Subject category:
Strategy and General Management
Published by:
Harvard Business Publishing
Version: 10 December 2023
Revision date: 17-Jan-2024
Length: 18 pages
Data source: Field research
Abstract
The emergence of the MP3 file-based music format not only disrupted the market for portable audio players, it also had a huge impact on the business models of major record labels. Modularity, and the commoditization spillover enabled by modularity in the personal computer industry, was a major force in the development of the market. While Apple's iPod today holds the dominant market position, new forces of commoditization continue to drive shifts in the value chain. The case examines the commoditization cycle, and contrasts integrated solutions such as the iPod - iTunes software - iTunes Music Store with emerging competition from other MP3 players and the Amazon.com Music Store.
Industry:
Other setting(s):
2007
About
Abstract
The emergence of the MP3 file-based music format not only disrupted the market for portable audio players, it also had a huge impact on the business models of major record labels. Modularity, and the commoditization spillover enabled by modularity in the personal computer industry, was a major force in the development of the market. While Apple's iPod today holds the dominant market position, new forces of commoditization continue to drive shifts in the value chain. The case examines the commoditization cycle, and contrasts integrated solutions such as the iPod - iTunes software - iTunes Music Store with emerging competition from other MP3 players and the Amazon.com Music Store.
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Industry:
Other setting(s):
2007