Hi, I need help with essay on Microeconomics Factors: Apple i-Tunes. Paper must be at least 2500 words. Please, no plagiarized work!
The digital music market is a rapidly expanding field in the music industry. There is also a convergence of the music industry with mobile communications. This area has registered a highly pluralistic growth trajectory in the past decade or so. In fact, digital music platforms and deliverable architectures now account for around 20% of recorded music sales and this trend is bound to increase further in the coming years. Surveys have proven that over the years the demand for digital music has increased by manifolds. Apple iTunes’ market entry strategy into the UK is more likely to succeed if carried out with much more concentration on customer satisfaction and value creation fronts while at the same time focusing on a market penetration pricing strategy coupled with incremental growth strategies in niche market centric operations (www.apple/tunes.com).
Apple i-tunes digital music company is in an oligopoly market with a limited number of competitors including Sony, Warner, BMG and so on. An oligopoly is a market form where there are a few numbers of suppliers with similar identical products. Thus the digital music industry is evolving very fast. There is always the threat of a new company introducing something totally new to the market such as wireless technology that could replace the need for a physical music player. It’s of paramount importance for Apple iTunes to invest a lot in research, and development and marketing in order to keep up with other companies that could introduce newer products to the market. Apple iTunes could improve the quality of their products. Then due to the greater quality of their music files, manufacturers of MP3, 4, 5 players would be compelled to manufacture their products to make them compatible with these files, because customers would be lured to buy Apple iTunes as they are of superior quality. The popularity of iPod and Apple Mac are subject to demand. If economies are negatively affected the demand for these products would fall.