Itunes Analysis

Topics: Music industry, EMI, ITunes Store Pages: 30 (10136 words) Published: December 30, 2012
Case report
By: Pentinga, Steg & de Vries

Case 1
Emergent strategy: who will stop Apple’s dominance of the music delivery business?


In this report we “chessmind business” will tell you a bit more about iTunes a part of Apple inc. in this rapport we will formulate a strategy iTunes can follow for the next three to five years.

In this report you will read parts about, the development of iTunes so far, internal and external analysis of iTunes and the advised strategy for iTunes. By looking at the past, new strategies can be formulated. And after evaluating the formulated strategies by looking at the pro’s and con’s of all the strategies. The best strategy for iTunes is chosen.

We hope you enjoy reading this report and wish you good luck with implementing the new strategy.


Chessmind business

Margreet Steg
Vera Pentinga
Antje de Vries

Management summary

Chapter 1: Summary of the case
Chapter one contains the summary of the case in which will be explained what the mayor issues are for this case. iTunes is here defined as the main product in where the future will be discussed and its position in the nowadays music industry.

Chapter 2: the development of iTunes’ strategy
The problem statement is defined in this chapter. Questions such as “what can iTunes do to stay ahead of their competitors?” and “in what way are the music consuming methods changing?” are being introduced.

Chapter 3: Internal Analysis
The internal analysis of iTunes takes a look at the value creation. The question “what is the value of iTunes for the consumers?” is being discussed and the outcomes will be applied into the value chain. The value chain explains resources, competencies and ones where iTunes lack. Also the competitive advantage of iTunes is being discussed.

Chapter 4: External Analysis
To give a good view on the macro-environment, the PESTEL is being used which is a very often used method for analysing the macro environment. The PESTEL contains the political, economic, social, technological, environmental and legal factors. Furthermore, Porter’s Five Forces Model is being used to understand where the power lies for iTunes. It will help to understand the strengths for the SWOT in chapter 5.

Chapter 5: The SWOT-Analysis
For the SWOT-Analysis the strengths, weaknesses, opportunities and threats are the outcomes from previous chapters.

Chapter 6: TOWS-Matrix
The next step for this analysis is to think about the options that could be pursued. The external opportunities and threats are matched with internal strengths and weaknesses. The possible strategy’s are shared as the outcome of the TOWS. Several strategy’s are being discussed but the most suitable strategy is the combination of WT, which is because more streaming services are available, iTunes should work on the availability of their products. Since iTunes can only be used on mobile devices from Apple itself, they should make it available to other devices to expand their market.


Table of contents

IntroductionP. 2
Management summaryP. 3
1. Summary of the caseP. 5
2. The development of iTunes strategyP. 6
2.1. General challenges of iTunesP. 6
2.2. Problem statementP. 6
3. Internal analysisP. 7
3.1. iTunes and its value for consumersP. 7
3.2. Which resources and competencies does iTunes has P. 9 3.3. The competitive advantage into the four building blocksP. 10 4. External analysisP. 11
4.1. Macro environmentP. 11
4.2. Porters Five Forces ModelP. 15
5. The SWOT-AnalysisP. 16
6. The TOWS-MatrixP. 18
ConclusionP. 20
BibliographyP. 21

1. Summary of the case

Since the upcoming of home music, it has undergone several mayor changes. Home music has gone...
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