In recent times, the MP3 player industry got immense attention of the business sector as many stakeholders attained huge profitability from this particular development. It is noteworthy to mention that that time-period of 2005 recognized as the one most crucial phase referring to the business growth of the specific industry of MP3 player. Various companies involved in the whole scenario that refer to the consideration of the competition in the business. The time frame of 2005 is important to identify and critically analyze because it was the time when many MP3 players involve in the manufacturing of the product and enter into this business. It is vital to explore the historical background of the development of the MP3 player industry. The prospect of MP3 player growth is started when Apple launched legendary iPod in the market. It was one great turning point in the music industry as it gives new paradigms and listening experience to the customers ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"nMlumj78","properties":{"formattedCitation":"(Fox, 2005)","plainCitation":"(Fox, 2005)","noteIndex":0},"citationItems":[{"id":1561,"uris":["http://zotero.org/users/local/lMSdZ3dY/items/EP5C7MZT"],"uri":["http://zotero.org/users/local/lMSdZ3dY/items/EP5C7MZT"],"itemData":{"id":1561,"type":"article-journal","title":"Technological and social drivers of change in the online music industry","author":[{"family":"Fox","given":"Mark"}],"issued":{"date-parts":[["2005"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Fox, 2005). Different forms of technological innovation adopted by the business companies in the manufacturing of the MP3 player turns the situation of competition in the industry. Here the particular focus is to critically analyze the aspect of competition in the MP3 player industry in 2005 with the help of business analysis to recognize main issues and propose appropriate solutions.
Assessment of Internal and External Factors
It is observed that there were many companies that manufactured the product of MP3 player for its customers but Apple, Archos, Creative, Dell, iRiver, SanDisk, and Sony recognized as the major names that captured a huge share of the market. Statistics of the market indicate that Apple marked the first position in the market when it comes to attaining an immense form of profit from its product. The continued success of the MP3 player business referred to the proper consideration of the elements of increasing song capacity, proper availability and compatibility with the online music stores, unit battery life, and the physical size of the product. The increasing demand for the product eventually makes it essential for the companies to adopt advance aspects of manufacturing to preserve their market share ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"TowJlgwG","properties":{"formattedCitation":"(Olson, Slater, & Hult, 2005)","plainCitation":"(Olson, Slater, & Hult, 2005)","noteIndex":0},"citationItems":[{"id":1560,"uris":["http://zotero.org/users/local/lMSdZ3dY/items/VNTDME83"],"uri":["http://zotero.org/users/local/lMSdZ3dY/items/VNTDME83"],"itemData":{"id":1560,"type":"article-journal","title":"The importance of structure and process to strategy implementation","container-title":"Business horizons","page":"47-54","volume":"48","issue":"1","author":[{"family":"Olson","given":"Eric M."},{"family":"Slater","given":"Stanley F."},{"family":"Hult","given":"G. Tomas M."}],"issued":{"date-parts":[["2005"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Olson, Slater, & Hult, 2005). Growing competition of the industry referred to many business concerns for the major stakeholder in the form of Apple. Identification of the main issue is possible through the adoption of different forms of business analysis.
SWOT Analysis
The business entity of Apple identifies as the main shareholder concerning the growing idea of the development of the MP3 player industry. Assessment of the main aspects of the organization is essential for the management to intact its hold in the market in the form of huge market share ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"iMT5wd98","properties":{"formattedCitation":"(Hitt, Ireland, & Hoskisson, 2012)","plainCitation":"(Hitt, Ireland, & Hoskisson, 2012)","noteIndex":0},"citationItems":[{"id":1563,"uris":["http://zotero.org/users/local/lMSdZ3dY/items/5K32HYNM"],"uri":["http://zotero.org/users/local/lMSdZ3dY/items/5K32HYNM"],"itemData":{"id":1563,"type":"book","title":"Strategic management cases: competitiveness and globalization","publisher":"Cengage Learning","ISBN":"1-285-22577-5","author":[{"family":"Hitt","given":"Michael A."},{"family":"Ireland","given":"R. Duane"},{"family":"Hoskisson","given":"Robert E."}],"issued":{"date-parts":[["2012"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Hitt, Ireland, & Hoskisson, 2012). The business domain of the organization can observe through the consideration of the SWOT analysis.
SWOT Analysis of Apple
Strengths
Brand
Customer loyalty
Weaknesses
Pressure to increase the price
Opportunities
Development of iTunes
Music player technology
Threats
High level of competition in the market of technology
Strengths
As the major company functions in the industry, Apple has the edge to influence the market in many forms. Undoubtedly, the brand name of Apple in the form of iPod attract many customers that make the organization’s position strong as compare to its competitors.
Weakness
It is observed that the company have huge pressure to increase the price level concerning the idea of technological advancement. It refers to the idea of increasing price from the feature of download music as many organizations achieve high-profit level from the paradigm of iTunes.
Opportunities
When it comes to the approach of the opportunities for the organization of Apple, then the development of the iTunes is one major feature that can enhance profitability level for the company. Apple has the potential to develop music technology in the mobile phone format.
Threats
The increasing rate of the competition of the market is the major threat for the organization of Apple. Apple needs to work hard in advance research and development sector to gain more share of the market through attract many customers as compare to its competitor organizations.
Porter’s 5 Forces of Competition
It is important to identify the actual functioning of the industry to attain a better understanding of the related issues of the MP3 player industry. The approach of Porter’s 5 forces of competition analysis is one significant aspect to determine the actual market position. Proper implementation of the theoretical idea of Porter’s 5 forced models indicates internal rivalry as the major feature prevails in the MP3 player industry. The prospect of competition is extensively high in the market because many stakeholders actively involved with this business with the objective of profit maximization. The threat of the entry of the new companies in the market is another major force that influences the aspect of competition to existing in the MP3 industry. Low cost of the material and high product margin have the capacity to attract new companies towards the industry of MP3.
The bargaining power of suppliers recognized as the third major market force that influence the trend of the industry in a great manner. The approach of suppliers reflects in the forces of flash memory, hard disk, semiconductor, and many other important elements. The power of buying can also never be ignored as it refers as the fourth force referring to the idea of the business of MP3 player. It is important to mention that this particular force recognized as the low domain referring to intensity as mostly product and brand recognition influence the operations of the business of MP3 player. The aspect of the alternative product also identifies as the major market force which is necessary for the process of industry analysis. The risk of the substitute product is not really high as it is difficult to meet the uniqueness of the technological advancements offered by business organizations.
Competitive Analysis
The feature of the competitive analysis can better determine through the help of weighted strength assessment. It refers to the adoption of the different success factors associated with the market of the MP3 player industry. Proper evaluation of the factors of hard drive player and flash player portions provides a better understanding of the idea of expertise for the business organization ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"jdBsHcG1","properties":{"formattedCitation":"(McLeod, 2005)","plainCitation":"(McLeod, 2005)","noteIndex":0},"citationItems":[{"id":1562,"uris":["http://zotero.org/users/local/lMSdZ3dY/items/WKJ3429C"],"uri":["http://zotero.org/users/local/lMSdZ3dY/items/WKJ3429C"],"itemData":{"id":1562,"type":"article-journal","title":"MP3s are killing home taping: The rise of Internet distribution and its challenge to the major label music monopoly","container-title":"Popular Music and Society","page":"521-531","volume":"28","issue":"4","author":[{"family":"McLeod","given":"Kembrew"}],"issued":{"date-parts":[["2005"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (McLeod, 2005). The phenomenon of expertise identifies through the paradigms of ease of use, reliability, and the great quality of the product. The factors of innovation and proper branding of the product are also essential and crucial features concerning the idea of industry analysis for the business of the MP3 player industry.
Problem Identification
The approach of the different forms of market analysis is adopted to critically identify the main problem and propose a better solution to handle the issues in an effective way. Different forms of assessment of the industry reveal that growing competition in the MP3 player industry is a major concern that influenced by many factors. It is essential to consider the features that enhance the risk of the losing market share for the business companies. Referring to the particular case of Apple, competition is a major concern or problem that may affect its market hold. Apple recognized as the industry leader by launching innovative products in the form of iPod to its customers. Different forms of threats prevail in the market make it difficult to intact its strong position in the market.
Possible Solutions
Consideration of the possible solutions concerning the main problem is integral to better handle the domain of growing competition in the industry of MP3 player. A thorough analysis of the market makes it easy to propose solutions according to the actual need of the market. Proper development of the price strategy is one effective solution for the company to decrease the magnitude of the problem of industry competition. When organizations offer products with good and innovative functions with low quality than it ultimately attracts many customers. Adoption of the new technological ways to make the product attractive for the potential customers is another important aspect referring to the better domain of the business profitability.
Offering better functions through the utilization of technological innovation further helps organizations to use this approach to deliver better products. Proper adoption of the pace of the technological change is mandatory to handle the changing perspectives of the market. It is viable for the business entities to offer to change methods to deliver the quality approach of music to the customers in an effective and efficient manner. Enhancement of the ideas of brand recognition and loyalty also effective solutions to handle different risks of the market competition.
Best Solution
In conclusion, it is essential to identify the most feasible solution to positively handle the growing phenomenon of competition exists in the MP3 player industry. The role of the proper price strategy can never be ignored as it guarantees the better profitability level for the business firms. It is significant for the business entities to establish the price of the product that targets a huge number of customers. The approach of the merger is an effective solution for companies to attain a better idea of business competitiveness.
References
ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY Fox, M. (2005). Technological and social drivers of change in the online music industry.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2012). Strategic management cases: competitiveness and globalization. Cengage Learning.
McLeod, K. (2005). MP3s are killing home taping: The rise of Internet distribution and its challenge to the major label music monopoly. Popular Music and Society, 28(4), 521–531.
Olson, E. M., Slater, S. F., & Hult, G. T. M. (2005). The importance of structure and process to strategy implementation. Business Horizons, 48(1), 47–54.
