“from the Mp3 Invention to the Ipod Innovation: the Disruption of the Music Industry”

3605 Words May 30th, 2012 15 Pages
TABLE OF CONTENT
INTRODUCTION ......................................................................................................................... 4
I. FROM INVENTION TO INNOVATION : .......................................................................... 5
A) Invention of the MP3 Format and the birth of the MP3 player. .................................... 5
B) Revolution of the economic structure: the market before and after the launch of the Ipod. 6
C) The creation of the iPod: innovation or imitation? ........................................................ 7
II. APPLE’S KEYS OF SUCCESS: .......................................................................................... 8
A) The Silicon Valley: a strategic location.
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It reduces the size of the file to 10 times. This tool facilitates the exchange of data’s but as well as stocking it.
The first MP3 player was created by a South Korean brand, SaeHan Information Systems under the name of the MPman, in 1998, Eiger Labs in the US… The other major competitors were Pontis and Diamond Rio which basically offered the same features. This first generation of MP3 was working with a memory flash which kept the product price too high to have a massive success even though, the most popular one from this generation was the Diamond Rio, often thought by mistake as the first MP3 player.
In 1999, another innovation was added to the MP3. The company Remote Solution launched a MP3 working with a hard drive as well as its major competitors Creative, Archos, Thomson, Philips. The storage is though very convenient, people are able to put more music but also files. The size remained quite big, comparable to a CD player’s size.
The most successful and easily adopted MP3 player was the flash drive MP3 player (for instance MPman), very small, convenient even if the capacity was not huge; the price remained affordable to guarantee massive sales.
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B) Revolution of the economic structure: the market before and after the launch of the iPod.
In 1999, the MP3 offer was covered by two types of product: the flash drive size MP3, as seen previously, low capacity but very portable and less expensive

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