The Creation Of Itunes Commerce Essay

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The creation of iTunes has formed a completely new identity for apple. The iTunes desktop software and iTunes store differentiates apple from its competitors and reinforces customers decision to choose apple.

Apples stores provide potential customers with a rich in site into the variety of apples products with experts on hand to promote the products. - increases customers exposure to its products.

The high focus in apples research and design provides us with highly sophisticated and easy to use apple products.

The one few PC firms that has adopted both horizontal and vertical integration.

Apple ingeniously created an ecosystem of products contributing to the firm's revenue and enhancing its product marketing

Apple Inc. has purchased itself foreign currency, to minimize the economic effects of inflation

Apple is the globally seen as the King of technology, not because of most usage, but quality and design.

ITunes is well ahead any other competition of this direction.

Apple's image portrays the modern individual's lifestyle, combining functionality with design, leading to brand identification and loyalty.

Investing largely in Research and Product Development, Apple is on top of the market, regarding innovative products

The increase in focus on global warming and carbon footprint s has given customers a more eco view on products they buy.

Weaknesses

Threats

With the large investment of apple going in R&D apple have had to price their products at a premium price. So the product is seen to be more overpriced compared to its competitors' prices.

A lot of Apples success has been linked with the leadership and creativeness from their CEO Steve Jobs. During 2011 Jobs died of cancer and the strength of apples share and reputation has weakened due to this.

With the successful mass appeal of Apple's products, it has become increasingly difficult to fully incorporate the various desires and expectations of consumers into the various devices

Bad international relations, terrorism and wars can impact on Apple's sales outside America.

Political conflict between America and other nations can affect apples manufacturing, as a majority its manufacturing occurs outside America.

Global economic depression causes a major effect on Apple Inc. and customers are less willing to pay out for expensive luxury products.

The high intensity of competition and innovation has created a very short product lifecycle.

Illegal music downloading has become a major strait in apples development of ITunes.

Patent row - Samsung

Political:

Political factors that the pestle may look into is the policy's the country's government may be following in order to control and improve the financial and social status of the nation. Politics plays a massive role in the business world as it controls what happens with the internal factors within the country like education, trading, logistics, advertising, etc. The political relationships between other nation's governments also play a vital role within our firm.

The sales of Apple Inc. products within the U.S are becoming less commercially important due to the strength in sales of Apple products outside the U.S. "63% of IPhones were activated outside the U.S last quarter" [i] .so global affairs such as war/terrorism/bad public relations can really affect apples sales dramatically. - Apple cannot control this outcome.

Apple Inc. products may get designed in the U.S but many of the products that go into manufacturing and even manufacturing the final product are produced outside the U.S. so again if global relations between the U.S and these countries were to break down a major disruption within Apples business activity can occur. [ii] 

Threat

Threat

Economic:

Economic factors play a key role in the production of your firm. All companies are set up to create profit/money, the strength of your company's and nations financial strength is what defines whether your company succeeding or not, or how well your company reacts to bad economic structures. Economics is always changing and your firm must learn to adapt to and with these changes to succeed. Factors that affect the economic markets are interest rates, taxation, economic growth, inflation and exchange rates.

The global economic depression has had a severe impact on Apple. High inflation rate means prices have risen here incomes have not. Hugh unemployment has also occurred. So people are less willing to spend money on luxury goods which Apple is selling. - We are just leaving the recession.

Due to the recession the U.S. dollar has lost its value dramatically. But Apple have worked their way round this, and keeping the value of its sales up by converting to a foreign currency,

Threat

Opportunity

Social:

The changes in the public trends can play a massive impact of the demand of firm's products and their willingness to buy them. Trends that can be associated with the social factors can vary from changes in cultural trends, demographics, population, etc. often social trends can even change during various different seasons in the year.

Globalisation has caused a major impact on our social life toda and technology has now taken over. People today have to be connected with one and another through all forms of technology. And Apple is seen as the best at producing the technology to do this, with its top quality and designed products.

The virtual media has a major influence on our lifestyles today, and everybody is nowe downloading everything. Apple ITunes has been developed and is the biggest virtual media database and store. - Worry of illegal downloads.

Apples brand image portrays the modern lifestyle; it produces products that are stylish and practical.

Opportunity

Opportunity

Opportunity

Technological:

The development of new technologies can help improve existing models, create new products and new processes and build completely new markets. The advances in technology have helped to reduce costs, improve quality and leads to high innovation. The increase in new technologies doesn't just help organizations with improved products/services but consumer's way of living.

Due to the high innovation and development of new technologies and products the market is becoming huge. Competition within the market is very intensive and new products are being developed/ released all the time. So the product lifecycle is very short.

Apple uses high investment within its R&D, so Apple's innovation is driving them to the top of the market. This sets a trend for competitors to follow, so keeps apple on its toes to keep on producing newer and innovative products.

Threat

Opportunity

Legal:

Here we look into how the legal systems work within your organisation and how changes in the system may affect your business. Laws such as age discrimination and minimum wage acts play a major affect in the production of all businesses. Legal changes can play a major disruption on your firm's costs (if new systems or procedures have to be developed or introduced) and demand (laws can affect the likelihood of the consumer buying the product/service).

Illegal music downloading has become a major strait in apples development of iTunes. A majority of apple customers no longer use apples iTunes and instead download their tracks illegally for free, where there is little legislation.

Apple have taken Samsung to court accusing them of breaching apples patent of their IPhone 5 with Samsung's new model release

Threat

Threat

Environmental:

These are factors that affect your organisation rom the weather and climate change. With the massive focus on climate change from global warming and globally all consumers are more aware and want to stop this your firm must look into creating products that do less damage or even help to the environment. There is a massive demand now for environmentally friendly products.

The increase in focus on global warming and carbon footprint s has given customers a more eco view on products they buy.

Opportunity

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