Competition in the Mp3 Player Industry
Table of Contents
1.0 EXECUTIVE SUMMARY 2
2.0 INDUSTRY FORECAST: OUTLOOK AND TRENDS IN DATA 2
3.0 PORTER 'S FIVE FORCES ANALYSIS 3
COMPETITION IN THE MP3 PLAYER INDUSTRY 3
3.1. Rivalry Among Competing Sellers of MP3 Players 4
3.2 Threat of Potential New Entrants into the Manufacturer of MP3 Players 5
3.3 Firms in Other Industries Offering Substitute Products for MP3 Players 6
3.4 Suppliers of Materials, Parts, Components, or Other Resource Inputs for MP3 Players 7
3.5 Buyers of MP3 Players 7
4.0 DOMINANT ECONOMIC FEATURES 8
5.0 COMPETITOR ANALYSIS 9
Differentiation, price and innovation 9
Profitability 10
Other competitors 10
Conclusion 10
6.0 FORCES DRIVING INDUSTRY CHANGE 10
APPENDIX A 12
Figure 5.0 THE FIVE-FORCE MODEL OF COMPETITION 12
APPENDIX B 13
Hard drive based players 14
Table 5.1a 14
Table 5.1b 15
Flash based players 16
Table 5.2a 16
Table 5.2b 17
Table 5.3 18
Strategic Group Map 19
Ranking of MP3 players for 2005 19
APPENDIX C 20
SWOT Analysis - Apple versus the competition 20
Apple’s competitors 20
BIBLIOGRAPHY 21
1.0 EXECUTIVE SUMMARY
2.0 INDUSTRY FORECAST: OUTLOOK AND TRENDS IN DATA
The macro environment in which the MP3 player industry operated during 2005 was by large shaped by the individual MP3 companies recognizing and responding to unmet needs of a trend that was largely boosted by Apple: Their innovative response to creating a solution for music lovers and their busy lives. This sequence of events within the MP3 industry was the formation of a trend that had gained momentum in 2005 and was showing clear signs of a durable future ahead. There appeared to be great opportunities for a whole cross section of this industry and it would depend on which companies crafted and executed strategy that would best strengthen their sustainable competitive advantages within this rapidly evolving industry. MP3 companies needed to understand the environmental background that influenced their strategic
1.0 EXECUTIVE SUMMARY 2
2.0 INDUSTRY FORECAST: OUTLOOK AND TRENDS IN DATA 2
3.0 PORTER 'S FIVE FORCES ANALYSIS 3
COMPETITION IN THE MP3 PLAYER INDUSTRY 3
3.1. Rivalry Among Competing Sellers of MP3 Players 4
3.2 Threat of Potential New Entrants into the Manufacturer of MP3 Players 5
3.3 Firms in Other Industries Offering Substitute Products for MP3 Players 6
3.4 Suppliers of Materials, Parts, Components, or Other Resource Inputs for MP3 Players 7
3.5 Buyers of MP3 Players 7
4.0 DOMINANT ECONOMIC FEATURES 8
5.0 COMPETITOR ANALYSIS 9
Differentiation, price and innovation 9
Profitability 10
Other competitors 10
Conclusion 10
6.0 FORCES DRIVING INDUSTRY CHANGE 10
APPENDIX A 12
Figure 5.0 THE FIVE-FORCE MODEL OF COMPETITION 12
APPENDIX B 13
Hard drive based players 14
Table 5.1a 14
Table 5.1b 15
Flash based players 16
Table 5.2a 16
Table 5.2b 17
Table 5.3 18
Strategic Group Map 19
Ranking of MP3 players for 2005 19
APPENDIX C 20
SWOT Analysis - Apple versus the competition 20
Apple’s competitors 20
BIBLIOGRAPHY 21
1.0 EXECUTIVE SUMMARY
2.0 INDUSTRY FORECAST: OUTLOOK AND TRENDS IN DATA
The macro environment in which the MP3 player industry operated during 2005 was by large shaped by the individual MP3 companies recognizing and responding to unmet needs of a trend that was largely boosted by Apple: Their innovative response to creating a solution for music lovers and their busy lives. This sequence of events within the MP3 industry was the formation of a trend that had gained momentum in 2005 and was showing clear signs of a durable future ahead. There appeared to be great opportunities for a whole cross section of this industry and it would depend on which companies crafted and executed strategy that would best strengthen their sustainable competitive advantages within this rapidly evolving industry. MP3 companies needed to understand the environmental background that influenced their strategic
Bibliography: Baye, M. (2006). Managerial Economics and Business Strategy 5th ed, Boston: Irwin/McGraw-Hill. Kotler, P. and Keller, K. (2006) Marketing Management 12th ed, Pearson, NJ. Thompson, A.A., Strickland, A.J., and Gamble, J.E., Crafting and Executing Strategy: The Quest for Competitive Advantage: Concepts and Cases, 15th ed, McGraw Hill Irwin, New York, 2007.