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Friday, July 29, 2005
The ecosystem outpowering the individual supercharged pioneer in growing the market is an established trend in several industries. Bob Cringley brought the point in a different way when he wrote, Why No Single Entity is Capable of Dictating the Future. John J. Sviokla of Diamondcluster Consulting writes, Apple will soon lose its hold on the marketplace for both digital-audio players and digital songs. He sees that the iPod's features are being copied by Samsung, Dell, iRiver, Sony, and others. Competitors are adding tuners, cameras, gaming, and more to devices. They're rolling out a host of new music services. Meanwhile, the iPod has not changed much since its debut four years ago - and Apple's latest iteration, the iPod shuffle, has met with limited success. The competitors will win as they have created an economic ecosystem that powers innovation. The iPod, like most Apple products, is decidedly "closed." Your Yahoo music subscription won't work with iPod because Apple does not support Microsoft's WMA file format. More important, no one can improve on an iPod except Apple.
Category :Business Models |
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