Apple Case Study :
Apple ipod
In 2003, Apple introduced the iPod
with the iTunes store, revolutionizing portable entertainment, creating a new
market, and transforming the company. In just three years, the iPod/iTunes
combination became a nearly $10 billion product, accounting for almost 50% of
Apple’s revenue. Apple’s market capitalization catapulted from around $1
billion in early 2003 to over $150 billion by late 2007.
This success story is well known;
what’s less well known is that Apple was not the first to bring digital music
players to market. A company called Diamond Multimedia introduced the Rio in
1998. Another firm, Best Data, introduced the Cabo 64 in 2000. Both products
worked well and were portable and stylish. So why did the iPod, rather than the
Rio or Cabo, succeed?
Apple did something far smarter than take a good technology
and wrap it in a snazzy design. It took a good technology and wrapped it in a
great business model. Apple’s true innovation was to make downloading digital
music easy and convenient.
To do that, the company built a groundbreaking business
model that combined hardware, software, and service. This approach worked like
Gillette’s famous blades-and-razor model in reverse: Apple essentially gave
away the “blades” (low-margin iTunes music) to lock in purchase of the “razor”
(the high-margin iPod). That model defined value in a new way and provided
game-changing convenience to the consumer.
Please read the main article about innovative business Models Here
Please read the main article about innovative business Models Here
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