Apple Ipod Case Essay

2350 Words Apr 27th, 2008 10 Pages
Marketing Management
2007

Apple iPod
Case Study

Table of contents
1 ANSWER TO QUESTION 1 1
1.1 HOW WOULD YOU DEFINE THE MARKET FOR THE APPLE IPOD? WHICH ARE THE RELEVANT EXISTING AND FUTURE COMPETITORS? 1
2 ANSWER TO QUESTION 2 1
2.1 HOW WOULD YOU DEFINE APPLE’S COMPETITIVE ADVANTAGE? 1
3 ANSWER TO QUESTION 3 2
3.1 HOW IMPORTANT IS CUSTOMER LOYALTY FOR APPLE? 2
3.2 WOULD YOU RECOMMEND A STRICT EXIT STRATEGY FOR ITUNES, IF THE PROFIT PER TRACK OF 10 CENTS WILL GO DOWN TO ZERO EVEN NEGATIVE? JUSTIFY. 2
4 ANSWER TO QUESTION 4 3
4.1 DEVELOPMENT OF A PERCEPTUAL MAP 3
4.2 WOULD YOU LIKE ADDITIONAL DATA? 4
5 APPENDIX 6
6 REFERENCES 9

Table of Tables
Table 1 Marketing questionaire of portable Mp3 players ranked for
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This value must be leveraged to capitalize on the name and connection to Apple products.
Apple Computer’s business over the last 20 years has overall been a disappointment, but the success of the iPod and iTunes store have rocketed Apple to record stock price highs . The challenge for Apple is to figure out where the future is – in niche computer design, in mass market design or in a combination of both .
In our opinion, it would make sense for Apple to continue to offer iTunes, even at a loss, if it was part of a longer term strategy to say, launch new internet media services over such a site. YouTube has had lots of success here, and there is an increasing demand for online content. Apple has the chance to make a significant entry to this market. Another option is that Apple continues its work with becoming a home media expert. Apple TV, which aims to centralize content at home, is being released in mid-March, 2007. Apple TV works like a home multimedia hub – publishing or streaming movies, TV, music and other media from either your home PC, or directly from iTunes in the internet. The implication for iTunes could be immense, with potential deals from TV broadcasters to small independent filmmakers. The idea, design, function and feel are right in line with the Apple iPod. As US based PC Magazine’s Tim Bajarin writes: “Apple TV could make moving computer content around the house another mainstream digital activity” .

4 Answer to Question 4
4.1

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