Apple iPod Web

nullCompetitive Analysis of Apple’s iPod and iTunesCompetitive Analysis of Apple’s iPod and iTunesToday’s ProgramToday’s ProgramMusic as a Revenue Source Apple iPod and Apple iTunes 5 Force Analysis Summary and Recommendations http://www.jlhg168.com 飞利浦投光灯 飞利浦泛光灯 飞利浦工矿灯 http://www.u51688.com http://www.qiwhy.comnullGenerating Revenue from MusicGenerating Revenue from MusicBackground - Before Recorded Music Musicians and Composers Instrument Makers, Concert Halls, and Sheet Music Scribes Generating Revenue from MusicGenerating Revenue from MusicBackground - After Recorded Music Recording Companies Wholesale/Retail Companies Distribution - Media and Equipment Electronic Playback Device Companies Software Companies Computer Companies Evolution of TechnologyEvolution of TechnologyDevices and Media Analog Devices Edison’s Cylinders Vinyl Recordings Tape – Reel to Reel, 8 Track, Cassette Evolution of TechnologyEvolution of TechnologyDigital Devices and Media CD/DVD Flash Memory MP3, iPodPrevious Customer Focus Before the MP3 PlayerPrevious Customer Focus Before the MP3 PlayerPre-recoded Music Buy the Entire Album (no 45’s from the 70’s) Buy the Entire Album at Record Store Limited Selection Limited Shelf Life Limited Quality of Originals and CopiesCurrent Customer Focus With the MP3 PlayerCurrent Customer Focus With the MP3 PlayerBuy Devices On-Line or in Store Buy Individual Songs On Line Hundreds of Song per Device Seemingly Limitless Selection of Songs Excellent Quality of Originals and Copies Apple iPod The Leader in MP3 MusicApple iPod The Leader in MP3 MusicProvides Complete Music Program iPod, Shuffle, mini, nano MP3 Players iTunes Music vs. Subscription Services Software and PeripheralsiPod Sales iPod Sales Since Introduction in 2002– 21 million sold First 3 Quarters of 2004 – 2.4 million sold First 3 Quarter of 2005 – 16 million soldiTunes Music Store and PeripheralsiTunes Music Store and PeripheralsYear to Date Revenue Increase of 252% over 2004 $0.99 per Song Downloaded $9.99 per Album Downloaded iPod 60GB Capacity to Store up to 15,000 Songs iTunes Revenue to Surpass Power Macintosh Revenue Internal RivalryInternal RivalryIndustry expansion Price Sensitivity Switching BarriersAudio books, Videos etc. $0.99 Song Downloads Digital Rights Management, Preference TrackingThreat of EntrantsThreat of EntrantsApple is Vertically IntegratedEntrants could be music providersEntrants could be digital music device manufacturersAvailability of Substitute and Compliment ProductsAvailability of Substitute and Compliment Products Substitutes Digital Music Devices Walkman type devices CD Players Flash Memory Devices Legal Downloads Piracy Subscription services CD’s Compliments Digital Music Devices FM Radio tuners Speaker Systems Carrying Cases Legal Downloads Videos Audio Books Pod Casts Power of SuppliersPower of SuppliersSuppliers Have Other Customers Flash Memory Hard Drives TFT-LCD Screens Lithium-ion batteries Greed of Content Suppliers Want Larger Share of Profits Ultimate control over distribution channelsPower of BuyersPower of BuyersGeneral Public is the Buyer Apple must continually innovate and increase content to maintain market share Apple must maintain low price point avoid the public’s return to piracySummary and RecommendationsSummary and RecommendationsStrategy Canvas for Apple’s iPodStrategy Canvas for Apple’s iPodUnderpinnings of Apple’s StrategyUnderpinnings of Apple’s StrategyProduct design squarely focused on consumer experience Design innovation through “deep collaboration” Accelerated innovation through “seamless integration” Strong partnerships with suppliers and manufacturers Rapidly expanding business environment Entertainment & Computing Hub of the digital home iPod, Mac mini, iMac, Airport Express Mac OS X, QuickTime, iChat, iWork, Safari, .Mac iLife suite ( iTunes, iPhoto, iMovie HD, iDVD, GarageBand) RecommendationsRecommendationsDiversify supplier base for critical components like flash memory, LCD panels, backlight LEDs, micro disks Keep a close watch on the subscription model and explore launching a similar service as complement in the future Tone down the rhetoric against music industry content providers Add an FM tuner to Nano and video iPodConclusionConclusionApple dominates the digital music market Consumer focus, superb design and continuous innovation are the keys to Apple’s success A healthy ecosystem has helped expand iPod’s use and spurred its rapid growth and adoption Content providers and competitive offerings pose a serious threat to iTunes but Apple has leverage to deal with it Apple is well positioned to become the Entertainment Hub null