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Affected of Ipod on the Industry

In: Business and Management

Submitted By nookandabook
Words 2019
Pages 9
E-Business Technologies

The affects of the iPod on music industry

Table of Contents

Section 1: Introduction Page 4

Section 2: Technology Adoption Page 4

Section 3: Value Chain Page 5

Section 4: Relationships Page 6

Section 5: Conclusion Page 7

Section 6: References Page 7

Introduction

The purpose of this report is to discuss the functions and features of Apple’s innovative MP3 player. I will be relating to the Schumpeterian model, as to how the iPod led to rapid mainstream adoption, whilst similar products failed. I will also consider the opportunities which promoted this device and the challenges that the Apple iPod currently face, highlighting the effects on the traditional music industry value chain, compared to the current value chain. In addition, I will discuss how the iPod developed working relationships which has assisted in Apple’s e-business success. I will then finish by concluding my findings.

Technology Adoption

The Schumpeterian model looks at the relationship between technological innovation and business activity. According to Perez (2002) there are five typical stages of each wave, which I will briefly describe.

Irruption
The Apple iPod was launched in 2001, a sleek and stylish MP3 player with an easy user interface, compressing digital audio files the iPod holds up to 1,000 songs and fits neatly in your pocket. The iPod also came in two storage sizes set at two different prices, which created affordability for a wider range of customers. The success of Mac computers provided Apple with a good fan base.

Frenzy
In 2002, Apple introduced the second generation iPod, with a touch-sensitive wheel, holding up to 4,000 songs and now compatible with Windows. Content that

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