The Making of I Pod

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This presentation talks about the making of I Pod. How Apple did a breakthrough in Music Industry. It also talks about the future it might face in the future.

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The Making of I Pod

  1. 1. The Making of iPod Group A2 T A Pai Management Institute, Manipal
  2. 2. Old Music Value Chain Manufact DistributArtists Publishers urers ors Customers Retailers
  3. 3. Digital Music Value Chain Artists Publishers RetailersMusicians Customers
  4. 4. Forces in Music Industry Threat from New Entrants Buyers’ Bargaining PowerNew MP3 players firms entering New market, buyers do not havemarket many good optionsHigh Low Threat from Competitors All new players in digital music LOWSuppliers’ Bargaining Power Threat from substitutesPublishers have copyrights of Emerging new ways of providingcontents music listeningHigh Medium
  5. 5. Factors• Disruptive technology – Portable Music - MP3• Return of Steve Jobs to Apple• Apple’s focus back on music industry after ignoring it and realizing its importance• New memory technology – Toshiba’s 1.8 inch drive• ‘Mediocre’ portable music value chain• Apple’s innovative culture
  6. 6. iPod KSFs• Apple’s high speed data transfer technology• Innovative culture ‘with focus’, under Steve Jobs• Clear Segmentation, Target and Positioning• Apple’s ‘A’ team• Apple’s presence in multiple places in the value chain
  7. 7. iPod KSFs• Elegant designs• Prototyping process• Apple’s Ecosystem – collaboration of iTunes Music Store, iTunes, iPod and OS of iPod
  8. 8. Apple’s ecosystem Artists iTunes Publishers iTunesMusicians Music Store Apple’s collaboration Apple’s iPod products
  9. 9. Challenges with Recommendations• Imitators/rivals will catch up with similar products – Continuous innovation in the iPod product• Competition from rivals (like Microsoft etc) entering into online music market – Improved nexus with contents’ publishers
  10. 10. Challenges with Recommendations• Moore’s law: Increased computing power and smaller memory chips/drives – Apple should keep a watch at other possible gadgets that serve the need of listening to music - Investment in innovation• Emergence of a new music value chain – e.g. online subscription to listening to music – Strengthening of the ecosystem, online listening of music in iStore itself

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