An Exploratory Analysis on iPod-iTunes Business Model: A Dominant Design Perspective
Date Issued
2007
Date
2007
Author(s)
Yeh, Chun-Yi
DOI
zh-TW
Abstract
In a fast changing and hypercompetitive environment, such as the one in the information and communication technology (ICT) industry, technological discontinuities may create new product categories. As technology evolves, a single product design may achieve market dominance which leads to the establishment of a dominant design. A firm’s capability in creating and ensuring its technology to become a dominant design is critical to its long-term competitiveness and profitability in a dynamic landscape like the ICT industry.
There are two main streams of research in the dominant design literature; one focuses on the evolution of a dominant design while the other one emphasizes on the external factors facilitating the formation of a dominant design. Based upon these two streams of research and borrowing from the work of Anderson and Tushman (1990) and Suaréz (2004), we suggest an initial framework for case exploration. The main purpose of the present case study is to examine the emergence and evolution of iPod-iTunes' becoming a dominant design in the digital music industry, from which we will discuss the strategic implications of Apple’s releasing DRM-free music in April 2007.
Taking this foundation into consideration and exploring the evolution and diffusion of iPod-iTunes model as a focal case, the present research suggests a comprehensive framework encompassing the concept of ecosystem and interdependence among different levels of factors to explain the emergence and evolution of dominant design in new product category. Implications to practitioners who intend to create products with dominant design potentials are discussed.
Subjects
主流設計
專屬性
Apple
iPod
iTunes
Dominant Design
Appropriability
SDGs
Type
thesis
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