis……………………………………………………………………03 4. Internal Analysis……………………………………………………………………03 5. Strategy Analysis……………………………………………………………………08 6. Conclusion………………………………………………………………………….12 7. Recommendations………………………………………………………………….12 References………………………………………………………………………….14 Introduction According to Mahsmr (2012), Apple Inc. started in 1976 as an American manufacturer of personal computers, computer software and peripherals. Originally, it was Apple Computer Inc. for 30 years, and its principal office is based in Cupertino, California. It is the very first thriving personal computer firm that has started the popularized usage of the graphical interface. During its starting years, Steve Jobs and Wozniak were responsible for the introduction of the company first innovation that was put on sale. The first personal computer product was sold then, after which, the two founders continued to produce more and more innovative personal computers. However, not all years were lucky years for Apple Inc, there were also times that the company experienced some financial struggles that led to several changes in the management. In 1997, Steve Jobs took over the...
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...Can Apple successfully defend its position as an innovative powerhouse while expanding its portfolio to include media and software as well as attract new consumers? Apple Computer, Inc. Case Study Sheila Attipoe Rosemary Oxford On April 1, 1976, Steve Jobs and Stephen Wozniak began the partnership that would eventually become Apple Computer in Cupertino, California. “Apple Computer, Inc. is an American multinational corporation that designs and sells consumer electronics, computer software, and personal computers. The company’s best-known hardware products are the Macintosh line of computers, the iPod, the iPhone and the iPad. Its software includes the Mac OS X operating system; the iTunes media browser; the iLife suite of multimedia and creativity software; the iWork suite of productivity software; Aperture, a professional photography package; Final Cut Studio, a suite of professional audio and film-industry software products; Logic Studio, a suite of music production tools, the Safari web browser; and iOS, a mobile operating system” (Wikipedia). Some of Apple’s competitors include IBM, Dell, and HP. The first computer, the Apple I, was hand-built by Stephen Wozniak in the garage of Steve Jobs’s parents. It was known as the “kit computer” the original Apple consisted merely of a circuit board and did not even have an exterior casing. The Apple I did not sell well and this lead to the introduction of the Apple II on April 16, 1977. This helped increase the...
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...SYNOPTIC 1 TITLE: Case Study: APPLE (Apple’s Profitable but risky Strategy) Prepared by: LAM SOON LIANG BBAMGT 00009666 Date of Submission: 8th December 2014 Question 1: With reference to the case study, provide one example with a paragraph of not more than 5 lines, which clearly illustrates a link between topics or concepts drawn from at least 2 modules you studied. Launched in late 2001, the iPod was followed by the iTunes Music Store in 2003 in the USA and 2004 in the Europe – the Music Store being a most important and innovatory development. iTunes was essentially an agreement with the world’s five leading record companies to allow legal downloading of music tracks using the internet for 99 cents each. This was a major coup for Apple – it had persuaded the record companies to adopt a different approach to the problem of music piracy. With the slogan "Thinnovation" (2008), apple has become the world's most valuable company and one of the world's most valuable brands. Apple has brought three main marketing strategies that help the company to maintain their competitive advantage which can assemble to empathy, focus, and impute (Christine Moorman, 2008). Innovative Competitive strategy is a tool that companies use to achieve competitive advantages which consists of three main strategy low-price, differentiation and focus (Maria, 2012). Low-price strategy focuses on providing the same value as what competitors do with lower price, in the contrast, the differentiation...
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...how good an item is. Value is driven by personal needs and desires. Customer value is the value a specific exchange has for the customer as opposed to for the company (White, 2012). Marketing function determines customer value because it refers to the value of an item the customer receives. A marketer’s job is to develop an offering and to price it in such a way that its value attracts customers, yet it still makes a profit. This paper will introduce and market the product iTunes using the STP approach, discuss major environmental facts and trends in China, and contain a marketing plan for iTunes using the four p’s of marketing. A product that is sold in the United States and has sales opportunities in China is the intangible service iTunes from Apple. ITunes is a store in the form of an app that can be downloaded to ay electronic device where you can purchase music, games, and apps. This product can be purchased instantly over the internet with a debit card or iTunes gift card. This product is inexpensive and reliable with instant service. ITunes is a whole digital hub concept and people are buying into it. The target market for iTunes in the United States are individuals from eighteen years of age to forty-nine years...
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...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 along and for the first time it was availabe for Windows based computers as well. The year 2004 was marked by the...
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...Marketing Strategy of Apple Inc and its Effectiveness ukessays.com /essays/marketing/marketing-strategy-of-apple-inc-and-its-effectiveness-marketingessay.php Carrying out this research on a strong brand image like Apple Inc. contributes to further and wider understandings about marketing strategies, even for other organizations, such as: To study the needs, wants and expectations of the various customers from different market segments. To find out reactions of customers to products of the company. To evaluate company's sales promotion measures for suitable adjustment and improvements. To study current marketing problems and opportunities for suitable follow up. To suggest introduction of new products, modification of existing products. To study marketing competition, channel of distribution and pricing for suitable changes if necessary. To find methods for making the product popular and raising its goodwill and marketing reputation. Furthermore, from a student’s viewpoint, it helps to improve research, analytical and presentation skills, rather than just studying from the assigned text books and preparing for CAT and ACCA exams for the past three years. Research Question How effective was the marketing mix strategies used by Apple Inc. to maximise their overall performance and gaining market share comparing the financial performance for year 2009 and year 2010? 2.0) Company Background Apple Inc. is a California corporation founded in 1977, selling a range of personal computers...
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...Case Study: iPod to IPad: innovation and entrepreneurship at Apple Q1)What are the market segments indentified by Apple and their relevance over the years? Apple identified four key segments within the market: -Business, -Creative Professionals, -Education , -High end cosumers In 2000, 75% of the sales were to the traditional business and professional markets. The first ipod was launched in 2001 later followed by a 10 GB version. In 2003, the ITunes Music Store opened. Access to music and downloads became easier. By 2009, the situation had reversed with 60% of sales in the consumer markets of education, students and the broader consumer market. The search for consumer product in 2001 was the cause of this dramatic turn around. Prior to the launch of Ipod, Apple wanted to enter the market for consumer digital devices. They found the market for Digital MP3 players was relatively under developed with no big players involved and significant design flaws in the products on offer. Apple chose music on the move since the market potential was huge and no one had got the right recipe. Price was no barrier to Apple. By tradition the company tended to follow a premium price entry model. They understood that the Key success factors in the market were design, size, capacity, battery life, software and download facility. Apple were looking for creative professionals to satisfy the above criteria and seized the opportunity to hire Fadell who had ideas for a brand new MP3...
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...Cast study of Apple Company Apple is undoubtedly the world's largest and most innovative companies. Their products can always call attention from all over the world, which can promote the company's rapid growth. However, as the market become more mature and there is more competition involved, Apple’s investors should not only pay attention to the company’s opportunities, but also guard the possible threat. Now, the largest threat which Apple is facing is how to develop itself after the Steve Jobs era. Facing this challenge, the best practice for Apple is realizing the pressure and keeping in step with the times. People generally believe that Steve Jobs is the foundation and the driving force of Apple's innovation culture. It is Jobs who bring Apple from the brink of collapse to a global industry leader and one of the most respected brands. From Apple's perspective, we believe that the company's future product blueprint has been basically established within the following two or three years. So the death of Steve Jobs will not affect short-term operations. The main longer-term challenge for Apple depends on whether it can continue to foster the same culture of innovation and the policy of consumer-oriented development approach. Culture is one of the buzzwords of business school, although it cannot be measured, designed or institutionalized. However, we all know that a strong culture always plays a huge role to the company's success and brand recognition. Over the years, Steve...
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...result of their efforts, Apple Computers was launched and the Macintosh computer System or Macs were introduced to the world. Although MACs did not necessarily make a splash in the market that the trio anticipated, APPLE Computers found success with a newly designed MP3 player that ultimately revolutionized the portable music business. The IPod was introduced in 2001. As a result of its success and the implementation of the IPhone and IPad, in 2007 the company dropped “Computer” from its name and now simply goes by APPLE. Mission Statement Apple, Inc. mission is to “design MACs, the best personal computers in the world, along with OS X, ILife, IWork and professional software. Apple leads the digital music revolution with its IPods and ITunes online store. Apples has reinvented the mobile phone with its revolutionary IPhone and App Store, and has recently introduced IPad 2 which is defining the future of mobile media and computing devices” (Investor Relations, 2011). According to a recent report posted by CNN business, Apple is posed to take over EXXON as the number one business in the world (CNN, 2009). Based on a S.W.O.T. (strengths, weaknesses, opportunities and threats) analysis, Apple has an opportunity to do just that if they can continue to do the things that have made them a success; get stronger in the areas where they are weak; take advantage of opportunities as they present themselves; and mitigate any threat to the company and its brand. STRENGTH Apple...
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...sharing services like Napster, Gnutella, and Scour thus seeing the major music labels taking almost anyone that is into digital music to court. The potential fear that led to the court actions center on how the music labels can possibly make any money if music becomes available in digital format for free. The question therefore is that if music is available free of cost, why would anyone pay for it? Could Napster conveniently say that it is indeed the first technology development to provide access to music content for free? Purpose of Study: This paper establishes the following: the industry conditions that led to the revolution in audio distribution while identifying which stakeholders are benefiting most or least; the reasons that made the music stores to attract many subscribers and what if any the record labels should have done differently; determine, if Apple allows its iPods to play non-iTunes songs, how long the success of iPods and iTunes endures; why musicians should sign away their copyright privileges to their songs through creative commons; and how podcasting would likely impact the appropriability of recorded music, radio broadcasting or other types of audio transmission. Overview of the Paper In 1991, Fraunhofer IIS of Germany invented the MP3 format. The MP3 format as stated by Shilling (2010) is an innovative algorithm, “that would set in motion a revolution in how music was distributed”, and that compressed digital songs to about 1/10th the of the original...
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...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 along and for the first time it was availabe for Windows based computers as well. The year 2004 was marked by the opening of iTunes Music Store in...
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