Since a strategy is a devised way of gaining competitive advantage where a firm can gain more economic value than its rivals gain. Then my recommendations would be that for a firm to be successful in strategic management then the firm should choose its strategies smartly to gain an upper hand in the market against its competitors since this requires creativity and innovation.
The strategic management entails the reduction of the likelihood of mistakes occurring. To achieve this a firm should choose and understand the strategies made carefully and systematically. For this case iTunes which is a product of Apple was successful due to the link it had with the iPod which is an incredible portable MP3 player also from Apple. Therefore Apple choose its strategies carefully and systematically. There is a positive correlation between the economic and accounting measures of competitive advantage. This can be shown by the fact that in 2006, I Tunes accounted for 88% of the share of the legal download market in the American market scenario. On the emergent and intended strategies since the Apple’s iTunes is in a sector that faces rampant technological changes then it calls for strategies to be radically reshaped overtime.
For a firm to know its threats and opportunities it has to understand its general environment. This consists of the demographic trends, technological changes and cultural trends. ITunes therefore emerged as a leader of this market since it was able to absorb a large customer base ahead of its rivals. I am of the opinion that the great satisfaction of the customers leads to this successful story of I Tunes.
On the threat of entry, iTunes was able to curb this problem since it established itself as a classic, secure, easy to use and reliable product therefore, maximizes social welfare.
References
E. Smith, “Can anybody catch iTunes?” The Wall Street Journal, 2006.
Dess, Gregory G., and Alex Miller. Strategic management. New York: McGraw-Hill, 1993. Print.
Jeffs, Chris. Strategic management. Los Angeles: SAGE, 2008. Print.
