Assessment:
a) Analyze how Napster transformed the structure of value capture and the process of value creation in the music record industry. [to answer this question, take each of the five forces, and explain how Napster transformed threat of new entrants, baragining power of vendors, bargaining power of customers, rivalry among firms, and power of substitutes; similarly explain how Napster reshaped the process of value creation].
b) Using Porter's diamond model, explain why the US is such a strong base for a music record firm. The US music firms are flooding the European and other markets worldwide, while there are very few foreign music firms that are successful in the US.