An Apple A Day
Problem
How can the iPod keep its product dominance in the face of competition and technological advancement in the digital media player industry?
Facts and Assumptions
In the past, Apple's success has come from disrupting its competition with innovative and high-quality products. Its marketing history is based on showing how their product is easier to use than their competitors. However, they would ultimately ride on the coat-tails of their competitors' inventions. Thus, Apple's company history has had little experience in being a product leader and having a first-to-market advantage. With the invention of the iPod, Apple has, for the first time, succeeded in leading the digital media industry.
Because Apple has a reputation of creating high-quality products in the past, consumers can trust that the iPod will hold the same quality.
Apple may have problems dominating the digital media player industry, as it is used to being the comparative competitor.
It has taken less than six years to sell 100 million iPod units. It took Sony ten years to sell the same amount of cassette players.
The iPod, similar to the Walkman and the Discman, is a fad and could very easily be taken over by a new product in years to come.
Apple will not be able to dratically increase their dominance in the digital media player industry, as it is virtually impossible to increase an 80% market share. The competition will always hold a small portion of the market as they are producing comparable products.
iPod applications work specifically with iPods creating brand loyalty
The iPod currently has over 200 iPod accessories.
It holds product supremacy in the digital media player industry.
The iPod holds a significant amount of brand loyalty in the eye of the consumer.
Most technological leaders in the past...
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