ITunes

INTUNES IN BRAZIL THE ITUNES ONLINE MUSIC STORE FEASIBILITY STUDY TABLE OF CONTENTS TITLE PAGE 1 TABLE OF CONTENTS 2 INTRODUCTION 3 MACRO ENVIRONMENTAL FACTORS 7 MARKETING MIX 5 HOFSTEDE MODEL ANALYSIS 6 BEHAVIORIAL IMPLICAITONS 7 CONCLUSION 8 INTRODUCTION The landscape of music industry sales has changed within the last 5 years with the changing technology

established on Apr 1, 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. Its best-known hardware products are the Mac line of computers, the iPod media player, the iPhone smartphone, and the iPad tablet computer. Its online services include iCloud, iTunes Store, and App Store. Apple 's consumer software includes the OS X and iOS operating systems. Its products are sold in more than 120 countries in which India, China, US and European countries like Germany, Italy, France, Spain etc are major user of

while also lowering revenue. The most popular and well-known of these services is iTunes, the digital music market of Apple. iTunes’ business was one of the first to bring large amounts of easily accessible music to the general public through digital means, revolutionizing music retail. Adrian Covert, of CNNMoney, discusses the prolific effects of iTunes on the music industry, stating, “Since the introduction the iTunes Music Store on April 28, 2003, music sales have plummeted in the United States

Podcasts-The iTunes Podcast Directory features thousands of free podcasts, or radio-style shows, including favorites from such big names as ABC News, Adam Curry, ESPN, KCRW, and WGBH. Audiobooks-The digital shelves of the iTunes Music Store are stocked with more than 11,000 audiobooks, including such exclusives as the entire Harry Potter series. Photos-With storage for

iTunes was a disadvantage for the competitors.After iPod, other companies, such asSamsung, SanDisk and Creative came with their products, but they had market of 10% and below. The iPod is not just an MP3 player, it encompasses many good ideas as it got benefited

Due to the transaction costs being lower through online channels allows for companies to offer individual products that were previously only sold as part of bundles. The advent of online stores such as Apple’s iTunes music meant music was now sold in the form of individual tracks as opposed to the previous model of the singular album. The ready availability form of singles, raises the question as to whether a number of songs on an album still matters, does it mean the track listing becomes a thing

innovations. In the personal computer industry, it created MacBooks in 2009. In the personal media player industry Apple created the iPod. This followed with the creation of the itunes store, which catapulted iPod sales. This was due to the fact that consumers could download and store music, movies, and applications and use iTunes in conjunction with the iPod. In 2007, Apple entered the smartphone industry by launching the iPhone. Finally, in 2010, Apple introduced the iPad (Thompson, Peteraf, Gamble

corporation that designs and markets consumer electronics, computer software, and personal computers. The company's best-known hardware products include the iMac, the iPod, the iPhone and the iPad. Apple software includes the Mac OS X operating system; the iTunes media browser; the iLife suite of multimedia and creativity software; the iWork suite of productivity software. It was established on April 1, 1976 in Cupertino, California, and incorporated January 3, 1977, the company was previously named Apple

increased sales by letting the consumers experience their software and products first hand. Apple placed the ads in popular fashion magazines as opposed to just general computer publications. Through their initiatives of the “digital hub” comprising of iTunes, iPhoto, iWeb, they have been successful in practicing the strategy of bundling. Using this approach they create a perception of providing consumers the value for their money; however they extract the consumer surplus which results in positive

iPod. However, the greatest challenge that the competitors had to face was the introduction of iTunes store. The two features that brought comparative advantage were iTunes desktop software which synchronized iPods with computers and iTunes music store. With these two features Apple became the entertainment hub. The launch of iTunes store had a huge impact on the sales of iPod. After the launch of iTunes, sales of iPod increased from 78,000 to 304,000 units in one