Essays on Apple Inc.: iPod and iTunes Assignment

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The paper "Apple Inc. : iPod and iTunes" is a great example of an assignment on information technology. The iPod has been touted as a reflection of Apple’ s innovative mastery (Ashcroft 2011, p. 7). Launched into the consumer market in 2001, the iPod had innovative design and functionality ideas never again seen in the market (Ashcroft 2011, p. 7). As a mixed digital multimedia device, the iPod was soon complemented with the release of the iTunes in 2003. In the description, iTunes refers to software that enables consumers to enjoy digital media downloaded to their computers and into their iPods.

Through the iTunes platform, consumers can buy, organize, and playback different media files which could include podcasts, music, videos, and photos among others. A PESTEL (Political, Economic, Social, Technological, Environment, and Legal) analysis on the iPod and iTunes would reveal the following: Political: As a US-based firm, whose target consumers are in and outside the US, Apple has had to develop and release different versions of iTunes in an effort to ensure that such versions comply with the territory- or country-specific copyright laws (Herrera 2006, p.

205). Economic: With the US and European countries being its main target markets, Apple’ s products have been highly favored by the well-performing economic environments therein. The relatively cheap price of downloading music ($0.99) on iTunes has made it a popular online retail outlet for consumers (Chapman & Hoskinsson 2008, p. c-16). Social-cultural: The social-cultural environment in Apple’ s target market is such that technologically is being received eagerly by different demographics. For example, the iTunes store is increasingly being perceived as a central portal from where consumers from different geographical locations can access their favorite music (Chapman & Hoskinsson 2008, p.

c-17). Technology: The targeted markets (especially the youth) are always tech-savvy, and have thus embraced the new development in both the iPod and iTunes. Since its launch, the iPod has undergone much technological enhancement thus its revolution from just a music-listening gadget to a gadget with which people can watch videos and download music. More recently, iPods are GPS-enabled thus meaning that people can use them in cars to find directions. Environment: Operating in an environment-conscious society has affected the manner in which Apple conducts its production processes.

Apple stated that it is reducing toxic substances from its product, and is on record for recycling iPods and Macintosh PCs in different countries where it has established its presence (Apple Inc. 2013). Legal: Apple found a way of managing some of the legal issues concerning iTunes by making a deal with record companies that enabled consumers to download music from iTunes without infringing copyright laws in the US (Crossan & Mark 2005, p. 128). It however remains a challenge to handle record labels in other countries because of differences in copyright laws thus meaning that consumers may not access everything they may desire from the iTunes platform. The above analysis relates to porter’ s five forces because firms often have to deal with all market dynamics in the macro-environment and the micro-environment.

While the PESTEL analysis is ideal in the macro-environment, Porter’ s five forces is a good analytical tool for a firm’ s competitive industry. In other words, the two analysis tools need to be used together for purposes of understanding both the micro and competitive environments that a firm is faced with.

References

Apple Inc. 2013, ‘The story behind Apple’s environmental footprint’, viewed 23 Jan. 2013, < http://www.apple.com/environment/#recycling>.

Ashcroft, J 2011, ‘Apple in the digital age from the iPod to the iPad- Apple Inc. the case study 2000-2010’, pp. 1-25, viewed 23 Jan. 2013, .

Boddie, J 2005, ‘Has Apple hit the right disruptive notes?’ Strategy & Innovation, vol. July-August, pp. 3-4.

Chapman, R & Hoskisson, R E 2008, ‘Apple computer inc.: Maintaining the music business while introducing the iPhone and Apple TV’, In RD Ireland, RE Hoskisson, & MA Jitt (Eds.), Understanding business strategy: concepts and cases, pp. c-13 – c-28, Cengage Learning, Mason, OH. .

Dolata, U 2012, ‘The music industry and the internet- a decade of disruptive and uncontrolled sectoral change’, Research contributions to Organizational Sociology and Innovation studies, viewed 23 Jan. 2013, .

Herrera, G L 2006, Technology and international transformation: the railroad, the atom bomb and the politics of technological change’, SUNY Press, New York.

Ireland, R D, Hoskisson, R E, & Hitt, M A 2008, Understanding business strategy, Cengage Learning, Mason, OH.

Jobs, S 2007, ‘Thoughts on music’, Apple Inc., viewed 23 Jan. 2013, .

Crossan, M & Mark, K 2005, ‘Apple Computer, Inc.: iPods and iTunes’, In Crossan, M. M., Bansal, P., Killing, P., White, R.E., & Zietsma, C (Eds), Strategic Management- A case book , Eighth edition pp. 121-136, Pearson Education, Toronto.

Sawayda, J 2011, ‘Apple Inc.’s ethical success and challenges’, Daniels Fund Ethics Initiative, University of New Mexico, pp. 1-8, viewed 23 Jan. 2013, .

West, J & Mace, M 2007, ‘Entering a mature industry through innovation: Apple’s iPhone strategy’, Paper presented at the DRUID Summer Conference, Copenhagen, Denmark, June18-20, pp. 1-41.

Yoffie, D B & Kim, K 2011, ‘Apple Inc. in 2010’, Harvard Business School, pp. 1-25, viewed 23 Jan. 2013, .

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