Summary of business strategy section:

Apple explains its business strategy in its annual 10-k filing. It seeks to continue to capitalize on the “convergence” of digital consumer electronics and the personal computer. Thus far, Apple has realized success in this area through its iPod and iTunes innovations.

Apple’s larger vision of the digital world is that we are in an age where the personal computer functions as the digital epicenter for cutting edge digital devises such as the “iPod digital music players, personal digital assistants, cellular phones, digital camcorders, DVD players and televisions.” Apple has thus positioned itself to offer both products and solutions for this new era.

Along the lines of offering new products, Apple recently introduced an iPod that can display photos and play video. In terms of solutions, all iPods work with the iTunes software on both Macintoshes and Windows computers. In addition, the iTunes Music Store is fully integrated with the iTunes software. This allows users to “preview, purchase, download, organize, share, and transfer” digital media to an iPod all with one software applet.

Importance to Thesis:

Apple’s business strategy is important for developing my third argument, which must prove that Apple has formed its business model to fit the future of media consumption.  From the summary, it is clear that Apple has a vision of where the digital media age is, and where it is headed.  Thus, Apple’s hardware and software products are the result of a large scope competitive strategy.  In addition, the contrast between Apple’s forward looking business strategy provides a contrast to recording companies’ narrow minded focus on eradicating peer-to-peer networks.  While recording companies have been fighting lawsuits, Apple has positioned itself at the forefront of the digital media revolution.  This contrast can help explain the recent success that Apple has enjoyed.