DELIVERY

OF
ONLINE MUSIC
 GROUP MEMBERS
S.NO. NAME EMAIL ID PH.NO.
1 ASHOK KUMAR naimish1414@gmail.com +91 9415120222
SINGH
2 ANUPAM SRIVASTAVA Srivastava.anupam07@gmai +91 8853760381
l.com
3 KARTIKEY SINGH kartikeysingh@hotmail.com +91 9838681826
4 PALLAVI SINGH ps90365@gmail.com +91 8005036741

5 DHEERENDRA Dheeru_awasthi@rediffmail +91 9450913894

KUMAR AWASTHI .com

6 NEERAJ PARIHAR +91 8127094123

Neeraj.parihar@yahoo.com
COURSE INSTRUCTOR - PROFF.MANOJ JOSHI

FILE NAME : BPSM_P2_TEAM2_2010-12

 NATURE OF BUSINESS

• The major attraction for Online delivery is its direct nature. Digital distribution
bypasses conventional physical distribution media, such as CDs, DVDs.The term
digital distribution is typically applied to freestanding products; digital add-ons for
other products are more commonly known as downloadable content.

• To make a commercially successful work artist must enter there industries

publishing chain. Publishers help artist advertise, fund and distribute their work to
retail outlets.

• By opting for online distribution of music, the distributors can get their work into
the public sphere of interest easily with potentially minimum business overheads
This often leads to cheaper goods for the consumer and increased profits for the
artists, as well as increased artistic freedom.
• E.g.…Indian artists are for the first time able to access the same
distribution channels as major record labels, with none of the restrictive
practices or inflated manufacturing costs; there are a growing collection of
'internet labels' that offer distribution to unsigned or independent artists
directly to online music stores, and in some cases marketing and promotion
services.

• Further, many bands are able to bypass this completely, and offer their
music for sale via their own independently-controlled websites; this gives
even further advantage to the artist, as it completely cuts out a distributor
—and their cut of the profits.
 PRODUCTS & SERVICES

PRODUCTS SERVICES
• CD & CD player • Web distribution of music

• MP3 player • CD burning software

• Music subscription
• PC Hard Drives
service(music.net)

• iPods • Apple’s iTunes online music

• Computer portable music player • Digital online music

• File sharing software.

 COMPETITION ANALYSIS
No.1 music retailer with more than 50 million
To achieve a strong Niche Market.
Customers, already sold 4 billion songs, most
Manufacture’s ipod which only work with apple itunes
Popular among teenagers of 13 to 17.
Aggregating more than
Amazon has stronger following it uses a customer friendly Minimizing the cost of product
10 million users in six months
Among male users 64% compared interface development
Growth rate of 200.000
To itunes 44%
Subscribers in a single day

Strategy and Tactics

Human Factor
(analysis of strategy)
(Analysis of Relation)

Competitive Analysis

Service Financial Scanner

(Analysis of Prod.) (Assessment of the Fin.)

DRM protected WMAs,offers Net Income of Amazon was Net income of Napster was
offer DRM-free MP3 tracks and
Some excellent editorial US$ 902 Million(2009) US$36.83 Million(2009)
Currently holds 5 millions tracks
Contens(Napster,Napster to go)

Contains more than 8 millions song as well as Its success allowed apple to possess cash and its equi.
Variety of podcasts,TV shows, movies (itues,ipod) Of $6,392,000000
 CORE COMPETENCIES

Apple iTunes
 Produces highly valued consumer benefits.
 Apple’s easy-to-use products save time period.
 Create core competency through novel music player and cell phones that helped to grow its
revenue from $5.4 billion to $24 billion in the FY 2001-2007.

Napster
 Emerged as the most aggressive competitive threat to its competitive survivals.
 With Napster, users themselves are participating actively in music piracy, through passively
tolerating MP3 downloads from their PC without intrusion into their normal computer use.

Amazon MP3
They meet three conditions:
1) Provide consumer benefits.
2) It is not easy for competitors to imitate.
3) It can be leveraged widely to many products and market
 SWOT ANALYSIS

STRENGTH WEAKNESSES

Increases the online music sales only some of the software can run/play
Launch of iPod, iPad and laptops the online music
creates more customers No use for IT illiterates
Strong and reliable eco-system Increased piracy
iTunes, the online service, provided
music to customers at minimum price.
THREATS OPPORTUNITY

Increasing piracy may reduce the
revenues
Large number of competitors.
Laws/regulations
demand for online music is increasing
Improve the warranty plan for their
product
Reduce prices to increases their market
share.
 Some Other Relevant Points
• There has been a boom in “boutique” music stores that cater to specific
audiences.

• There is an increasing amount of new services popping up that enable the

musicians to sell there music directly to fans without any third party.

• Online music allows the instant downloading of radio-songs, as they are

broadcast, straight to the mobile phones in a very less spam of time.

• Music download companies are more accountable to users than creators of

file –sharing programs.