“Apple Computer, Inc.: Think Different, Think Online Music”

Topics: Stakeholder analysis, Marketing, Brand management Pages: 7 (1875 words) Published: July 21, 2010
1.4 C’s Stakeholder Analysis
Based on the background of “the era of the Digital lifestyle”, iTunes 3 target customers are; StakeholderStake in the projectPotential impact on ProjectGrowth percentage of online distributionPerceived attitudes and/or risks 12 – 24 yearsDownloaded an average of 12 tunes per month, housing libraries between 25 to more than 300,000 songs from the internetHigh59%Unlimited library of songs and videos by genre, artist and album •Software design is attractive and easy to use

Sound in industry standard Dolby Advanced Audio, allowing CD quality sound •Better data compression allowing users to store more files more quickly •There was no subscription fee but songs were not free

The teens and children felt exploited by the escalating prices of music 25 – 34 yearsDownloaded at least one music file from the internetHigh43% 35 – 54 yearsDownloaded at least one music file from the internetMedium24%

Online music was growing to be the best phenomena in the United States. Statistics show that by July 2003, 65 million people in the USA had downloaded a song from the internet. The growth rate by December 2002 was at 26% and by less than 5 months it had grown to more than 30%. Most consumers of this online music were children and teens. They felt exploited by the escalating prices of music from stores and sort to look for other free or cheaper means to own the music. (They do not have a dependable income). Today’s music industry targets the younger generation. They like to be ‘down with the latest releases (both audio and video)’, ‘the newest kid on the block’ and to be known to own it. ITunes interface as shown in exhibit 7; have the top albums, top songs, latest releases and favourites and a free 30 second full quality preview of any song. This will seize the tedious search on the internet, but have a one stop shop for all their preferences. Based on this, the target segment 12 – 24 years was the most valuable. •Company

ITunes fit Apple’s brand and capabilities because
Apple’s brand already speaks for itself. It is associated with high level innovative products with end user capabilities from the time it began. Apple has for years tried to have products that are exclusive to Mac Computers. Although the market segment does not allow them to do that 100%, they had to have alternative similar products for Windows PC users. Apple always developed products that would be used first by Mac users, to dwell in the amazing features and resources. They were loyal to their customers. ITunes was launched into the already existing market that Apple carried. Its vision was to be a major player in the digital integration. At the time of its launch, iTunes came with the best services and features to all its competitions. Apple continuous to maintain a high standard of its products. •Competitors

iTunes CompetitorsWeaknessesOpportunities for iTunesStrengthsThreats for iTunes Peer to Peer Networks-Quality of downloads was poor
-No guarantee of the file download was a full version
-No guarantee of correct song or correct title
-Trading of copyrighted files was technically illegal
-RIAA strategy of legally attacking individuals made some reconsider using these services -The music for some networks were on rental basis-Provided CD quality sounds and better data compression -Guarantee of full version download and legal activities because the five largest music publishers licensed songs to iTunes. -A ready market segment

-The user owns the music
-Networks were free, containing an unlimited library of songs and videos -Easy burning into CDs and MP3 players
-Software design is easy to use and attractive
-One can own songs in 5 minutes
-Can create musical anthologies
-Songs are stored directly on the Hard disk of all PC users, not limited to Mac users only.-Downloads costs about the same as a CD in the store, this can discourage...
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