A Market Analysis: iPod

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Dominant firms within the industry, those which have a high profile and which are usually those which set standards and competitive precedents, have an important role to play in ensuring that price competition does not result in a price war. Apple is a leader in computers and information technology.


Customers and technology are the primary driving factors in this arena. Customers want products that satisfy their needs or improve their productivity. Apple, and its direct competitors, look for ways to deliver these benefits at a lower cost, smaller size, and higher speed. An industry with this kind of rapid change presents several challenges for digital music devices, namely production costs, intellectual property owners, and monopolies (Hesseldahl, 2006).
Innovation can be seen as a strength and opportunity which shapes the market and allows companies to obtain a strong market position. Creativity and innovation are the core part of market. Once a new product has proven itself in the marketplace, other companies seeking to benefit from the first-mover's success quickly emulate it. In order to be successful, Apple follows the principles: focus on the user, use standardized technology, or complement existing technologies. The industry of digital music devices is highly competitive, very dynamic, and global one. The main strength of Apple's iPod is that it has 90% of the hard drive market (Appendix Diagram 1, 2). Apple must look for new trends in business development. Accessories for these types of products are the next major market in the electronics industry. ...
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