Analysis of Audible.com Using Porter’s Five Forces Essay

Obviously, Apple is already the monster in tech industry, which leads the music downloads market. Amazon has only achieved the success in digital book downloads. Therefore, music downloading service is not the absolute advantage of this firm. That is why Amazon would likely to face to many challenges such as the stagnation of this service, which does not meet customer’s needs. Furthermore, the situation remains would make Amazon lose customers.

1. This strategy can provide customer with more choices and attract new customers to Amazon’s online retailing, through which Amazon’s customer base is spreading. Amazon originally only sold books, but now it also sells Kindle, MP3 and so on.

Ask anyone how they listen to music the answer will likely be through any means of easy access at an affordable cost. A study conducted by news outlet Nielsen 's Music 360 claimed, “Americans streamed 164 billion on-demand tracks across audio and video platforms in 2014”. The rapid increase in popularity music streaming platforms are experiencing leaves people wondering what that means for the music industry. When more consumers utilize the on-demand method of entertainment access, how does that translate to the artist being accessed? Astra Taylor contributes to this discussion in her book, “The People’s Platform: Taking Back Power and Culture in the Digital Age”. She lays criticism upon the idea of a more digitized

In order to fully understand the buyer power involved in thee American entertainment industry, a macro environmental perception has to be incorporated to understand its three primary levels that affect one another. But to try and understand how American entertainment industry relates to Oprah, we will focus primarily on viewers of visual media rather than music and other forms of entertainment.

Emusic. EMusic’s success results from much more than just selling music, it’s what and how they use technology to get their customer 's attention to meet their needs. Their relationship with their customers is based on a customer-focused marketing strategy. By trying and targeting their customers, eMusic use digital music service for independent-minded music collectors to satisfy online customer experiences. The thing that eMusic use to drives genuine value for their customer’s music is focusing on the independent-minded music lovers and collectors. The ‘Independents’ are defined by certain behaviors. Their musical tastes are more offbeat, as opposed to mainstream. They are also more passionate about music overall and are always actively seeking out music that’s new to them. 71% of the ‘Independents’ purchase digital music files online to own (Business Wire, 2011, p 1).

3. While music is largely considered and listened to base on cultural preference. For example, many Americans enjoy country music, which may not be cared for somewhere like Japan. The benefit of having a business like E-Sonic is that through the use of internet we can appeal different music to different cultures around the world, making us worldly demanded for business.

Comcast Corporation, based in Philadelphia, PA, with its bundling services operates as a media and technology with its two primary business, Comcast Cable and NBCUniversal. Comcast sprung into life in 1963 and went public in 1973 (James, 2014) It has acquired many corporation to take a firm stand where it is at today. Comcast Cable is nation’s largest video, high-speed Internet which has continuously increased its speed 13 times in last 13 years which now offers up to 505 Mbps to residential customers and up to 10 Gbps to businesses as well as phone services under XFINITY brand (Comcast, 2014). NBCUniversal operates in media, entertainment and sports cable network, the NBC and Telemundo broadcast networks, television production operations, television station groups, Universal Pictures and Universal Parks and Resorts (Yahoo Finance, 2015). Comcast also invests heavily in innovative businesses that represent the next generation of entertainment, communications and digital technology by partnering with entrepreneurs who have the vision, passion and tenacity to succeed (Comcast, 2015).

As a company in the streaming music Industry, it is essential to have a competitive advantage in order to stay in the run. Indeed, a big competition is established between all the companies which are using more or less the same business model. In the streaming music Industry, it is easier for clients to make implicit bargaining. Indeed, the more subscribers a company has, the more music labels will be in

Since April 2003, iTunes Music Store has permitted the consumer to purchase music and digital books over the Internet with success. By 2005 their shares increase significantly as a result of their tremendous success. Their product became a platform for the digital music business to explode into the industry it is today. This also made digital music affordable to the consumer who may have gone to illegal downloads in the past which in turn ensured that the music industry was getting paid for their product as well. The $0.99 cents per song download provided $0.70 cents to be paid to the record companies and the remainder ($0.29 cents) was Apple profit. By August 2005, some of the larger record companies felt that their product was

However, Amazon compete with them very well. Also, due to wide variety of products, their competitors ranges from retailers, merchandise retailers, online internet retailers,etc. In the late 1990's it provide competition to the bookselling industry and forced Barnes & Noble to launch their online website. Barnes and Noble offers books, DVDs, and CDs, which directly competes with Amazon.com's media segment. Amazon.com competes against all competitors on selection, convenience, and customer experience as well as price. Barnes & Noble had not been successful in online business and they decided to partner with Amazon.com

As discussed in the case study, the advertising and marketing strategy of Amazon have been focusing on how the products would gain interest from their target market and how they can be able to generate sales with their products. This is Amazon’s stronghold where it continues to yield strong sales revenue by leveraging off its excellent online shop in different locations, such as in UK and other country, strong brand name and excellent reputation among customers. Amazon has also been continuing to create affiliate websites to expand their business market among various consumers.

Customers in rural areas wouldn't have the access to go to a Bose store, but could still order the products online if they are interested in purchasing. Since the emergence of e-commerce, it is possible to reach all areas of the globe via web-interface. It is possible to not only reach a broader market, but to do so at a relatively low cost. The overhead costs from distribution are greatly reduced due to direct shipping from online sales.

One the one hand, the fertility of the industry opened the doors to corporations that sighted substantial growth potential. New entrants with big pockets such as Walmart could pose a certain threat to Netflix, by exploiting a playing card based on cost reduction. On the other hand, barriers to entry became relatively significant as established video rental retailers such as Netflix have the experience and the knowhow to market movies to people. In this industry, firms that do not have a technological advantage can’t compete. The best example is Netflix’s CineMatch program that offered personalized film recommendations based on customer’s rental patterns. This way, Netflix was able to better serve its subscribers. From a cost perspective, the movie rental industry requires high capital expenditures, and the major expenses are highly related to acquisitions of DVD library and investments in technology (exhibit 2 continued). Thus, we may say that entry is difficult in this industry as the competing firms have reputation, experience and recognizable brand names.

Buyers have other choices when it comes to an operating system, but not many. The Windows operating system faces competition from other software products offered by well-established companies, including Apple and Google, and from the Linux operating system. Since there are few choices, buyer power is low.

Amazon strives in a rapidly evolving and intensely competitive industry. Amazon competitors include publishers, vendors, distributors, manufacturers, physical world retailers and producers. Other competitors include media companies, web portals, shopping websites, online and mobile e-commerce sites, web search engines, and social networks, either directly or in collaboration with other retailers. Any company that provides e-commerce services, including website development, fulfillment, customer service, and payment processing is considered as a competitor by Amazon. Even Yahoo Inc. is also part of these services now with its new framework for providing easy e-commerce website development and payment processing services. Additional competitors include companies that provide information storage or computing services or products, services related to Cloud Computing, including infrastructure and other web services, companies that design, develop, market, or sell consumer electronics, telecommunication, and electronic devices. The competitive factors in retail businesses include selection, price, convenience, fast and reliable fulfillment. Additional competitive factors for Amazon seller and enterprise services include the quality, speed, and reliability of our services and tools. Many of the current