AppleEssay Preview: AppleReport this essayIntroductionApple, a long time competitor in the personal computer market, has in the past taken a back seat to their rivals, and was even was on the verge of bankruptcy. The problem for Apple was their paradigm – if an innovation did not come from within Apple, they did not want to know about it. When Apple made a paradigm shift in the mid-nineties their business changed and prospered. Apple brought in inventions from outside the company, they redesigned their supply chain and forged very unusual partnerships to gain a competitive edge. Will they be able to maintain this edge against major competitors who are keen to knock Apple off its towering tree with product developments and strategic alliances of their own? Will Apples closed mindedness creep back in, and see them repeat costly mistakes from the past and lose their advantage? Using the framework provided by Wells (1998) three strategies are recommended that focus on technology, marketing and the development of the iTunes element of the business to maintain and develop Apples competitive advantage in the digital entertainment market.
Slicing up the Apple – the Perceiving stageIn the perceiving stage of the strategic thinking process Wells (1998, p.90) suggests that there are 6 stakeholders to consider – customers, competitors, strategic partners, providers of complementary products, suppliers and distributors.
We examined several key stakeholders below and found that while Apple has several major competitors in the digital entertainment market it has developed relationships with its competitors so that they are also suppliers.
CustomersThe customers of the Apple iPod are people who want to enjoy the benefits of the latest technology in digital music players. When he introduced the product in October 2001 Steve Jobs the CEO of Apple was quoted as saying, “With iPod, Apple has invented a whole new category of digital music player that lets you put your entire music collection in your pocket and listen to it wherever you go,” (Kleinschmit 2005)
Apple went further than other companies in creating iTunes software to complement its iPod MP3 player so that users could access Apples iTunes online Music Store. This was something that none of the other makers of MP3 players had been able to achieve. Tim Kleeman (interview, 2006), director of Apple retail outlets in Adelaide, expressed the view that Apple had came up with the total solution: the digital player and the online music store; and that Apple had scored a coup in securing agreements with the 5 largest music companies to create iTunes. Today over two million music and video tracks are available online with iTunes to satisfy every musical taste, as well as short films and TV programmes (Golderman & Connolly 2006).
In 1996, following Apple’s introduction of iTunes, a new set of standard iTunes applets for music downloaded and stored on various Macintosh models was introduced. This followed a partnership with a British company called BFM Music, which used the Apple iPod and Apple Music II systems.
BFM was also involved in a joint venture between Apple and Playbook which provided music software and software applications on Macintosh systems for Macintosh (Apple Books, Apples, iPad, and iPhone). It was to be the first iTunes software on-line database where people could use information to create their own Apple Music songs and work with others using its own application on-line service. This was a major success. By the following year, the company had built, launched, and ultimately sold over 100 million iTunes downloads and over 5.7 million total downloads of all types of music. On average, around 100 million iTunes downloads were created and in an industry that had been saturated with products for over a century, this was a huge number. According to an earlier report from the Institute of British Columbia in 2011, the music industry in Ontario recorded a record 3 (25 percent) of its revenues from music-related products in 1996-97.
The technology of iTunes brought new and exciting features to music piracy, and the opportunity for musicians (and others who used music in other ways) to make music for purchase and for profit. Music from songs, videos, magazines, and movies became a source of revenue for Apple and its sister app Store, along with a major boost to its reputation globally. Some of this revenue came from artists such as Eminem and Britney Spears, while a few came from other musicians such as The Rolling Stones, and from others such as John Paul Jones. As well as having more money left over from the sale of more than 30 million CDs, Apple was also able to generate a significant number of album sales at various levels of the music business. Despite this revenue, however, the music industry was still under heavy criticism. According to a study by the Centre for Internet and Society published in 1998 by the University of Western Sydney, there were only about 17,000 Canadian radio artists using iTunes and the rest used Apple. In particular, only 2,000 of the 25 000 Canadian radio artists listed on the BFM AppStore had music at all times. In other words most radio stations (not just in those places where music was being played) didn’t show even their top ten radio hits. With its own record store and store online, Apple effectively opened the door to a vast swath of users that used other streaming services to purchase their works.
On the other hand, the Music Industry in Canada (MIA) represented over 60% of the total revenue of iTunes for a year. The Canadian MIA accounted for 42.1% of total revenue for a year between 1996-97 and 1996-97 (for a comparison, see the chart below
In 1996, following Apple’s introduction of iTunes, a new set of standard iTunes applets for music downloaded and stored on various Macintosh models was introduced. This followed a partnership with a British company called BFM Music, which used the Apple iPod and Apple Music II systems.
BFM was also involved in a joint venture between Apple and Playbook which provided music software and software applications on Macintosh systems for Macintosh (Apple Books, Apples, iPad, and iPhone). It was to be the first iTunes software on-line database where people could use information to create their own Apple Music songs and work with others using its own application on-line service. This was a major success. By the following year, the company had built, launched, and ultimately sold over 100 million iTunes downloads and over 5.7 million total downloads of all types of music. On average, around 100 million iTunes downloads were created and in an industry that had been saturated with products for over a century, this was a huge number. According to an earlier report from the Institute of British Columbia in 2011, the music industry in Ontario recorded a record 3 (25 percent) of its revenues from music-related products in 1996-97.
The Music Technology Company has made significant contributions to the health of the music industry and the music business
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Canadian music business has seen several innovative and pioneering product-driven models develop in Canada over the past several years. Despite this, there are still some high rates of failure to meet growth expectations, particularly for electronic music. To help ensure that Canada remains a leading producer of contemporary music, Canadians are investing millions of dollars in research and development, as well as in new and innovative music technologies through the CACTA Canada and Canadian Research Council.
As our focus continues to grow and Canadians continue to invest in the music industry, they are also providing the CACTA with significant financial and technical resources to be effective in providing services to Canadian consumers as well as those on the other side of the border.
CACTA is committed to serving consumers and providing Canada’s most relevant music business with the tools, products, and information to help make this business happen, and continues to work with the Canadian government to continue the Canadian Music Research Council’s mission of building innovative solutions, services, and innovation to address important challenges facing Canada’s music industry. In December 2015, CACTA released more than 50 proposals for a national service that would integrate, and make available in partnership with, many leading Canadian music companies and companies. These include new music libraries, and music-themed music festivals, all that provide a strong Canadian consumer experience to Canadians with growing demands for music and a renewed interest in listening.
CACTA recognizes that the best quality music service makes for an inclusive musical experience. We are committed to providing consumers with the best music experience with the best customer experiences, including more than 400,000 individual songs, 12 Canadian-based live shows, a unique musical experience of 60 minutes, and more. This new service is a step in the right direction for Canadians who want to participate in this important, important Canadian culture.
Our vision is to create the best music experience possible for Canadians regardless of their identity and gender and whether or not they live in a gender-based world view
This partnership is an important aspect of the broader project of CACTA’s Canadian Music Research Council’s (CMRC) Canada and the Canadian Music Industry Council’s (CMITC)’s Canada-Africa Leaders project. We want to share the message behind our partnership with the CDRO’s CRTC and the MMII’s CRTC for the long-run and our involvement in the CMRC and MMII’s engagement with music by a number of music producers.
Our commitment to share knowledge and experience within a multicultural culture also serves to empower Canadians with a shared perspective on music and how to make their music experience the best-informed one possible.
IBCL supports all Canadian music producers and music retailers—not just CD and MP3 producers. Through our partnership with Canadians and our involvement with brands, artists, and labels from across industries as well as their communities
We are committed to provide Canadian consumers with the best music experience by working to make music experience as an art form accessible. We believe all Canadians want more than music: every Canadian value quality. We want to bring together a diverse set of music producers in what’s essentially the first online community of Canadian consumer music (IPO). We don’t want music to be heard, the experience is lost on us, and the music becomes part of the experience. With this, we focus on providing the best music experience by bringing together artists from across industry.
When CACTA launched its first proposal, in January 2015, it was seen as an important step to build online and digital connections and connect Canadians in the music community and with brands. CACTA’s first proposal was a partnership with the CDRO’s CRTC to take advantage of its unique identity to create a Canadian-centered listening experience. CACTA is committed to providing Canadians with the best music experience by working to make music experience the best-informed one possible.
CACTA’s global, local and global strategy is focused around our mission to create a more global sound than has traditionally been seen.
CACTA works with international, independent producers and consumers across Canada to develop a strategy that will lead to innovation and an emerging industry of choice at home. Through the collaboration of CDRO, CRTC, MMII and the Canadian Music Industry Council
CACTA’s Canadian Music Foundation supports Canadian consumers with a diverse range of digital and digital products, services and knowledge for their use on a
CACTA proposes to implement a national service that would integrate many leading Canadian music companies and individuals in partnership to help Canadians understand the importance of music to their economic and social future. It would then be available to consumers who choose to purchase or listen to music. This would also help increase the competitiveness of Canada’s music industry as music and music-related products are increasingly traded on the world’s most popular exchanges of electronic, digital, and physical music.
The Canadian government offers support to help implement the proposed service, such as ongoing support through programs and services through the Canadian Government’s Trade Development Program for the Canadian Music Industry, which allows Canadian people to benefit from a wide range of Canadian government support, such as job openings, free music downloads, and a free program known as “Innovator’s Business Plan.”
The technology of iTunes brought new and exciting features to music piracy, and the opportunity for musicians (and others who used music in other ways) to make music for purchase and for profit. Music from songs, videos, magazines, and movies became a source of revenue for Apple and its sister app Store, along with a major boost to its reputation globally. Some of this revenue came from artists such as Eminem and Britney Spears, while a few came from other musicians such as The Rolling Stones, and from others such as John Paul Jones. As well as having more money left over from the sale of more than 30 million CDs, Apple was also able to generate a significant number of album sales at various levels of the music business. Despite this revenue, however, the music industry was still under heavy criticism. According to a study by the Centre for Internet and Society published in 1998 by the University of Western Sydney, there were only about 17,000 Canadian radio artists using iTunes and the rest used Apple. In particular, only 2,000 of the 25 000 Canadian radio artists listed on the BFM AppStore had music at all times. In other words most radio stations (not just in those places where music was being played) didn’t show even their top ten radio hits. With its own record store and store online, Apple effectively opened the door to a vast swath of users that used other streaming services to purchase their works.
On the other hand, the Music Industry in Canada (MIA) represented over 60% of the total revenue of iTunes for a year. The Canadian MIA accounted for 42.1% of total revenue for a year between 1996-97 and 1996-97 (for a comparison, see the chart below
In 1996, following Apple’s introduction of iTunes, a new set of standard iTunes applets for music downloaded and stored on various Macintosh models was introduced. This followed a partnership with a British company called BFM Music, which used the Apple iPod and Apple Music II systems.
BFM was also involved in a joint venture between Apple and Playbook which provided music software and software applications on Macintosh systems for Macintosh (Apple Books, Apples, iPad, and iPhone). It was to be the first iTunes software on-line database where people could use information to create their own Apple Music songs and work with others using its own application on-line service. This was a major success. By the following year, the company had built, launched, and ultimately sold over 100 million iTunes downloads and over 5.7 million total downloads of all types of music. On average, around 100 million iTunes downloads were created and in an industry that had been saturated with products for over a century, this was a huge number. According to an earlier report from the Institute of British Columbia in 2011, the music industry in Ontario recorded a record 3 (25 percent) of its revenues from music-related products in 1996-97.
The Music Technology Company has made significant contributions to the health of the music industry and the music business
>
Canadian music business has seen several innovative and pioneering product-driven models develop in Canada over the past several years. Despite this, there are still some high rates of failure to meet growth expectations, particularly for electronic music. To help ensure that Canada remains a leading producer of contemporary music, Canadians are investing millions of dollars in research and development, as well as in new and innovative music technologies through the CACTA Canada and Canadian Research Council.
As our focus continues to grow and Canadians continue to invest in the music industry, they are also providing the CACTA with significant financial and technical resources to be effective in providing services to Canadian consumers as well as those on the other side of the border.
CACTA is committed to serving consumers and providing Canada’s most relevant music business with the tools, products, and information to help make this business happen, and continues to work with the Canadian government to continue the Canadian Music Research Council’s mission of building innovative solutions, services, and innovation to address important challenges facing Canada’s music industry. In December 2015, CACTA released more than 50 proposals for a national service that would integrate, and make available in partnership with, many leading Canadian music companies and companies. These include new music libraries, and music-themed music festivals, all that provide a strong Canadian consumer experience to Canadians with growing demands for music and a renewed interest in listening.
CACTA recognizes that the best quality music service makes for an inclusive musical experience. We are committed to providing consumers with the best music experience with the best customer experiences, including more than 400,000 individual songs, 12 Canadian-based live shows, a unique musical experience of 60 minutes, and more. This new service is a step in the right direction for Canadians who want to participate in this important, important Canadian culture.
Our vision is to create the best music experience possible for Canadians regardless of their identity and gender and whether or not they live in a gender-based world view
This partnership is an important aspect of the broader project of CACTA’s Canadian Music Research Council’s (CMRC) Canada and the Canadian Music Industry Council’s (CMITC)’s Canada-Africa Leaders project. We want to share the message behind our partnership with the CDRO’s CRTC and the MMII’s CRTC for the long-run and our involvement in the CMRC and MMII’s engagement with music by a number of music producers.
Our commitment to share knowledge and experience within a multicultural culture also serves to empower Canadians with a shared perspective on music and how to make their music experience the best-informed one possible.
IBCL supports all Canadian music producers and music retailers—not just CD and MP3 producers. Through our partnership with Canadians and our involvement with brands, artists, and labels from across industries as well as their communities
We are committed to provide Canadian consumers with the best music experience by working to make music experience as an art form accessible. We believe all Canadians want more than music: every Canadian value quality. We want to bring together a diverse set of music producers in what’s essentially the first online community of Canadian consumer music (IPO). We don’t want music to be heard, the experience is lost on us, and the music becomes part of the experience. With this, we focus on providing the best music experience by bringing together artists from across industry.
When CACTA launched its first proposal, in January 2015, it was seen as an important step to build online and digital connections and connect Canadians in the music community and with brands. CACTA’s first proposal was a partnership with the CDRO’s CRTC to take advantage of its unique identity to create a Canadian-centered listening experience. CACTA is committed to providing Canadians with the best music experience by working to make music experience the best-informed one possible.
CACTA’s global, local and global strategy is focused around our mission to create a more global sound than has traditionally been seen.
CACTA works with international, independent producers and consumers across Canada to develop a strategy that will lead to innovation and an emerging industry of choice at home. Through the collaboration of CDRO, CRTC, MMII and the Canadian Music Industry Council
CACTA’s Canadian Music Foundation supports Canadian consumers with a diverse range of digital and digital products, services and knowledge for their use on a
CACTA proposes to implement a national service that would integrate many leading Canadian music companies and individuals in partnership to help Canadians understand the importance of music to their economic and social future. It would then be available to consumers who choose to purchase or listen to music. This would also help increase the competitiveness of Canada’s music industry as music and music-related products are increasingly traded on the world’s most popular exchanges of electronic, digital, and physical music.
The Canadian government offers support to help implement the proposed service, such as ongoing support through programs and services through the Canadian Government’s Trade Development Program for the Canadian Music Industry, which allows Canadian people to benefit from a wide range of Canadian government support, such as job openings, free music downloads, and a free program known as “Innovator’s Business Plan.”
The technology of iTunes brought new and exciting features to music piracy, and the opportunity for musicians (and others who used music in other ways) to make music for purchase and for profit. Music from songs, videos, magazines, and movies became a source of revenue for Apple and its sister app Store, along with a major boost to its reputation globally. Some of this revenue came from artists such as Eminem and Britney Spears, while a few came from other musicians such as The Rolling Stones, and from others such as John Paul Jones. As well as having more money left over from the sale of more than 30 million CDs, Apple was also able to generate a significant number of album sales at various levels of the music business. Despite this revenue, however, the music industry was still under heavy criticism. According to a study by the Centre for Internet and Society published in 1998 by the University of Western Sydney, there were only about 17,000 Canadian radio artists using iTunes and the rest used Apple. In particular, only 2,000 of the 25 000 Canadian radio artists listed on the BFM AppStore had music at all times. In other words most radio stations (not just in those places where music was being played) didn’t show even their top ten radio hits. With its own record store and store online, Apple effectively opened the door to a vast swath of users that used other streaming services to purchase their works.
On the other hand, the Music Industry in Canada (MIA) represented over 60% of the total revenue of iTunes for a year. The Canadian MIA accounted for 42.1% of total revenue for a year between 1996-97 and 1996-97 (for a comparison, see the chart below
The newer versions of the iPod have video capacities (Foust, Symonds, Grow & Katzenberg 2006) while the iPod HiFi can replace the traditional home music system (Lewis 2006). The genius of Apple has been to develop the iPod product range so that there is something for everyone.
CompetitorsThe iPod dominates the MP3 player market with 74% market share. Its unsurprising therefore that Apple has big name competitors working hard to increase their market share.
Microsoft has been developing software to go together with hardware designed by companies like Phillips, Samsung and Creative (TechWhackNews 2005) and is reputed to be working to create an online store to vie with iTunes (Levy 2006).
Sony has a well-established position in the portable digital audio player market and like Apple have developed a range of products to meet the needs of a diverse customer market. “We believe were in a unique position as an entertainment company. As digital technologies converge, were evolving to combine portable audio and entertainment. If someone wants to play games, listen to music, or watch a movie, we offer that in one device. If they want to make a call, take a photo, and listen to music, we do that too. So were going to continue to pursue what weve always pursued: identifying consumer lifestyles and making products that work for them”(Fast company.com 2005).
Creative has developed its Zen range of products to compete with the Apple iPod range. Creative has recognised the importance of creating a concept design however does not have the marketing dollars of Apple to promote its product (Fast company com 2005). Its approach has been to offer extra features such as a personal organiser, recorder, FM tuner & more video capacity in its Zen Vision for example (Marsal 2005). In the highly litigious world of technology patents Creative are also taking on Apple in the courts (BBC News 2005).
Other companies such as Dell with its Pocket DJ, Innodesign with iRiver and Archos with the Gmini 400 have created specialised products to rival the iPod products. (Fast company. com 2005). Rio had been a serious contender to Apple when they developed a mini-hard-drive player, the Nitrus, a year before Apple released iPod and then developed the Carbon to compete with Apples hugely successful iPod mini. However, Rio was ultimately unable to compete with the resources of Apple and Sony in developing the sophisticated range of products required to stay in this fast-expanding market.
Napster software is the main rival to the iTunes software application to download music from the internet. Napsters software enabled peer-to-peer (P2P) networking through a central directory but was forced to shut down after a court ruled that Napster was breaching copyright in July 2001. The Napster 2.0 was released in 2004 and is easily the main competitor to iTunes for online music services. Yahoo! Music, RealPlayer Music Store, Rhapsody and MTV.com are smaller competitors according to a study conducted by Peter Cohen (2005).
The battleground has moved to the total home entertainment package. Microsofts Windows Media Centre and Apples iLife suite are leading the way. According to Tim Kleeman (interview, 2006) Sony, Microsoft and Apple are locked into a race to develop a killer product that will integrate all the technologies into a digital home entertainment centre.
Strategic PartnersApple has formed strategic alliances with companies like Nike to develop the technology to monitor exercise and listen to music with a sensor device that is fitted into Nike sport shoes (Kahney 2006); another example is iTunes and mobile