Free Custom «Music Entertainment» Essay Paper

- Economies of scale: R&D usually forms the major part of the companies cost of production. In the sector, the R&D cost of the technology devices is approximately 12% of the total revenues obtained by the IT industry, in the U.S.

 

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- Product differentiation: Apple’s PC has its own operating system and the unique design

- Cost advantage: High demand particularly in proprietary technology.

- Since iPod nano launched, some competitors such as Roi and Olympus had preferred to stop.

- Economies of scale: iPod has 80% of market share and Apple contacted with giant corporations such as Samsung to buy approximately 40% of the products and services such as flash memory production, which is more expensive than a hard drive.

- Product differentiation: Ipod has its own music stores such as the iTunes, which allows customers download music conveniently. The complete set of Ipod, iTunes, and the accessories for iPod.

- Cost advantage: High demand in proprietary technology. Apple has several patents for Ipod and favorable access to raw materials by the contact with Samsung

- Economies of scale: High demand in R&D and marketing (Currently, the cell phones come with al lot of adds-on like camera, voice recorder, speaker phone, MP3player and FM receiver. The products produced by the company also inbuilt memories used to record and retain pictures as well as voices to assist in facilitating easy download to a computer)

- Product differentiation: some of the products manufactured by Apple, such as, the iPhone have some unique features like the add-on functions. These are created for the company’s technology for the MP3 player PC and computers.

- Cost Advantage: the company has high technology standards for their properties as well as a better access to product used in the manufacture of their items.

- There are relatively few competing firms compared to other corporations in other sectors. However, in this industry, Bill Gates’ company, Microsoft, has a larger proportion of the market share.

- The industry has some of the lower priced personal computer makers, such as, Dell. These companies have been increasing their productivity in the market

- There are various competing firms such as Samsung, Sony, I-River, but Apple’s iPod maintains over 80% of the market share.

- If Apple does not the creativity and innovation standards high, the products produced by the rival companies which are lower in price than Apples products, for instance, Ipod can be a threat in anytime

- The threat faced by the company is on the suppliers of the raw materials as well as labor. The company operates in an area that is highly proprietary in innovation and creativity in technology and has power and the ability to influence to influence the price.

Apart from the threat of labor there are relatively very many types of suppliers for the raw materials

- The raw materials from the suppliers can also be a significant threat. On the other hand, labor can be the threat, but the supplier who are singers, players, or songwriters.

- The other major threat Apple faces includes the free music downloads that affects the music industry. These are illegal free music download websites. The songs are easy and cheap to access to MP3 files, but forms a major threat to the iTunes.

- Today’s Phone industry experiences many functions that includes calling and receiving messages. There are various types of suppliers for the products such as cameras and video players.

- Apple Inc. is a well-established corporation that deals with computers. MP3 mostly deals with internal suppliers.

- The customer base of the company is big and increasing with new technologies produced at produced at a fast pace.

- Apple differentiated by its own operating system and unique design, but other companies such as Dell or HP differentiate by lower price marketing

- The number of customers is increasing. Their numbers rise as their demands since; they keep demanding new and updated products.

- The speed of the internet as well as the Internet file providers is creating new environments that encourage the development environments that may attract the MP3 buyers.

- iPod has relatively loyal customers