THE FUTURE OF ZUNE
CAMPUZANO, Sandra
CASTAÑEDA, Lucia
MARTIN, Pablo
THAPA, Sanjaya
Introduction
Microsoft Corp.
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Name of the company :
Microsoft corporation
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Founded on :
1968
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Head quarter :
Redmond, Washington
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No of stores :
unknown
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Product in music industry : Zune, Zune marketplace, Zune Car
Pack , Travel Pack , Zune Home
A/V Pack
Introduction:
Apple Inc.
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Name of the company :
Founded on :
Head quarter :
No of stores :
Apple Inc.
1976
Cupertino, California
197 retail stores in the United States,
Canada, Japan, the United Kingdom,
and Italy
Product in music industry : iPod, portable digital music players
and its accessories; itunes stores
like third-party. Music, books, music
videos, short films, television
shows, movies, pod casts and iPod
games.
Comparison between ZUNE and iPOD
Feature
Zune 80GB
iPod classic 80GB
iPod touch 8GB
$249.99
$249.00
$299.00
4.3 x 2.4 x 0.51
4.1 x 2.4 x 0.41
4.3 x 2.4 x 0.31
Weight (ounces)
4.5
4.9
4.2
Display (inches)
3.2
2.5
3.5
LCD
LCD (LED backlight)
Touch-sensitive LCD
Resolution
320 x 240 (expected)
320 x 240
480 x 320
Navigation
Zune Pad
Click Wheel
Multi-touch
Yes (802.11b/g
expected)
No
802.11b/g
Wireless Sync
Yes
No
No
Wireless Share
Yes
No
No
Audio Support
WMA, protected WMA,
WMA Lossless, MP3,
MP3 VBR, AAC
(expected)
AAC, protected AAC,
MP3, MP3 VBR,
Audible, Apple
lossless, WAV, and
AIFF
AAC, protected AAC,
MP3, MP3 VBR,
Audible, Apple
lossless, WAV, and
AIFF
Video Support
WMV, H.264, MPEG-4
H.264, MPEG-4
H.264, MPEG-4
Yes
No
No
Price
Size (inches)
Display Type
WiFi
FM Tuner
Comparison according to the course
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Both technologies are market pull. iPod has the advantage of
being the first just as Zune is a late follower.
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Zune may get advantage being a follower as the technology
benchmarking is available.
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The technology of Zune and iPod are very similar, but Zunes
additional features can be a competitive advantage and shape
the competitive environment in the future.
Comparison according to the course
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Comparing the life cycle: Zune is in introduction phase while
iPod is in growth

Microsoft and Apple as a competitor are investing heavily on
R&D for product differentiation

iPod is successful in
creating a dominant design

Microsoft is more focused
on bundling more technology
with its design to compete with
the market dominator I-pod
Why Can Zune Succeed?
Factors other than Technology
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Reputation of Microsoft in the Market.
Aggressive marketing.
Sustainable financial resources.
History of late entry and successfully taking over.
Availability of bench marking.
Better performance that iPod.
Can discount the Zune as a loss leader to gain market
share and subscription income.
They have a growing market share.
Advantage Over iPod
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Counts with WMA support (Microsoft's proprietary code)
Ability to share media between devices
Features pre-loaded media
Connects to the XBox via USB
Offers additional color choices
Offers a .5" (diagonally) larger screen
Recharges batteries faster
Customization of the product
What Are You Looking For?
Bigger screen
More storage with a larger music
library
Novelty
Movie and TV store
Want something different
Touch-sensitive scroll wheel
Access to Wi-Fi
Slim music player
Scratch resistant screen
Want something “cool”
Customized background
Additional features (contacts ,
calendar, stopwatch, notes & games)
Built-in FM tuner
Conclusion
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Zune has a quality product with new characteristics that may
attract new customers and will reduce iPod’s market share.
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Zune needs to be aware of the strength iPod has over the
market, customers are reluctant to buy something different.
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iPod took the risk of being the first in the market and it has
paid with the customers loyalty.
Conclusion (cont.)
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At the end of the day it is a constant battle of new
technologies which will never end.
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New followers can arise.
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Microsoft needs to take advantage of his software
control.
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Microsoft must increase the marketing budget for Zune,
because in many countries the product is starting to get
recognized.
Recommendations
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Include an AC adapter
Make it compatible with PlaysForSure
Create new model like iPod 80 Gb or iPod Nano
Include recorder so that music can be recorded from FM
Try to solve the DRM complaints of consumers
Make it compatible with other Microsoft applications
Explore new markets.
Sources
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Ricker, T. (2007, October 3). Zune vs. iPod specification smackdown.
Retrieved December 3, 2007 from
http://www.engadget.com/2007/10/03/zune-vs-ipod-specificationsmackdown/
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Portable Media, . (2007, November ). Zune vs iPod. Retrieved December 3,
2007 from http://gizmodo.com/gadgets/portable-media/zune-vs-ipod-thefinal-word-on-who-should-get-your-money-215107.php

Roughly Drafted, . (2007, November 30). iPod vs Zune. Retrieved
December 3, 2007 from
http://www.roughlydrafted.com/RD/Q4.06/A42D8A40-B874-4EEF-A999DBCED6F95B0A.html
THANK
YOU