Itunes Music ( Apple ) Store Entered Into The Music Market

ITunes music (Apple) store entered into the music market in 2003. However, prior to Apple s entry into the digital world of music, the industry was fighting this new wave of music getting released to customers. However, with Apple s release of its iPod digital-media player (2001) and adding the iTunes Store in 2003, they became the gatekeeper of digital downloads. Consequently, they promptly became supreme inside this new swim lane of the music industry. The key player that allow this was the iPod, MP3 players, and Apple s own iTunes software which all interfaced, thus making them one of the industry most popular amongst technology favorites and consumers. However, the music companies did not take too kindly to this, they were at odds†¦show more content†¦Apple used the concept of variable pricing upon their entry into the world of digital music, in their efforts to identify the structure of pricing and to implement pricing strategies which would promote downloadable data. Variable pricing affects the different cost of a merchandise based on the preferences of the manufacturers. While this varies from flat pricing model, where just one fixed price is utilized for those items that are alike. Take the content of purchasing songs, all cost one price and all movies will cost another. Apple captured the music industry with its entry of variable pricing through the iTunes music store. Nevertheless, this pricing tool (variable) was not welcome with open arms by music executives in the industry, but Apple demonstrated its pricing influence in delivering a product and winning over executives as a result of this pricing strategy and that its policy was here to stay. Offering consumers more choices through the use of variable pricing is a great strategy model. Not only can consumers purchase songs they have never purchased through the Apple’s Music Store, Apple also control how they increase the price, which can tremendously affect its revenue. There are articles and reports that have been published on Apple and how they have over 70 percent control of this market base in the United States when it comes to downloading music. Having such a large market sector, as well as providing easy on the go music options to listen to,Show MoreRelatedInnovation in Apple1044 Words   |  5 PagesInnovation in Apple, Inc. Part I: Thinking a technological innovation Apple Inc, is incorporated in 3 January 1977 as a multinational corporation which serves as a manufacturer and designer in the consumer electronics sector. Their focus point is production, marketing and support service of personal computers, computer hardware and software portable mp3 players, portable video players and finally mobile phones with the multimedia function. The company is located in USA, California, SiliconRead MoreiTUnes1432 Words   |  6 PagesAbstract 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 forRead MoreApple Starbucks1340 Words   |  6 PagesAbstract In 2007, Apple and Starbucks became partners in the venture of iTunes store. Over time, another entity entered the equation, ATT. What does this mean to the customer, the dependability of each to provide superior services to their respective products and services? As it is seen within the IT infrastructure, each entity needs to present certain services to keep up the maintenance of the services on each level, to a point to where one, in an ideal world, for logistical reasons, communicateRead MoreThe Apple s Competitive Strategy Essay1017 Words   |  5 PagesStephen Woziniak and Steve Jobs founded Apple Computer in 1976, which was called the Apple I, then in year 1978 just two years after, Apple II was introduced. More than 10,000 units were sold which relatively was a success, Macintosh (Mac), which dramatically change personal computer. iMac, iBook, iPod, iPad, iPhone, and other come from the lineage of Apple. Even though Apple has encountered many setbacks, it continues to bring new and improve products to the market. Apple’s competitive strategy has beenRead MoreApple Inc. in 2010762 Words   |  4 Pagesfactors for Apple, Inc. that have made it successful in the markets that it competes in. First, the company is constantly coming up with new and creative 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 conjunctionRead MoreApple, Inc.: Innovation at Its Best Essay1728 Words   |  7 Pagesthe Fortune 500 they are number one in innovation. They specialize in finding out what people want in a computer and then give it to them. Apple Inc. is the name and would be a great long term investment in the stock market because the company is really innovative with products like the iPod, iMac, MACBOOK, iTunes, iPhone and their newest product the iPad. Apple is number six in company financial soundness and will be around for years to come. (money.cnn.com) Steve Jobs was born on February 24, 1955Read MoreApples Market Capitalization Essay1518 Words   |  7 PagesMarket capitalization is a popular metric for assessing the size of a company as a representation of the investing publics notion of the companys worth. The figure is derived by simply multiplying the number of outstanding shares of the companys stock by the share price. (Slivka, 2010) 3.3 The learning Curve Access to distribution channels complements Apple’s strategy. Unlike most competitors, Apple appears just now to be seeking a strong presence abroad. The U. S. A. accounts for 48%Read MoreApple - History5769 Words   |  24 PagesApple History Steve Jobs and Steve Wozniak founded Apple on April 1, 1976 in Santa Clara Valley, California. The two built the Apple I out of a garage and sold it. The first Apple I computer did not include a monitor, keyboard, or casing. Due to the high demand for the Apple I, Jobs realized that there was a market for small computers. He also realized that he could market the companys name and the computers user-friendly look. In 1977 Wozniak added a keyboard, color monitor, and eight peripheralRead MoreAnalysis of Apple Inc According to Porters Five Forces1426 Words   |  6 PagesThe Apple Company According to Porters Five Forces Introduction: Apple, Inc. is widely recognized as one of the most innovative technology firms in the world. It owes much of this reputation to the identity of its leadership, and particularly to the sweeping changes wrought by the re-emergence of company co-founder Steve Jobs. For its remarkable influence, its exemplary leadership and its constant evolution as a researcher and developer of technological innovations, Apple is an ideal multinationalRead MoreEssay on Apple Cases Study1085 Words   |  5 Pages1. Determine Apple’s business/technology strengths weaknesses. Apple Strengths: 1. Steve Jobs 2. Highly differentiated products 3. Investing huge amount in RD with continual innovation 4. Control of both hardware and software 5. Retail and marketing 6. Fashion – Branded image. 7. Extreme Secrecy 8. Apples Halo effect Apple Weakness: 1. Relying heavily on Jobs 2. Complete control of both hardware and software 3. Not compatible with other products 4. High cost 2