Strategic Analysis of Apple and its iTunes Music Store Using Five Forces Model

Résumé du document

The Apple's Computer INC history started in 1976 with the first launch of its computer: Apple I. Nowadays, Apple is known all over the world for its computers Macintosh. Apple represents one of actor in the computer industry. In April 2003, Apple showed innovation with the opening of an on-line music shop: iTunes Music Store. Today, iTunes is a revolutionary concept which modifies all behavior of consumers. For the future, this concept will to produce music and directly consumed.

To resume, iTunes is a service of purchases digital contents on Internet, mainly purchase of on-line music. With this process, iTunes Music Store offers to the Internet user a large music choice while protecting the copyright of artists. iTunes Music Store is a real software and not one network of downloading.

Extraits

[...] THREAT OF SUBSTITUTE PRODUCTS OR SERVICES iTunes would like to maintain its leader position in the online music market but there are a lot of competitors. They want to take the iTune's position. We have 3 types of competitors: first, the peer-to-peer network which is very used by teenagers (illegal download), then we have traditional shops (record shops), and finally others companies which offer to download music like Microsoft, BuyMusic.com, AOL,Yahoo, Amazon To conclude, we can say that the threat of substitute services is very high for iTunes Music Store. [...]

[...] Strategic Analysis of Apple and its iTunes Music Store Using Five Forces Model Brief presentation about Apple the company which developed iTunes Music Store and its industry. The Apple's Computer INC history started in 1976 with the first launch of its computer: Apple I. Nowadays, Apple is known all over the world for its computers Macintosh. Apple represents one of actor in the computer industry. Strategic segmentation of Apple Company Itunes Music Store: the Apple's revolution In April 2003, Apple showed innovation with the opening of an on-line music shop: iTunes Music Store. [...]

[...] With this process, iTunes Music Store offers to the Internet user a large music choice while protecting the copyright of artists. iTunes Music Store is a real software and not one network of downloading. We can recap the market's environment with a brief SWOT analysis. STRENGHTS: brand identity, notoriety, high quality, iTunes Music Store is the leader for the music online WEAKNESSES: problem of compatibility OPPORTUNITIES: high technology, quality, growth market, innovation and pioneer THREATS: high concurrence, peer to peer Five Forces Model by Michael Porter MODERATE MODERATE LOW HIGH THREAT OF ENTRY: In this industry, new entrants can't adopt one economy of scale strategy because costs are very important (logistics, network Economies of scale refer to reduce costs of production. [...]

[...] Moreover, the online music is a growth industry which will develop during the next year. Now, iTunes Music Store must to operate and reinforce its strategic aims. Because of the high competitive level, iTunes Music Store must to develop a specific strategy. Recommendations: iTunes can develop its music catalog (with innovation, & marketing) and its design; he should offer its services to the other countries (like Japan, China, Australia). iTunes must stay vigilant in order to keep its position. Apple must to innovate again and be careful about its compatibly too. [...]