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Write a 5 page essay on Report on Competing with Information Technology.The issues addressed include. various ways that Spotify music service uses IT to compete with iTunes music service and the techn
Write a 5 page essay on Report on Competing with Information Technology.
The issues addressed include. various ways that Spotify music service uses IT to compete with iTunes music service and the technologies leveraged by the two corporations to enable competitive advantage.
Most customers are mindful about the music delivery business and the effectiveness of each one of them. Because the music industry will exist into the foreseeable future, most music companies are developing strategies that will help them capture a larger share of the market among its rivals (Kusek et al. 82. Latham 4). This competition, however, has streamed down to only two main competitors existing in the market. These music services include the Apple iTunes and Spotify. These two music services experience large economies of scale and have a huge demand on a global scale. Both Apple iTunes and Spotify have pressed on with sweeping overhauls of their digital music services that allow fair competition. Apple iTunes has about 800 million customer accounts out of which 200 million customers are active buyers. Spotify, on the other hand began in Sweden and move into the United States in 2011. Spotify currently has about 15 million customers that subscribe through payments and 45 million customers that listen free, with advertising (Lester 49). There, however, exist various uncertainties as to how Spotify music service will match up to Apple iTunes.
Michael Porter’s value chain is applied in iTunes service in order to get an insight of the chain of activities involved before a valuable service is provided to the consumers. Apple iTunes is a service that comes in form of an online platform providing music distribution structures(O’Grady 112). The Value-chain model of iTunes’ primary activities is as follows
1. Content creation- the content is regulated by licensing agreement partnerships with various music labels.In this partnership, iTunes offer artists’ music to customers and for each download Apple is entitled a share in revenues.