The record companies were initially happy receiving $0.70/song from Apple since prior to this arrangement, they were not getting paid for downloaded music (Brickley, Smith, & Zimmerman, 2009). As the digital market gets bigger, the record companies are getting dissatisfied with Apple’s pricing policy and are pushing for a change to a complex pricing policy, where new and popular songs will be priced higher. They have complained that Apple’s is using their music to promote the sale of the iPod since music from the iTunes store is only compatible with the Apple software. As of January 2008, all four major record companies agreed to allow Amazon.com sale their music in the MP3 format without the digital locks that restricts users from making copies of the songs though each of the companies excluding EMI Group requires Apple to sell their music with all the digital rights (Brickley, Smith, & Zimmerman, 2009). Analyzing the managerial Decisions 1.
* Apple has the biggest online apps store for iPhones, iPods touch, iPad and Mac with over 585,000 apps for users. * The stage of iPhone 4S ’ s ‘product life cycle’ is growth. Because It has just came out to the market for only 6 months and with a lot of new software and features it might affect some applications that do not fit with the new changes. So Apple needs to update the firmware and improve the quality of performance for the phone, example: apple just release the update iOS 5.1 to increase the battery life and improved Siri by provide a new language for voice recognized: Japanese bring up to 6 different kinds of voice recognized languages: English, British English, Australian English, French, and German. * Our organization’s overall marketing strategy is in order to satisfy consumer and increase the market volume, we need to give them better quality and performance of products with lower price.
During this stage Apple developed, updated software, new features and continued to keep the style of the iPod that made their style unique to Apple. They developed a user friendly interface, better software, hardware and even the packaging attracted customers and had them coming back for more. As David Taber said that “While everyone else was making an MP3 player that was better/cheaper/faster, Apple was making electronic jewelry that also played MP3’s. Never focusing on price, they brought to market more value, more style, and new ways of interacting with digital media.” (Weisbein, pg 1) Apple also ensured that they made the iPod more reliable by using better parts then their competitors. They also ensured they stayed ahead by updating their hardware, software, and providing newer applications for the iPod.
It seemed like a lot of hype for what in all reality was yet another smartphone for more money with added tricks and sparkle. The author of Meet the new iPhone. Same as the old iPhone was trying to convey that to his audience. Michael S. Rosenwald had a clear argument that is the iPhone 5 is not as ingenious as Apple wants America to believe. His purpose was to relay this information to the public so that they would not be so blind and naïve of Apple’s debauchery.
(Samsung Galaxy Tab, Toshiba Thrive, HP TouchPad, BlackBerry Playbook--the list goes on.) Competitors must find a sweet spot in price to sell the tablet, possibly in the $300 to $399 range, and make up for any deficiencies through services. That's the only way tablet makers can hope to become second place to Apple. And as both Epps and Chowdhry remind me, second place--behind Apple--isn't even all that impressive. "If you think selling 200,000 or 300,000 over the span of two months or so is good, well then you are probably right," Chowdhry says.
In analyzing Apple and other competing firms, TC Management Consultants found that, relative to its competitors, CanGo occupies a very small position in the Music, Video, Book and Entertainment Retail Industry. Market Analysis The CanGo Company experienced substantial growth in 2009 developing into a $51 million dollar business. This makes it strategically important to analyze the challenges CanGo will encounter with book sales and MP3 sales in 2010 as well as their new $30 million venture into Online gaming. The market analysis will examine CanGo’s position in the book, MP3, and gaming industry.
They can do somehow a better job in making sound investments and control the marketing with their products. I see that there were some challenges from some years especially when PepsiCo and Coco-Cola were at a war to compete each other with their businesses. Coca-Cola and PepsiCo are a few years apart, but both of them are well known and have such popularity with people drinking their sodas. Coca-Cola has been trying to surpass PepsiCo in their annual sales; however, from review, PepsiCo somehow has the highest number in their annual sales than Coca-Cola. PepsiCo has shown the best current ratio and is able to pay off their debts, which Coca-Cola does not have that and is struggling to pay off their debts.
First and the volume of mobile phone owners is certainly greater than PC owners, as you know, the global number of mobile phone subscriptions topped 3 billion now. As a result, play board games are more popular than PC games, which mean an ad in mobile games will provide a better commercial than the effect of a PC game. * The low cost of mobile device games ties into another key advantage - the huge variation among mobile games. Since mobile games can be produced faster and cheaper than other video games, developers can take more of a risk in trying out new concepts or ideas. Developers don't stand to lose as much if an experimental game is unpopular.
The popularity of internet music distribution has increased and in 2009 more than a quarter of all recorded music industry revenues worldwide are now coming from digital channels. [12] However, as The Economist reports, "paid digital downloads grew rapidly, but did not begin to make up for the loss of revenue from CDs. "[9] The 2008 British Music Rights survey[13] showed that 80% of people in Britain wanted a legal P2P service, however only half of the respondents thought that the music's creators should be paid. The survey was consistent with the results of earlier research conducted in the United States, upon which the Open Music Model was based. [14] According to Nielson Soundscan, by 2009 CDs accounted for 79 percent of album sales, with 20 percent coming from digital downloads, representing both a 10 percent drop and gain for both formats in 2
Apple operates in an industry where the latest and greatest is old news by mid next month. There are constant changes which lead to huge dollars being spent to stay ahead of the competition. Apple has been successful as of late developing and introducing products that are wanted in the market place. They are extremely successful in creating a buzz around their products and a demand for the products which allows them to keep the prices high. One of the biggest challenges that Apple is facing is the compatibility to other computers and devices.