Spotify Case Study Essay

661 Words Feb 15th, 2016 3 Pages
Spotify Case Study 1. What do the changes in the marketplace mean for the music streaming industry? Is that even the right definition of the industry? a. Spotify has gained recent competition with entities such as iTunes Radio and Beats By Dre, meaning that music is becoming more accessible to the general public without having to pay for each individual song you want to hear. People are catching on to Spotify’s idea of a monthly flat rate, which is creating more competition in the industry. Furthermore, it is has been discovered that this could be ‘inherently unprofitable’ for Spotify because their margins do not increase as they become larger. Yes, it is an industry because they do produce goods for a certain market. …show more content…
It does not feel like a scam and it is more simple and faster than downloading songs, so I believe they have effectively built their company around these needs. 4. Where do future opportunities exist to leverage what the company has already built as its value proposition to customers, its source of competitive advantage or create new advantages? d. In the future, they can expand to even more countries that remain untapped (like China and India), somehow create more benefit for artists, have song recommendations, collaborate with other companies (like Apple possibly?), and possibly raise their prices in order to make a better profit than they currently are. They may eventally need to get a monthly rate for all users, just because so many people still stream music for free, causing them to lose potential profits. They could also obtain access to more songs that are not mainstream and possibly begin advertising more to get their name out there for more users. They are fundamentally changing how people stream and listen to music. 5. How does your recommendation address the changing scope and dimensions of competitive rivalry, including Apple's continued inroads into streaming? e. Giving the artists more benefits will address many of their negative attitudes towards Spotify and encourage more artists to give them their music. In addition,

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