“By leveraging on competitive advantage discuss how did Apple capitalized on the decisive trend by the growing demand of MP3 players?”
Apple capitalized the decisive trend by launching the iTunes online music store. This flexible, easy-to-use, and legal à la carte song downloads has allowed buyers to browse and listen songs freely, as well as downloading some individual song for a certain price. iTunes also broke one of the customer annoyance factor key, that is to purchase entire CD when they wanted only one or two songs, by enabling people to purchase the individual songs and pricing them more organized and affordable. iTunes also provide intuitive navigating, browsing functions and sound quality searching. Furthermore, number of added features usually found in the record shops, such as Best Hair Bands or Best Love Songs, staff favorites, celebrity play lists, and Billboard charts were included in the iTunes music editors. In addition, iTunes sound quality is considered the highest and the best in the business because its ability to encode songs which is superior to MP3s, even it burned at a very high data rate in a format called AAC. The iTunes Music Store allows users to burn songs onto iPods and CDs enough to satisfy music lovers easily but far too few to make professional piracy an issue. So, Apple invents the copyright protection that would not inconvenience users in order to protect recording companies. As the result, Apple receive 65 percent of the digitally downloaded songs buying price, thus benefits from the digital downloading craze financially. Today, iTunes is the largest music retailer in the US and has unlocked a blue ocean in digital music with its highly successful iPod player to increasing the attractiveness.
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