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Apple Computer, Inc.: Maintaining the Music Business

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Submitted By dprevatte
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Apple Computer, Inc.: Maintaining the Music Business
While Introducing iPhone and Apple TV

Donna Prevatte

Instructor: Jacinta Acquay

BUS499 Sr. Seminar in Business Administration

31 January 2012

Apple Computer, Inc. changed online music tremendously in 2003 by developing the first legal online music service known as Apple’s iTunes Online Music Store. They were first online music service to have agreements with all five major record labels. Although initially available only for Macintosh users, iTunes sold more than 1 million songs by the end of its first week in operation (Hitt, Ireland, & Hoskisson, 2011).
Describe the key strategic challenges facing Apple Computer. Apple Computer, Inc. is currently a very innovative company. It has gone through many ups and downs over the past thirty years. From a successful company that brought in millions thanks to two guys, a garage, and a dream, to Steven Jobs, one of the founders, walking away from the company and in the process causing competitors to acquire ideas due to legal mistakes. Eventually, Apple came back, thanks to Jobs rejoining and also because of the introduction of iTunes. But securing their information from this highly competitive industry is just one of their challenges. Apple saw a way to capitalize on the emerging trend of cheap music downloads by creating a legal online music distribution network. iTunes would be the key to exploiting the market (Hitt, Ireland, & Hoskisson, 2011).
Steve Jobs has been known, by companies that work with Apple, to be very controlling. Perhaps this is because of his previous mistakes. Now that he has accomplished so much, he cannot afford to have a slip up. He wants his company to be ahead of its competition and being in control of the production is a challenge that he cannot afford to fall short on.
Another challenge is new

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