Apple and the Music Industry
(10 pages of text)
Case (Pub Mat)
In 2001, Apple, Inc. (Apple), known mainly as the maker of a niche personal computer and related operating system and software, became a disruptor in the music industry with the launch of the iPod music player; it followed up two years later with the launch of the iTunes Music Store (iTunes). Over the next several years, the company struck deals with major music recording labels to distribute downloadable music legally through iTunes, challenging an industry-wide decline in a climate of widespread digital file-sharing and piracy. In 2007, it brought about increased sales of digital music downloads after launching the iPhone. However, by 2019, consumers were mainly consuming music via streaming services such as Spotify, Google LLC’s YouTube, Amazon.com Inc., and Pandora. What would Apple need to do to continue as a leader in the music industry?
This case is suitable for undergraduate- and graduate-level courses on strategy. Although the music industry is unusual, its digital challenges and opportunities mean that many other industries view it as leading-edge. As a complex and leading-edge industry, it provides an ideal backdrop for a detailed examination and application of industry analysis models. After working through the case and assignment questions, students will have developed their ability to do the following:
- Explain how to apply various models of industry analysis.
- Identify the various factors that contribute to dynamic change in an industry.
- Link industry analysis to strategic position and strategic choice.
- Explain how to make strategic choices in a dynamic industry.
Information, Media & Telecommunications
United States, Large, 2019
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