International customer behavior: How mp3 industries created and developed a new market?

Résumé du document

We prefer to study the MP3 player market as it is a novel and fast growing one. Flourished in 2004, the MP3 player replaced the old devices like walkman and disc man, thanks to the technological developments. In 1998, an unfamiliar brand introduced the first MP3 player and it was only in 2001 that the most reliable and well known iPod was launched by Apple. This brand has opened a new market and created a new need.

The new device with high storage capacity, allows hearing music anywhere at any time. In fact, the device changed the customer behaviour and modified their choice process. In order to consider customers' opinion competitors in the MP3 players market their products and strategy. In this study, we will observe the consumer behaviour based on three main targets and we will analyse how the companies operate and maintain their core competencies.

Extraits

[...] Compared to the previous year at the same time, the gross profit margin was down from International sales accounted for 44% of the quarter's revenue. Using the account method, you can find the weight of each Apple product in its turnover in 2008. For the first time iPhone product is before Mac computer[7]. Apple uses the umbrella strategy: all its products are sold under the same Apple brand. Apple is established as being-driven and innovative while offering many types of products. [...]

[...] In that sense, mp3 player is a way of reattaching itself to the past. Search model Everyone uses a high external search (since they are not aware of the trend concerning new technologies). They use the advice of professionals, friends or family (maybe their children who are much more aware of technologies). Their search are deliberate search, they actively seek information and take the time to compare all the features of different mp3 players. In that way they are considered as rational perspective (they calmly seek as much information as possible, weighing the pros and cons). [...]

[...] The promotional campaign is based on its slogan “Think Different”. It presents Apple as a different and special brand in the High-tech world. It does not put ahead the Bits or Megabits numbers but also its values which mean being free thinking differently from others. Thus, the iPod promotion shows a break in the digital music world. So the main communication way is “Music Celebration” with a vision of “Digital music for everyone”. To illustrate it, the advertisement chosen, famous black body with white earphones on sharp bottom, were simple but with a well reception from the target. [...]

[...] Vertical integration: Because the iPod and all its accessories are created by Apple, developers have no supported way to add features to the software such as decoding of additional formats. Pressure to increase price: There is a pressure on Apple to increase its downloadable music files at its iTunes store signature. If it is too expensive, people will find other ways to pay less. Decreased Research and Development: Part of Apple's recent financial success has stemmed from less spending on R&D. [...]

[...] The entrance of other competitors allows the leader to perform better in its job in order to keep its market shares. As a result of the development of technology, most of the competitors trend to propose innovations in products such as TV and movie from internet. Threats Currently there is only one major threat in the MP3 market, which is the inclusion of MP3 players in the mobile phones. With the incorporated MP3 players in the mobile phones, the MP3 player might become obsolete. [...]