case analysis: music juice

Rocky Lui and John Wong, two friends who wanted to build a new Internet venture together, found an interesting concept in Amsterdam that they wanted to import in North America: it was a platform based on crowdsourcing where fans could help their favorite musicians by raising money for them. The two entrepreneurs imported the core business model of the company Sellaband.com and added a few features to differentiate themself from the existing competitors.

However, once the company was created, several problems occurred:
- A new competitor, Slicethepie.net, was launched one month after MusicJuice, backed by a large campaign.
- There were additional costs and delays on the implementation of the website.
- Rocky was lacking coding skills and John didn’t have any management skills. This resulted in the deterioration of the relationship between the two friends.
- Two of the four revenue streams were inefficient, which lead to an insufficiency of revenue.
- Most of the people had the opinion that the website presented no interests
In conclusion, the fundamental problems were the lack of experience and skills from the two founders, the lack of interest from the website and the insufficient revenues.
Given this situation, MusicJuice had several options to improve its value proposition. For example, it could improve its marketing campaign or offer more possibilities for users on its website, like voting for his favorite artist or raise money for movies or books. These solutions would help the website to have more users, which is the fundamental element of the concept of crowdsourcing.

For my part, I think that they could take advantage from the help of an outsider. For example, they could contact venture capitalist or business angels. With their experience and knowledge, they would give great advices to the two young entrepreneurs. Moreover, it is an opportunity for Rocky and John to obtain financing for their startups.