Weaknesses+&+Opportunites(SWOT)

A company’s weaknesses are important to outline as they are often reviewed and used as models of future improvements. It is extremely important for a company of any kind to re-evaluate their objectives and improve the service they currently offer. The importance of listing the company’s opportunity is crucial in setting future goals that will better the company over time. iTunes’ main weakness is its incompatibility with other MP3 models. The iTunes service only supports the apple iPod which is connected via the USB port on the computer. Certain MP3 models do not connect with the iTunes software thus not allowing the transfer of purchased music to the hardware. The iTunes software does not recognize the connected hardware if it is not an Apple iPod. This incompatibility greatly harms iTunes and Apple Inc., as it limits the choices of consumers, or even defers these consumers to other methods of acquiring music. A second major weakness that iTunes faces are the incompatibility of the music files. Each music file from iTunes is only in an Advanced Audio Coding format (AAC). Apple states that the AAC format is replacing the widely popular MP3 format as it delivers a better sound that rivals the crispness of an uncompressed audio compact disc (Apple, 2003). The AAC format is not compatible with many other portable music hardware’s-creating an inconvenience for consumers who own non iPods (Apple, 2003). Consumers with incompatible MP3 players may choose to buy music from competitors or even illegally download their music; this will damage iTunes as perspective sales are lost due to hardware incompatibility. Improving these weaknesses would greatly aid iTunes and broaden its market. By making this software compatible with various MP3 players, it would encourage more users to use the iTunes software to organize their media files. Also by making other hardware compatible with iTunes, it may encourage these users to purchase music using the iTunes store. The AAC format is a major compatibility issue for Apple and iTunes; however, this format is taking precedence over the current MP3 format. Although it is a weakness today, it is also a step forward as iTunes has recognized a gap in the market and has adopted this format in closing this gap as it is the only company that uses the AAC format along side DRM (Harris, n.d). iTunes’ use of Digital rights management (DRM) is an obvious weakness as many competitors are going the DRM-free route while selling their media files. Four of the world’s largest music labels have distanced themselves with DRM, stating that consumers do not want it. These four companies realize that the market is calling for change and are advocating for one ( Kravets, 2008). ITunes, however has not removed the DRM from the software and continues to use it despite markeet demand. iTunes’ DRM songs and media files prohibit the transfer onto none apple hardware-creating a roadblock within the availabilties of the market. Analysts believe that Apple’s decision to keep DRM as a part of their iTunes Software may harm its success in the future as non-DRM files are becoming readily available within the competiors like RealPlayer and Microsoft’s Zune (  Kravets, 2008). The removal of the DRM from the media files will generate more sonsumers as the files would be compatible on various hardware and plattforms. The removal of DRM would also retreive iTunes sales that have been lost to softwares that no longer use DRM within media files. Apple’s iTunes’ strengths and opportunities outweigh its weaknesses and threats as it constantly upgrades its service and accommodates a wide range of clientele. Some opportunities that iTunes has are its global availabilities. The iTunes software is available in over 60 countries and functions in various languages to accommodate its wide range of users (Apple, 2003). Music is universal and iTunes availability to function in an international market is an opportunity to break borders and reach millions of people around the world. iTunes ability to accommodate various cultures and peoples around the world is unlike many of its competitors. This accommodation of the world reflects the strong monopoly that iTunes carries, it also closes the gap of competitors chance to enter the market, or threaten iTunes longevity. iTunes benefits from this opportunity because it is the dominant media E-Commerce software and is recognized around the world as such. This large market share also appeals to international distributors. Music companies around the world make their clients music available via iTunes for a cost, aware that iTunes will make the music available, online around the world. AppleCare (2003) Apple Computer. “ [|MP3 player compatibility with iTunes for Windows] ” (Accessed on: February 3rd, 2009) Harris, M (n. d) AAC: A profile of the AAC format. (Accessed on: February 2nd, 2009) Kravets, D (2008) Death of DRM Could Weaken iTunes, Boost iPod  (Accessed on: February 5th, 2009)