Apple and SevenSeas Music Companies Acquisitions and Strategies

Apple is a well-known electronic company, which is famous for its products such as Mac, iPad, iPhone, Apple Watch, and iPod (Apple.com, 2015). It operates worldwide and provides its products internationally. Steve Jobs, as a co-founder of the company, was seeking for the changes and wanted to make the world a better place (Kaspekevic, 2015). All his dreams came true after his death. It was possible with mergers, acquisitions, and a relevant international trade strategy.

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SevenSeas Music is a streaming website, which allows listening to music from different regions. This idea was generated by Brook Wentz while she was traveling (SevenSeas Music, 2015). She wanted to give people the ability to listen to international music at home (SevenSeas Music, 2015). Even though the company has an international focus, it still operates only in the United States of America, as it only started providing its services. Consequently, no mergers and acquisitions occurred.

It has to be mentioned that this paper focuses on the music-streaming industry, as it is the area of operation for both companies. However, it has to be said that Apple’s other businesses are also discussed, as the mergers and acquisitions also had a pivotal effect on them. Focus on this particular area helps provide SevenSeas Music with relevant future strategies.

This essay evaluates Apple’s mergers and acquisitions. Moreover, it provides information about Apple’s business and corporate level international strategies and gives recommendations for its improvements. Furthermore, it suggests SevenSeas Music possible businesses to acquire to improve its financial performance. Moreover, it offers business and corporate-level strategies for SevenSeas Music.

Apple: Evaluation of Mergers and Acquisitions

In order to produce high-quality products and maintain its leading positions on the market, Apple had to merge and acquire other businesses. One of the most shocking and surprising Apple’s acquisitions were Beats Music and Beats Electronics (Richards, 2015). This fact was unexpected since Beats does not have a respected reputation and is not considered as the primary leader of the market. However, Apple’s strategy could be explained. Apple’s iTunes did not provide streaming services and were losing its positions on the music market. However, Beats Music gave Apple an opportunity to gain its market share back (Richards, 2015). Moreover, it allowed the company to bring variety and novelty to its product line.

Furthermore, Apple was using a systematic strategy to get control over Beats Music and Electronics. By the time it was fully acquired, Beats was already partly integrated with iTunes (Richards, 2015). It allowed Apple to avoid unexpected reactions and reduce costs.

Another benefit of this acquisition is the fact that Apple was able to attract the best electronic minds to work in its team. Key figures of Beats are now working side by side with their Apple colleagues, as acquisition also involves integrations of the workforce (Richards, 2015).

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It could be said that there are several intentions, which Apple leader while acquiring Beats Music and Electronics. Firstly, Apple is always looking for opportunities for expanding its product line, and Beats was one of the solutions as it supplies Apple with new electronic devices. Secondly, acquiring Beat help Apple attract smart engineers to its team in order to improve existing products and develop new product lines. It could be said that this acquisition might seem questionable. However, it is beneficial for the company in terms of technological development, product line expansion, and attraction of new specialists.

It could be said that differentiation strategy was a key driver and motivation to perform this acquisition. As Apple is constantly looking for a possibility to enhance its products, this act helped the company reach its objective by avoiding high investments. Lastly, Apple also expanded its product line with a product with an existing reputation.

SevenSeas Music: Possibilities for Mergers and Acquisitions

It could be said that mergers and acquisitions are necessary to improve the quality of the service and enhance supply chain management (Sachin, 2012). It helps a company create a distinct competitive advantage and increase its market share. It could be said that the improvement of the supply chain might be a possible solution to SevenSeas Music, as it has just started its operations on the market.

It could be said that the company can acquire its service providers, as it will help SevenSeas Music have a continuous flow of music and assure its presence on the market. Moreover, it can assist the company in gaining popularity and operate not only in the United States but also abroad.

Another possible solution is to be acquired or merged with another streaming company such as Spotify. Spotify is one of the leading music-streaming businesses in the world, which allows listening to high-quality music everywhere (Spotify, 2015). Being acquired by this music-streaming giant will help SevenSeas Music rapidly gain a positive reputation and give possible solutions to future development.

Moreover, TripAdvisor can acquire SevenSeas Music. TripAdvisor is a widely known website, which offers an opportunity for the customers to book an inspiring trip (TripAdvisor, 2015). This acquisition proposal might sound surprising. However, it will help the company to build an international image as the link to SevenSeas Music with the song suitable for the region will be provided on the page of every country.

Apple: International Business-Level Strategy and Recommendations

It could be said that Apple uses a differentiation strategy as a primary international business-level strategy. According to Apple’s annual report, the company’s goal is to provide its customers with innovative products and services (Apple Inc., 2014). Moreover, the company has the ability to focus on multiple actions at the same time, such as providing music with iTunes, books with iBooks Store, and an innovative operating system with Apple devices (Apple Inc., 2014). It could be said that Apple’s focus on innovation and the ability to provide enhancing experience with iOS were the primary reasons for its success in the world.

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It could be said that Apple’s business-strategy is successful. However, some improvements have to be made due to the fact that other streaming services and online music stores are gaining popularity in the world. It could be suggested that Apple should pay attention to the development of iTunes, as some people have a tendency to switch from iTunes to Spotify or Google Play. Spotify is more comfortable as it allows us to listen to unlimited music online with a monthly subscription (Spotify, 2015). This fact enhances the listening experience and gives the ability to enjoy every song with high-quality beats.

It has to be mentioned that Apple has done the first steps to occupy the music-streaming niche, as it acquired Beats Music to improve the quality of iTunes’ services. However, additional steps are required as newcomers and start-ups are occupying this market niche quickly.

Apple: International Corporate-Level Strategy and Recommendations

As for the corporate-level strategy, Apple uses global strategy, as the company provides the same products for all the markets. EDGAR database contains a recent state of Apple’s sales and the areas of operation. The report shows that the company sells iPhones, iPads, and Macs in the Americas, Europe, China, and Asia (U.S. Securities and Exchange Commission, 2015). This report clearly implies that the products and services remain the same in different countries.

In terms of international strategy, Apple should focus on the transactional approach, as some countries experience a lack of national identity in iTunes. iTunes, like software, can remain the same. However, some adaptations are necessary. One of them is the ability to provide high volumes of international music and give more opportunities to the local bands. It will help Apple to increase customers’ loyalty and improve its reputation in the global arena.

SevenSeas Music: Possible Business-Level Strategy

SevenSeas Music is a recently established company. Consequently, it does not have a well-established business-level strategy. It could be said that the density of the music market industry is high. Subsequently, it would be hard for SevensSeas Music to gain a share of the market by using differentiation and cost-leadership strategy. A focus strategy might be considered as a possibility since it will help the company gain a market share by fans of international music and travelers. As a consequence, an acquisition with TripAdvisor might be necessary, as its primary clients are tourists. It will help the company rapidly gain popularity in the world and get professional assistance from TripAdvisor’s professionals.

SevenSeas Music: Possible Corporate-Level Strategy

As for the corporate-level strategy, the company is not able to increase its market share by itself. Consequently, mergers and acquisitions are required to remain competitive in the music-streaming industry. Possible acquisitions with TripAdvisor have already been evaluated. It could be said that this situation will be beneficial for both companies, as SevenSeas Music will be able to gain the share of the market. In turn, TripAdvisor will diversify its activities, as with the help of SevenSeas Music, it will be able to occupy a music-streaming niche.

Additionally, another option for the company is to stay value-neutral and utilize stability strategy. This suggestion is also relevant, as a corporation just started its operations and did not have enough financial resources to attract TripAdvisor’s attention or acquire its service providers. Focusing on its current market will help a company to boost its reputation and create social recognition among travelers and international music fans.

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Conclusion

It could be said that Apple and SevenSeas Music operates in the music industry. However, their strategies are dramatically different, as they are on the unequal stages of development. It could be said that Apple’s acquisition of Beats Music and Electronics is beneficial, as it will help enhance iTunes services and broaden the product line. As for SevenSeas Music, the company should acquire its music providers or get acquired by TripAdvisor to gain a client base rapidly. It could be said that Apple’s corporate and business-level strategies are successful, as these methods allowed the company to be one of the leaders of the market. However, Apple should also pay attention to the development of iTunes. As for SevenSeas Music, a company should focus on the specific niche of travelers and music lovers. On the corporate level, it should pursue a stability strategy, as the company might not have enough of the financial resources and reputation.

References

Apple.com. (2015). Web.

Apple Inc. (2014). Annual report. Web.

Kaspekevic, J. (2015). Steve Jobs’ vision for Apple realized as iPhones reveal injustice, says Tim Cook. The Guardian. Web.

Richards, K. (2015). 5 critical lessons in mergers and acquisitions from the Apple-Beats deal. Web.

Sachin, G. (2012). Mergers and acquisitions for enhancing supply chain competitiveness. Journal of Marketing and Operations Management Research, 2(3), 129-147. Web.

SevenSeas Music: Founder’s statement (2015). Web.

Spotify: About us. (2015). Web.

TripAdvisor: About TripAdvisor. (2015). Web.

U.S. Securities and Exchange Commission. (2015). APPLE INC (Filer) CIK: 0000320193. Web.

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