Strategic Analysis of Itunes

Topics: Apple Inc., ITunes Store, IPod Pages: 14 (3695 words) Published: September 9, 2012
Strategy Management
Music Industry Plan

Student course: Business Management
Module: Strategic Management
Name of lecturer:
Words: =3541
Submission date:  31/08/2012

Table Of Contents

1. Introduction

2. Strategic Position

2.1 The Music Industry

2.2 SWOT

2.3 Apple vision and values

2.4 Business and Social Responsibility

2.5 Market Segmentation

3 Strategic Purpose


3.2 The Environment

3.3 iTunes Life Cycle

4. Strategic Choices

4.1. Portfolio planning and analysis

4.2 Model Figure The Achilles

4.3 The Old ~Strategy

4.4 The Strategy

5. Conclusion




The first case: The failed Innovation
IBM was the first for creating the commercial, personal computer and hold the computer market. Apple tried to get hold a percentage of that market with the launch of Macintosh few years after, a similar personal computer with a great operating system, but was unable to meet the expected sales and Apple fell into a whirlpool for almost 15 years. Meanwhile other giants such as Microsoft, Dell, Google and Amazon apperead, Internet grew immensely and online piracy, such as downloading and streaming has become a lawsuit.

Second Case: The Innovation
On 1994,Steve Job, after leaving Apple Computers Inc. for a decade, returned to be the CEO and tried to make   Apple a brand that resembles the idea of “thinking differently”. With the launch of iMac on 1998, Apple took of the old black and grey colours of the computer and replaces them with different colours and instead of requiring a screen; the processor was actually in the screen. This change seemed to give particular attention to the youth culture and set what will be Apple next success. On 2001, Apple launched a piece of software called ITunes, which revolutionized the digital industry, starting from being an application that functions like a jukebox to develop gadgets such iPod, iPhone, iPad and Apple TV and become the most successful music store. In 10 years the ITunes grew, signing label deals for selling tracks instead of the whole album for a fraction of price. From 3 billion downloads recorded on 2007 to 16 Billion on 2011, this service became the market leader in online music services. Today, even after the death of their beloved leader, who brought change and gave an inspiring image to Apple business and brand, Apple still remains the most innovative and leads the technology industry with   award winning computers and stands best in its market position among the competitors.

Apple already has a strategic plan as major businesses in the world. However innovations in Apple seem to have disappeared and new ranges of products stop appearing like it use to do once. The two cases recalls leadership, vision execution and innovation, threats from competitors and competitive advantage. First attempt failed trying to penetrate in an unsaturated market where the recent pioneers held all the market. The second   had even a worse possible outcome, introducing a software that will act as a portal for buying music when the rest of the world was downloading music for free, and it actually worked, Apple penetrated various markets creating paths that leads to a next Apple product.

With competitive brands whom hold a larger share of market in different areas, such as Samsung, Microsoft, Google failing is not an option. . Shall they continue to invest and innovate on the digital music industry? On iTunes?


2.1 The Digital Music Industry
The continued rise of digital music is not just limited to MP3 purchasing and downloads. Streaming services such as Spotify...
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