The iPod Revolution

When you think back these past 10 years, you can’t imagine that time went by so fast. In a blink of an eye we entered the new millennium, experienced extreme terrorist acts, new wars, the last few chapters of the space program, the loss of very talented and iconic hero’s and the list goes on. It’s been a very interesting decade filled with extreme highs and extreme lows. But personally I think the most exciting achievements were made in the entertainment industry.

One word… Internet. The roots go way back to the 60’s but became a more public image in the 90’s while it really took off in the 00’s. With this amazing new “service” we can have the whole world in our hands without any limitations. For most of us, looking at the millennial generation, we use the Internet as our primary source for entertainment. Whether it’s social networking, watching movies, finding a lost friend, looking up your closest theater or shopping, entertainment is one of the main things we do on the Internet. This is where Apple comes in or actually, the vision of one man, Steve Jobs.

Your moms and pop’s music store is closing all over the world or losing business fast, and it’s not just because of a poor economy. The biggest upset in the record store industry came when Virgin announced the closing of their record stores across the world and especially the US. A company that made $280 million annually got shut down by the digital music age in a matter of a few years. This proves just how much the digital music age has affected the record industry and the music industry in general for that matter. (2009, paragraph 6, All US Virgin Megastores To Close By June)

But through all of this one man is smiling, Steve Jobs. He saw the future of the music world and took that gap. He changed our music lives forever and in 2001 introduced to the world… the iPod. A small device you can carry in your pocket while holding more then 1000 songs? The world was in disbelief, that’s amazing! And amazing it was. (n/d. paragraph 1, How has Apple Taken the World Pie?)

Two (2) years later Apple went a step further and in 2003 introduced iTunes. The biggest music store; available to me in my own house, by using a mouse. We don’t have to leave the house anymore to go buy a record. This was the beginning where record stores started seeing a decline in physical album sales. (n/d. paragraph 1, How has Apple Taken the World Pie?)

The great thing about Apple is that they employ both hardware and software engineers so they’re able to create all their products in house so both hardware and software can integrate seamlessly. The iPod design is so clean and simple which added to the success of the product making it user friendly to everyone.

The first iPod commercial featured a guy sitting at his desk while uploading cd’s to his computer and transferring them to his iPod; ‘A Thousand Songs In Your Pocket’, the first tagline and commercial introduced this revolutionary product to the world. It’s debatable on how the iPod became so popular but Apple’s distribution channels were a key factor. The relationship between Best Buy & Circuit City was torn apart in 1998 but came alive again in 2002 when iPods became available in over 500 Best Buy stores in addition to 225 CompUSA locations already selling the product. In 2005 Radio Shack purchased over 400 000 iPods for it’s initial 3 month sales period. Radio Shack distributed iPods to over 7000 of their locations. iPods in vending machines at airports was another major selling point, putting the iPod in over 21 000 locations. But the ultimate selling point for the iPod comes from the Apple Stores themselves. It’s the personal interactive experience in these stores that creates the ultimate selling point between the customer and iPod.

Apple has done an amazing job to get the iPod in as many distribution channels as possible. By doing this the halo effect took place. By selling millions of iPods at across the board, it provided the company with a greater scope of awareness to it’s other products including the iMac & MacBook. Because of this “halo effect” Apple’s retail computer market share in the U.S. up to 4.5 percent in July 2005 from 2.8 a year before. This proves that Apple’s distribution channels are effective.

There are many other MP3 player competitors claiming to be the next iPod killer but at the end of the day the real “iPod Killer” was Apple itself by introducing the iPhone. Now you could have an iPod and revolutionary mobile smart phone all in one. By doing this Apple could now dominate & maintain two (2) markets namely smart phones and MP3 players. Before the iPhone came around, other cell phones were regarded as the ‘iPod killer’ but they didn’t really prevail since Apple combined their revolutionary iPod with a phone and once again took the top place.

iTunes and iPod still continue to amaze everyday and will for a long time to come until the next visionary comes a long. To this date Apple owns 80% of the total MP3 market share. Also, to date Apple holds over an 85% market share for electronic music and has sold over half a billion tracks (continues to rise everyday). Apple has changed the way we look at consuming music in a lot of different ways; it’s the iPod revolution. (n/d. paragraph 1, How has Apple Taken the World Pie?)

References:

n/n. n/d. How has Apple Taken the World Pie? Retrieved April 31, 2011 from Filer. Website: http://filer.case.edu/dak22/

Christman, E. March, 2009. All US Virgin Megastores To Close By June. Retrieved April 31, 2011 from Billboard. Website: http://www.billboard.com/bbcom/news/all-u-s-virgin-megastores-to-close-by-june-1003951620.story#/bbcom/news/all-u-s-virgin-megastores-to-close-by-june-1003951620.story

Interview with Nick Sambrato from Mama's Sauce

For my interview I chose to interview Nick Sambrato, the owner and founder of Mama’s Sauce. Mama’s Sauce is a boutique print shop located in downtown Orlando that dedicates itself to only using the finest water and soy-based inks and cleaning products. It employs designers who truly have a passion for the design process of business cards, show posters, t-shirts, wedding invitations, etc. Mama’s Sauce also has a very interactive website where an order can be placed. It also features a blog and online store with a range of their own limited edition products.

The Mama’s Sauce team is a young group of print and design fanatics who have a drive and passion for what they do. This adds to the fun-working environment they have established. They are also very personable with their clientele so it is more like a family than your normal customer-business relationship. There is sense of community with this company, as it acts like a hub for creative people to come to and explore new things.

One of the biggest challenges Nick faced starting his company was committing. As soon as Nick said out loud he was going to do this he realized he actually has to commit physically, emotionally, spiritually, and mentally and birth this business. There was no negotiation with anyone, except himself. He told himself to just do it. Nick describes challenges as something that put you the test instead of being a hurdle. A challenge makes you stronger and prepares you not to make specific mistakes again in the future so you can build your business stronger instead of taking two (2) steps forward and one (1) step back.

I asked Nick how he prefers to negotiate with customers and contractors since he has to deal with them on a day-to-day basis. From his response I realized affiliation was very important to him because face-to-face conversation reduces personal distance so it’s easier to avoid stereotyping and other misconceptions. Nick is the owner of a business and acts professional on all levels, so when it comes to negotiating with your clientele and contractors, it’s key to always do it in person if possible. These ads to the personal touch his business focuses on so much.

The greatest advice I got from nick was to be true to yourself when negotiating. Be prepared and know what you want. Depending on the negotiating, in the end you’re selling yourself and that’s why it’s key to be professional. In the beginning of your career, it’s always wise not to be too aggressive if negotiating with someone. Depending on the issue, it’s better to think logically, ask for advice and try to achieve mutual gain. As a young adult entering the working world, I thought this was great negotiating advice from Nick.

Have a look at the Mama's Sauce website HERE