Cis-500 Midterm

Topics: ITunes Store, IPhone, Apple Inc. Pages: 7 (2266 words) Published: November 13, 2011
1.50 Points
Choose one of the opening cases from chapter 1, 2, 3, 4, or 5. Answer the opening case questions found at the end of section 1 and section 2 for the corresponding chapter. Be sure to list the chapter and the title of the case in your answer.

Chapter 1 Apple-Merging Technology, Business, and Entertainment

1.What might have happened to Apple if its top executives had not supported investment in iPods? Apple was lacking creativity and innovation before the iPod came along. Due to Porters’ Five Forces had they not introduced the iPod; rivalry amongst competitors would have allowed for Microsoft to introduce Zune first, and apple would not have the reputation it has now for portable music. The threat of new entrants could have also allowed for new companies to invent similar devices.

2.Formulate a strategy for how Apple can use efficiency IT metrics to improve business. Efficiency IT metrics are based on the technology itself. Apple can improve its business by maintaining constant website availability and by keeping an optimal thoughput performance. The apple website is somewhat interactive, however most; if not all purchases are made thru iTunes. Apple can effectively improve efficiency by measuring web traffic, transaction speed and information accuracy on both Websites. This will ensure efficiency across the board. 3.Formulate a strategy for how Apple can use effectiveness IT metrics to improve its business. Effectiveness IT metrics measures how IT affects specific aspects of the business world. Information Week, the business value of technology, states that some of the key elements used to improve problems with some of the Effectiveness IT Metrics are customer satisfaction, conversion rates, financial, missed opportunities, drop outs, and the ultimate test. Apple could launch a survey in an email blast to customers to measure customer satisfaction, drop-outs on new apps; the ultimate case could also be a part of the survey to find out if they would recommend the product to a friend. Financial effectiveness can be measured based on revenue exceeding operating cost. Apple could also launch an internal survey for its customers to measure customer interactions, and possible missed opportunities based on call or customer volume in the store.

4.Why would it be unethical for Apple to sell its iTunes customer information to other businesses? Information is defined as date converted into a meaningful and useful context Baltzan Phillips (2009). Apple has a vast amount of information on all of its customers; this helps Apple to gain a comprehensive knowledge of factors affecting its business. This information in invaluable to the company, Apple has a great reputation for being a name that user’s can trust. If they begin to sell user’s information it violate their user’s trust and simultaneously damage their reputation. 5.Evaluate the effects on Apple’s business if it failed to secure its customer information and all of it was accidentally posted to an anonymous website? The competitor’s of Apple such as Zune and many others have the technology but the one thing that is missing is the information needed to capture the Apple audience. Apple uses business intelligence which is defined as applications and technologies that are used to gather, provide access to and analyze data and information to support decision-making efforts Baltzan and Phillips (2009). From a business strategy point of view security leads to increase in effectiveness metrics. The information Apple has o its customer base is valuable to their bottom line and in my opinion if the information fell into the wrong hands it could prove very detrimental to Apple.

6.Did Apple gain a competitive advantage from its decision to invest in an online music business? A competitive advantage is a product or service that an organization’s customers place a greater value on than similar offerings from a competitor Baltzan and...
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