There is also sufficient information for students to understand the pressure that industry forces can put on firms and to predict moves that industry incumbents will probably take in the near future. Indeed, the MP3 player industry is developing so rapidly that there are likely to be a number of changes in competitive positions and product offerings when you cover the case in your course. This can provide you with the opportunity to help students understand why companies in the industry may have made recent moves discussed in the current business press The case can be paired with the Apple case for an interesting examination of a dynamic industry, and the leading company in the industry. If the MP3 player case is taught first, this will allow the instructor the opportunity to focus more on the internal aspects of Apple and how it has built a formidable competitive position in the market. Additionally, it will allow the instructor to examine the importance if iTunes to Apple's success and how this success has impacted Apple's computer operations. This MP3 player industry case is well suited for either a written assignment or presentation. Our recommended assignment question is: You have been selected as a consultant by a small manufacturing firm that is considering expanding into the U.S. digital music player industry. Please prepare a 4-6 page report that assesses the attractiveness of the digital music player industry and suggest whether your client should enter the industry, and what capabilities they are likely to need to be successful. Please support your recommendations with a full analysis of the industry including a description of the industry's dominant business and economic characteristics, an evaluation of the competition in the industry, and an assessment of industry driving forces and key success factors. Assignment Questions 1. What are the dominant strategy-shaping economic characteristics of the digital music player industry (DMPI)? 2. What is competition like in the digital music player industry? Which of the five competitive forces is the strongest? Which is the weakest? What forces are driving change in the digital music player industry? Are the changes acting to make the industry environment more or less attractive from a profitability standpoint? What are the key success factors in the MP3 player industry? What will it take for a competitor to be successful? S. What does your strategic group map of the competitors in digital music players look like? How do the maps compare for the hard driven and flash-based players? 6. What strategic moves do you think Apple's rivals might take to attract buyers and cut into Apple's sales of iPods