Apple Inc. 2Executive SummaryApple Inc. is a company that designs, manufactures, and then sells desktop and notebook computers, portable digital music players, and cell phones. It also creates software like the OS Xoperating system, iLife, iTunes, or QuickTime; and peripherals such as printers or storagedevices that go with these products. T
he biggest challenge Apple is facing is that consumers arereluctant to pay for songs and thus, Apple is losing customers to its competitors who are offeringmusic at a lower price. This can be seen in increased piracy and code hackers.
We came up with two possible solutions to address Apple’s challenges. The first is tocreate a streaming music system. Using the currently existing streaming music program,customers can choose stations from different music categories. With a more personalized systemthey could choose stations that play music similar to an artist they already like. While thestreaming music is playing customers would have the option to buy the song as well. The secondoption is to open up their music file sharing program with an all encompassing price. Applestands to benefit significantly in the future from building a closed community with artists andconsumers which will enable the company to compete more aggressively with record companieswhile also building a closed network which minimizes hacker risk.The second option of the closed community
solves the main issues faced by Apple, likethe loss of customers to competitors and dealing with illegal downloads from consumers, whichis why we found this to be the best option for Apple to pursue. Its overall purpose is to deliver acompetitive music package with top security, which adds value and significant competitiveadvantage to Apple’s current processes.