Itunes Analysis

10125 Words41 Pages
------------------------------------------------- Case report ------------------------------------------------- ITunes By: Pentinga, Steg & de Vries Case 1 Emergent strategy: who will stop Apple’s dominance of the music delivery business? Introduction In this report we “chessmind business” will tell you a bit more about iTunes a part of Apple inc. in this rapport we will formulate a strategy iTunes can follow for the next three to five years. In this report you will read parts about, the development of iTunes so far, internal and external analysis of iTunes and the advised strategy for iTunes. By looking at the past, new strategies can be formulated. And after evaluating the formulated strategies by looking at the pro’s…show more content…
Now also the capacity and the speed of the portable devices will be increased. Because of these changes, recorded music and delivery music companies all over the world need to rethink their strategies. The three main areas they have to think of are; *Recorded music from the traditional record companies *Mobile telephones (a new revolution music delivery) *Broadband and the web (potential for new music delivery) In 2007 there were four major music producers who owned together 75% of the entire market. And in spite of the amount they owned of the market, they still all had trouble with their profitability. The fact that they had profit problems seemed really surprising. But the reason was really clear. One of the main reasons the companies were losing money, was because selling music via the Internet became more popular than buying CDs in a store. Furthermore, the profit margins of cd sails were higher than those of the online sails. The four big companies have three mayor competitive advantages. Those advantages are, recording contracts, high promotional barriers and record sales through retail stores. To make more money, the record companies needed to find other ways to add value. For example they start interfering with concerts of their artists. They make money from promotion, concerts, merchandise and other forms of branding. Basically; the music company starts to work on other parts of the industry and extends their value chain. Moreover, one of
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