Consulting: Apple Corp.

1
Consulting Apple Corp.
FYBU

• Tammy Nguyen
• Chris Davis
• Chase Donnelly
• Sean Norman

2
Issues, Challenges, Problems

• Themes Product Growth and Market Share
• Minimal track availability within iTunes
• No barrier for competitive entrants
• Lack of reason to adopt iTunes over current
  competitors (legal and illegal)
• Only available on Macintosh devices
• Artists betrayed illegal services do not want to
  be hassled by legal options

3
External 5 forces

• Threat of Entry
• Threat of Rivalry
• Threat of Substitutes
• Threat of Suppliers
• Threat of Buyers

4
Internal VRIO

• Value
• Rarity
• Imitability
• Organization

5
Strategic Options

• Capture Market Share before Competition
• Option 1
• Create exclusive contracts with record labels for
  premium content
• Expand the breadth of content availabilty
• Option 2
• Convert files to the popular file format
• Promote usage on all devices (PC, portable, and
  Mac)

6
Tradeoffs

• Option 1
• Limited expandability to other devices
• Gain market share through exclusive hook
• Option 2
• The ability to steal tracks is more prevalent
• Service is compatible with all current devices
• Lack of specific track availability

7
Recommendation

• Implement Option 1
• Exclusive Artists
• Add to existing interface

8
Implementations Conclusion

• Focus engineering team on upgrading interface
• Build the interface for exclusive content
• Implement Option 1 into Apple iTunes
• Future, implement Option 2
• Questions ?