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Jelena KirillovaNadi Liis LaaneväliBoriss Laaneväli
PURPOSE• Identify the reasons of Apple success• Analyze the iPod business model  development• What are Apple’s swift growt...
Apple Inc.Product range from $59…$7,000   Electronics   Computers   SoftwareWorldwide sales   Retail stores   On-line...
iPod• iPod is a line of portable media players designed and  marketed by Apple and launched on October 23, 2001.
iPod Business Model I                Infrastructure                                   Offer                               ...
iPod Business Model II                Infrastructure                                      Offer                           ...
iPod Business Model III                Infrastructure                                      Offer                          ...
CONCLUSION
MuSky Business Model              Infrastructure                         Offer between                                   C...
MuSky            Wireless Audio Signal            Wireless Video Signal   Helmet with embeddedAuto Sync                   ...
How iPod was developed?
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How iPod was developed?

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How iPod was developed?

  1. 1. Jelena KirillovaNadi Liis LaaneväliBoriss Laaneväli
  2. 2. PURPOSE• Identify the reasons of Apple success• Analyze the iPod business model development• What are Apple’s swift growth key factors in global music area?• To learn how to grow fast and succeed
  3. 3. Apple Inc.Product range from $59…$7,000  Electronics  Computers  SoftwareWorldwide sales  Retail stores  On-line stores  Direct sales forceMost Admired*  2008 in USA  2008…2010 worldwide * by Fortune magazine
  4. 4. iPod• iPod is a line of portable media players designed and marketed by Apple and launched on October 23, 2001.
  5. 5. iPod Business Model I Infrastructure Offer Customer Partner Network Key Activities Value Customer Customer Propositions Relationships Segments OEM (Original  Hardware design „1000 songs in your equipment  Lovemark  Massmarket manufacturers):  Sofrware pocket“  Switching costs (Mac owners) Sony (battery)  Marketing  Simple & easy to use Wolfson (Codec/Dac)  Small size (lighter Toshiba (Disk drive) than cell phones) Texas Instrument (FireWire) Key Resources  Apple design Distribution „Music is part of Linear Technology (Power  More memory Channels everyones life“ management)  iPod hardware  Plays all music  Apple stores LG Display (LCD display) formats Synaptics (scroll wheel)  Apple brand  Apple.com  People  CD quality Record companies Marketing companies  Content & agreements  Fast file transfer  Fast battery charge Cost Structure Revenue Streams Variable costs: Fixed costs:  iPod sales (2002) - $143 millions or 2,5% / net sales  iPod  Music records  Music products (2002) - $4 millions  Software design  Marketing  Apps Store  Software licences Finance
  6. 6. iPod Business Model II Infrastructure Offer Customer Partner Network Key Activities Value Customer Customer Propositions Relationships Segments OEM (Original  Hardware design equipment  Lovemark  Massmarket: manufacturers):  Sofrware  Simple & easy to use  Switching costs  Teens (primary) Sony (battery)  Marketing  Ultraportable  iTunes  Younger adults to Wolfson (Codec/Dac)  Apple design age 29 (secondary) Toshiba (Disk drive) Texas Instrument (FireWire)  Fashion Linear Technology (Power Key Resources  Intuitive & Fun Distribution management)  Apps Channels LG Display (LCD display)  iPod hardware  Apple stores Synaptics (click wheel)  Additional features  Apple brand  Apple.com Record companies  Doc connector  iTunes store  People Marketing companies  USB  Electronic store  Content & agreements (BestBuy)  iTunes software  Windows support Cost Structure Revenue Streams Variable costs: Fixed costs:  iPod sales (2004) $1.3 billions – 15,8% / net sales  iPod  Music records  Music products (2004) $278 millions – 3,4% / net sales  Software design  Marketing  Software licences  App store Finance
  7. 7. iPod Business Model III Infrastructure Offer Customer Partner Network Key Activities Value Customer Customer Propositions Relationships Segments OEM (Original  Hardware design equipment  Lovemark  Massmarket: manufacturers):  Sofrware  Simple & easy to use  Switching costs  Teens Sony (battery)  Marketing  Apple design  iTunes  Adults Wolfson (Codec/Dac)  Smaller Toshiba (Disk drive)  Active people Texas Instrument (FireWire)  Apps Linear Technology (Power Key Resources  Accessories Distribution management)  iPod family Channels LG Display (LCD display)  iPod hardware  Apple stores Synaptics (touch wheel)  Co-products  Apple brand (Nike, HP, StarBucks  Apple.com Record companies , Car manufactures)  iTunes store  People Marketing companies  Electronic store  Content & agreements Car companies  Web store  iTunes software Cost Structure Revenue Streams Variable costs: Fixed costs:  iPod sales (2008) $9,2 billions – 24,5% / net sales  iPod  Music records  Music products (2010) $4,9 billions– 7,6% / net sales  Software design  Marketing  Software licences  App store Finance
  8. 8. CONCLUSION
  9. 9. MuSky Business Model Infrastructure Offer between Customer Partner Network Key Activities Value Customer Customer Propositions Relationships Segments Skydiving organizations  Becoming de facto  Entertainment during  Jumping with MuSky is standard for skydivers take-off time fun!  Professional Skydiving clubs  Entertainment between  Have-to-use Skydiving  Hardware design jumps Skydiving  Software development  Skydiving Enthusiast accessories  Integrated digital  Marketing altimeter manufactures  Integrated Audio/ Hardware Key Resources Video/Camera Solution Distribution manufactures  Cable Free Solution Channels Software  Hardware  Automatic sync with  Sports equipment shops manufactures PC  People  Skydiving sport clubs Marketing  Jumps History Analysis  Content & Agreements  Internet sales companies  3D jumps models Cost Structure Revenue Streams  MuSky sales Variable costs: Fixed costs:  Software sales  MuSky components  Hardware design  Accessories sales  Software design  Marketing  Maintenance  Audio/Video content sales Finance
  10. 10. MuSky Wireless Audio Signal Wireless Video Signal Helmet with embeddedAuto Sync wireless headset

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