Strategic Analysis of Itunes Essay

3699 Words15 Pages
Strategy Management Music Industry Plan Student course: Business Management Module: Strategic Management Name of lecturer: Words: =3541 Submission date: 31/08/2012 Table Of Contents 1. Introduction 2. Strategic Position 2.1 The Music Industry 2.2 SWOT 2.3 Apple vision and values 2.4 Business and Social Responsibility 2.5 Market Segmentation 3 Strategic Purpose 3.1 THREATS AND BARGAING Powers 3.2 The Environment 3.3 iTunes Life Cycle 4. Strategic Choices 4.1. Portfolio planning and analysis 4.2 Model Figure The Achilles…show more content…
Digital music is not to everybody's taste. Exclusive consumer research for this report reveals that four in ten consumers like having a permanent physical copy of their purchase. Despite this, however, CD sales are slowing down year on year and revenue consistently fell between 2006 and 2011. It seems likely that as digital content becomes the norm, with connected devices spreading throughout the various strata of consumer demographics, physical purchases may be reserved for special favourite bands, where enjoyment of the music is secondary to engaging with the merchandise and the more general ‘fan experience’. Between 2007 and 2012, music retailers have continued to invest in digital channels to market, introducing cloud storage access and streaming retail models The lower cost of digital music and the increasing popularity of streaming services mean that record labels may have to resign themselves to a future in which the inflated pre-digital revenue streams they are trying to regain are firmly a thing of the past. A major problem in this industry is the piracy war specially with illegal downloads.(See Appendix) . Go-Goble says that p2p downloads are costing the music industry over 12.5 Bilion $ and the industry is trying its best to promote
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