Ipod, renewal of apple, business strategy, iPod shuffle, mini iPod, extended distribution, DIGITAL Hub strategy, free iTunes
In 2001, Apple launched its revolutionary product: iPod, a small jewel of technology, which will give as a result a rise to a new market, that of the numerical walkman with hard disk. Forerunner in its field, Apple has always been an innovative firm. Its progress was for a long time attributed to its capacity to distinguish from others and to unceasingly anticipate the market trends. But, in the nineties, Apple had large difficulties relating to an environment in deep change, and the firm showed the limits of its model and especially the bad definition of its orientations and strategic intentions.
[...] Apple realizes the importance of this differentiating image for consumers. The iMac is an anticipation of the maturity of the market of the micro data processing. To sell a tendency can be much more advantageous and Jobs knows it. Especially, when this bias is conveyed by products much more profitable than computers and is attractive for the younger generations. We can better understand then why the iPod will hold an extremely strategic role for the company and will contribute to the advent of a whole generation (iMac, iPod, iTunes, etc . [...]
[...] The RIO Company had the same approach. PHILIPS and SONY are the most serious competitors, but they launched only one model of hard disk reader. In conclusion the place of leader of iPod is not currently threatened. Strategy of Apple: The DIGITAL Hub 2000 marks a difficult period for Apple and its market of high technology which slows down since the bursting of the Internet bubble. Apple then decides to benefit from increasing opportunities on the market of personal electronic peripherals: CD readers, MP3 readers, numerical cameras, DVD readers, electronic agenda organizers. [...]
[...] They are able to reduce their cost with the margins they currently have. The market Apple is targeting is the younger generation and they should begin to focus on the older population that are concerned with prices and how it works but not with the aesthetics. Even more so they should look at the businesses and try to target them into using only Mac's within their business but in order to do this Apple needs to become more compatible because of the globalization of today's economy. [...]
[...] The only strategic orientation which will be displayed is that which is encouraged by the line of products Apple has. Indeed, the parallel marketing of Apple 2 and Macintosh will determine the core trade of the firm: graphic arts and industries (printers and workshops of prepress). History of Apple and Reasons of the Launching of iPod To understand what led Apple to launch the adventure iPod, it is essential to see how this company little by little built their own strategy, after being based on the simple instinct of its founder. [...]
[...] This partnership implies the presence of a reduced version of iTunes on the phones. Thus Apple can benefit from the few 600 million of cell phones sold by Motorola per year. The partnership between HP and Apple is based on the following principle: HP equips its computers with iTunes and in exchange can market the clone of iPod under the HP brand. These partners integrate a more or less important degree of numerical technology in their customer offer. These partnerships thus fit very well in the Apple strategy of DIGITAL Hub. Moreover, the "accessories" present assets with respect to the distributors: the sale of iPod accessories is well remunerated in term of commissions for distributors. [...]
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