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How Has Apple Taken the Whole Pie?
The digital music revolution has been bigger than anyone could have imagined, well almost anyone. It seems one company, in particular one individual, Steve Jobs, saw into the future quite clearly. Apple Computer Company currently holds a market share of not only digital music players, but they also have the largest online music store. It's odd that the company that only holds a market share of 7% for personal computer users, has the whopping 70% market share for MP3 players. Apple computer is a company that was founded on innovation and the always-expanding frontier. At the time when Apple introduced its first iPods in 2001, most companies rejected the idea. Many companies thought that the iPod was an overpriced CD player and nothing more. Competitors are kicking themselves now because the iPod mini is America 's best selling MP3 player. Apple has also dominated the industry by selling songs and more through its iTunes music store. To date Apple holds over an 85% market share for electronic music and has sold over half a billion tracks.
Apple has been successful in this market for several reasons, but mostly because they offer both the player and the music, all packed into an easy to use, streamlined package. Apple Computer developed an innovative product at the right time and marketed it in the right way. Now iPod has established a brand name and has become more than just a music player. Microsoft and Bill Gates dropped the ball here, and Jobs in no way wants to let them into the scene. Apple continuously has updated the iPod and iTunes products to remain number one in the business.
Our project aims are to develop the reasons that Apple has dominated this industry and look at how they have continually increased the sales of iPods and music. Contrary to common sense, many iPod users have purchased several iPods and the sales of iPods continue to climb each and every quarter. The most interesting thing is how they have cornered two markets and have integrated both products. These are just a few of many topics that we will address and develop over the course of the project.
iPods are a unique idea and our approach will be unique as well, therefore we will focus more on an interactive in-class type of project versus a conventional one. We will try to pull creativity and activity into an in class activity of some sort that will give the class an understanding of our findings. Our presentation's goal is to give the information to the class in a way that represents Apple and their bold business approach. The class and the professor will be the main targets as far as a presentation audience goes. If we effectively communicate our findings to the audience, then we have done our job.
This topic is of great interest to us as a group because we represent the main constituents to the iPod craze. Most iPod users are in either high school or college, which we definitely fall in. The iPod and iTunes has shaped how we view music, which is amazing. Apple has revolutionized and changed the industry and we feel that it is of great interest to find out how and why. It is interesting to look at these products as two separate ones and then to look at both of them as an entire package. There are three ways to look at the problem and to discover the system behind the products, all of which have important aspects. This project will allow us to explore Apple's inovation in more detail and to discover how to repeat such a success.
