What was the key to Apple creating a win-win proposition for both itself and its music company partners with iTunes?

Correct answer: A revenue-sharing model where music companies received 70 percent of the purchase price.

Explanation

This question focuses on the specific mechanism Apple used to successfully create its people proposition for partners, contrasting it with Napster's failure to do so.

Other questions

Question 1

According to Chapter 9, what are the three essential propositions that must be developed and aligned for a strategy to be successful and sustainable?

Question 2

How does the alignment of the three strategy propositions differ between a red ocean strategy and a blue ocean strategy?

Question 3

What is the typical result of a strategy that fails to fully develop and align the three strategy propositions, as described in Chapter 9?

Question 4

In the Comic Relief case study, what is the 'golden pound promise' that powerfully reinforces its value and profit propositions?

Question 5

What percentage of its donations does Comic Relief raise directly from the public, in contrast to the industry average?

Question 6

According to the analysis in Chapter 9, what was the primary reason the Tata Nano's initial success was not sustained?

Question 7

How did Napster's failure to align its strategy propositions lead to its downfall, as analyzed in Chapter 9?

Question 8

What percentage of the purchase price of a downloaded song did Apple's iTunes offer to music companies, creating a compelling people proposition?

Question 9

Which of the following is NOT a component of Comic Relief's value proposition for its donors?

Question 10

In the context of the three strategy propositions, what is the 'profit proposition' primarily concerned with?

Question 11

According to Chapter 9, why is the people proposition often the most difficult for competitors to imitate?

Question 12

Which company is presented in Chapter 9 as a prime example of achieving sustained high performance through the proper alignment of its value, profit, and people propositions?

Question 13

The case of the Tata Nano is used in Chapter 9 to illustrate a failure to create a compelling and aligned proposition for which group?

Question 14

According to Chapter 9, whose responsibility is it to ensure the strategic alignment of the three propositions?

Question 15

What is one of the key activities that Comic Relief's profit proposition eliminated to maintain a low-cost structure?

Question 16

How did Apple's iTunes create a 'positive reinforcing cycle of profit' across its platforms?

Question 17

While good strategy content is based on a compelling value proposition and a robust profit proposition, Chapter 9 states that sustainable strategy execution is based largely on what?

Question 18

How did Comic Relief's value proposition help it avoid the 'donor fatigue' commonly experienced by other charities?

Question 19

What was the fundamental flaw in Napster's strategic approach when the record labels approached it to work out a revenue-sharing model?

Question 20

The Tata Nano's profit proposition included many cost innovations. For example, its door handles were designed with what percentage of fewer parts?

Question 21

What is the core difference in the strategic pursuit of a red ocean strategy versus a blue ocean strategy regarding differentiation and low cost?

Question 22

In the case of Comic Relief, the people proposition primarily focuses on inspiring which groups?

Question 23

Why did Tata Motors decide against making the Nano a two-door car, even though it would have resulted in substantial cost savings?

Question 24

What is the ultimate outcome when an organization's three strategy propositions are fully developed and aligned in pursuit of both differentiation and low cost?

Question 25

Chapter 9 describes 'corporate graveyards' as being filled with what kind of organizations?

Question 26

On average, what percentage of funds do traditional UK charities receive from the public, as a point of contrast to Comic Relief?

Question 27

Comic Relief's value proposition is built on 'fun'draising and humor. What negative feelings, commonly used by traditional charities, did it eliminate?

Question 28

What did Apple's compelling people proposition for its external partners, the major music companies, allow it to achieve for the launch of iTunes?

Question 29

The Tata Nano's blue ocean value proposition offered a safe and comfortable car that was priced against which alternative market?

Question 30

What is the main reason given in Chapter 9 that executives with a strong functional bias, such as in marketing or manufacturing, cannot successfully align the three strategy propositions?

Question 31

What is the core concept of 'strategic alignment' as described in Chapter 9?

Question 32

In the Tata Nano case, what was the focal dispute with the Singur community that caused the misalignment in the people proposition?

Question 33

Chapter 9 notes that Napster had a clear first-mover advantage and was loved for its value proposition. Approximately how many registered users did it attract?

Question 34

Which two strategic moves in the digital music industry are contrasted in Chapter 9 to demonstrate the crucial difference between a misaligned and an aligned strategy?

Question 35

How did Comic Relief's differentiated, low-cost value proposition help it build a strong profit proposition?

Question 36

According to Chapter 9, in which situation might a company need to have two distinct value propositions?

Question 37

When asked to define blue ocean strategy, some people see it as unlocking business model innovation through strategic pricing and target costing. According to the author in Chapter 9, this view is:

Question 38

What is the systematic, dominant channel Comic Relief uses for getting contributions, making its profit proposition both differentiated and low-cost?

Question 39

What was a key design choice in the Tata Nano that helped achieve its differentiated and low-cost profit proposition?

Question 40

In the case of Napster, who approached the company to create a win-win revenue-sharing model, and how did Napster respond?

Question 41

What is a key aspect of the people proposition that Comic Relief offers to its volunteers, corporate sponsors, and celebrities?

Question 42

Which of the three strategy propositions is defined as the business model that allows a company to generate revenue and profit from its offering?

Question 43

While imitating one or two strategy propositions may be possible, Chapter 9 argues that imitating all three is difficult. Which proposition is highlighted as being especially hard to replicate?

Question 44

Which of the three strategy propositions is focused on providing positive incentives and motivations for employees and partners to execute the strategy?

Question 45

The case of Napster is used to show that a compelling value proposition is not enough for sustainability. Which other two propositions did it fail to develop?

Question 46

To avoid donor fatigue and keep the event exciting, how often does Comic Relief hold its Red Nose Day?

Question 48

Chapter 9 discusses how a blue ocean strategy must be aligned. This alignment supports the simultaneous pursuit of which two strategic objectives?

Question 49

In a business-to-business environment, Chapter 9 suggests a company might need distinct people propositions for which two groups?

Question 50

What principle of blue ocean strategy is the focus of Chapter 9, which aims to 'close the loop' between creating and capturing blue oceans to ensure sustainability?