Apple Online Store Strategy

GROUP B _Choose three union competencies of orchard apple tree Inc. How did these competencies furnish orchard apple tree to make sense start of the preserve medicament industry in the early 200s? How did they identify the company up for robust outgrowth user advantage? How st adapted do those advantage seem now? (See Jay Barneys Looking Inside for Competitive value Zooks Finding Your Next total Business). As the Internet found recorded medicine segment impacts to germinate into opposite devices, will orchard apple trees competencies continue to generate advantage versus suc competitors as investigate in Motion and dell Inc.? orchard apple tree today is the leading player in the internet unison industry with oer 6 billion songs downloaded since the launch of its iTunes online medicine inventory, which today contains more than 10 million songs. orchard apple tree introduced iTunes and its online euphony interject in 2001 when there were several major players, such as Amazon and Napster, competing for the market. However, apple was able to outperform these competitors with its three main core competencies, software package, retailing and branding.In 2003, Apple introduced the iTunes online unison store that anyowed guests to barter for and download songs promptly from the store to their computer through iTunes, and and then transfer them directly to their iPods. By that time, most(prenominal) of Apples competitors twisted their customers songs through subscriptions, nevertheless they did not provide customers full picture of the songs they purchased, i. e. , songs purchased would be lost once customer no longer subscribed. Apple was able to offer customer a unit new charge of selling songs to customers.They allowed customers to get songs like CDs, cassettes in store and never had their songs lost since there were no subscriptions required. In addition, Apple in like manner allowed the customer to drone the songs they intended to purchase in erect to avoid downloading the wrong songs. In hallow to be able to allow customers to purchase songs for a low cost, Apple reignd to talk over a landmark deal with biggest 5 music companies in the world, Warner, Universal, BMG, Sony and EMI.Songs offered by Apple were using DRM (Digital Right Management) technology to forbid the songs to be unlimited shared. However, the songs could be utilize to burn unlimited CDS and transferred to unlimited iPod. Since 2001, Apple had gained tremendous branding reputation for its iPod MP3 players. Since then, it has arrest the most popular MP3 player in the world. When iTunes online music store was introduced in 2003, Apple had provided an extremely convenient mode for lawfully purchasing songs and transferring them directly to customers iPods.Therefore, Apples iTunes online music store was widely welcomed and current by a large keep down of customers. Apple was a pioneer in combining online music store and music manag ement in one software that allow customers to conveniently purchase and manage their music. Since iTunes was introduced along with the first iPods, it has been well cognise for simplicity and user-friendly interface. Therefore, iTunes had largely contributed to the achiever of Apples online music store and the elimination of its competitors.As the internet based recorded music segment continues to evolve into former(a) devices, Apple has taken some other new strategies in selling music to customers. In June 2009, Apple has more than 10 million songs in its online music store, and since 2006, Apple started to take DRM off their songs and offer customers DRM-free songs. 8 million songs was DRM-free since June 2009 and Apple has been making lather to offer all of their songs free of DRM.Today, Apple does not have only iPod as their MP3 players, but they also have other devices such as iPhone, iPad and iPod vex, that can all utilize the iTunes online music store. The introduction of iPhone and iPod Touch has provided Apple an opportunity to expand its iTunes store beyond a simple online music store to pass an online recreation store, which offers many varieties of movies, music, TV episodes, games, applications and books. This has made Apple become the leading brand in ripe technology and its brand ranking has been red up in recent years.ITunes itself also has gone through remarkably avail in order to offer customers a simpler, more interesting and interactive way of browsing the online store. In general, despite desirous competitions from other player such as Research in Motion and Dell Inc. , Apple has been able to outperform them and offer customers the most unique and efficient way of purchasing music and other online entertainment contents. This has been proved by growing origin prices, and increasing profit figures since Apple iTunes online music store was introduced in 2003.