Abstract

From being one of the top PC manufacturers during the 1980s, Apple Computer (Apple) has been reduced to a niche player. In recent times, Apple has attempted to reposition itself as a provider of an integrating platform for a range of household digital devices like cameras, video recorders, music players, etc. With the emergence of the Internet in general and on-line music in particular, Apple seems to have got the big break. The company looks well placed to leverage its strengths to emerge as the market leader. Meanwhile, sensing that Apple is moving ahead, arch- rival Microsoft is also increasing its commitment to on-line music. In the 1980s, Microsoft's Windows beat Apple's Macintosh convincingly in the battle of operating systems. Now, it remains to be seen who will emerge winner in the battle of digital music formats. This case helps MBA students understand the challenges involved in competing in a newly emerging industry.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Apple computer, On-line music, Steve Jobs, Strategy case study, Digital lifestyle, PDA, Apple product line, iPod, G4 cube, Power Mac G4, iMac, CD, iTunes, Roger Ames, KaZaA group