iPod vs. Cell Phone: A Mobile Music Revolution

Case Study

94- Very good work.  Good conceptual layout.  Need to make this read less like your opinion and more like the distillation of your research/findings into some conclusions/recommendations that I think it really is.  Need to use 12-point type when that’s the prescribed #/type-size.  Need to seriously think through the revenue lost when you go from your current set-up with AT&T (share in the carrier customers’ monthly fees) to a NON-EXCLUSIVE deal involving Verizon (or anyone else – they all passed on this the first time so leaving AT&T or broadening your carriers NOT without costs/risks.).

  Please check out my comments below and the other posted examples and let me know if you have any issues or questions.

Recommendation

Given the current convergence of mobile telephones, data, music, and video, we recommend being Apple in the broad market space of players.  The analysis of several value chains using which criteria (e.g. likelihood of sustained superior tech competence; probability of ability to sustain brand equity and avoid margin compression; breadth of product offering/line; global brand and/or organizational development, etc.)  has led us to this conclusion for the following reasons:

  • Apple’s strong brand image and high customer loyalty
  • Apple’s cutting edge technology, design, and focus on research and development
  • Apple’s robust financial performance  OK, you list these three so:  1) they must be controlling/most important; and 2) these must be SCAs for Apple (make this sort of stuff explicit)

Basis for Recommendation

  • Apple customers are some of the most loyal and dedicated customers around.  Additionally, the success of the iPod and iPhone can lead to sales of computers and other products.  OK, sez who?  I’m not looking for citations as for an academic or even a consulting white-paper, but this comes across as simply your opinion. While I told you that I was not looking for boatloads of numbers or such, I AM looking for something beyond yourselves (as the aggregators of information who translate that into inferences and conclusions/recommendations) to offer some value-add beyond what comes across as simple opinion.  McKinsey’s (hopefully informed) opinion or Sergey Brin’s opinion might carry some weight, but not yours nor mine.  Make sense?
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  • Under the direction of Steve Jobs, Apple has been at the forefront of the digital portable music device industry with the iPod.  The company is blazing a path in the all inclusive Smartphone sector as well with the iPhone.  The design is truly elegant, yet simple looking and simple to use.
  • Apple is the first and only handset manufacturer to have a contract with a cellular service provider that gives the manufacturer a portion of the revenues generated by the phone’s service plan.  This stream of revenue will increase when Apple and Verizon begin doing business ...

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