Soundbuzz's

Only available on StudyMode
  • Topic: Digital audio player, Digital rights management, Comparison of online music stores
  • Pages : 7 (533 words )
  • Download(s) : 195
  • Published : March 5, 2013
Open Document
Text Preview
Soundbuzz’s Music Strategy
for Asia-Pacific
Management Information Systems

05.11.2012

Outline
1. Analyze Soundbuzz and its business strategy. What
strategies did it develop for dealing with the competition?

2. What are the critical elements for an online music service? Using the value chain model, analyze Soundbuzz’s business
processes.
3. Why did Motorola acquire Soundbuzz? What synergies will
be created through this partnership?
4. What else could Soundbuzz do to improve its business
model? What can it learn from iTunes?

Porter’s competitive forces model
New market entrants

Substitute products
Soundbuzz

Competitors

Customers

Suppliers

New market entrants
 Licensing deals
 Launch of an online music store

Strategies
 Lycos Asia
 Licensing agreements with record labels
 B2B model

Substitute products
 Music files provided illegally

 Freely shared files
 Digital music for a monthly fee
 CDs
 TV and radio

Strategies
 Big database/ mediabase

 Partnerships with mp3 player manufacturers

Customers
 Individuals
 Mp3 player manufacturers
 Music portals

Strategies
 B2C model
 Diversification

 Partnerships with Trivnet and ISPs
 Partnerships with mp3 player manufacturers

Suppliers
 Record companies
 Independent labels
 Unsigned artists
Strategies
 Partnerships with recording companies
 Digital rights management technology
 Artist-upload interface

Competitors
 Nokia music store
 Sony Ericsson music store
 Companies with a monthly fee (e.g. Spotify)
 Possible: iTunes and Amazon.com
Strategies
 Partnerships
 Big database/mediabase
 B2C and B2B models

Main strategies
Product differentiation
 B2B and B2C models
 Wireless and device areas
Focus on market niche
 Asia-Pacific region
 Lycos Asia promotion
Customer and supplier intimacy
 Partnerships

 Web-site
 Multiple-billing channels

Critical elements
 Big and up-to-date database
 High quality files
 Easy to use, convenient, goodlooking website
 Various and fast access to the

music (different platforms)
 Different payment systems,
affordable prices

 Safety and security of the content
(licenses/copyrights)
 Forming distribution partnerships

Value chain model
Infrastructure and Management
SUPPORT
ACTIVITIES

Forming Distribution Partnerships
Digital Rights Management Technology
Servers (Web, Database, Licenses, Media)

Music
Database &
Licenses

Process
files for
different
channels

Distributi
on via
Web,
Apps,
Devices

PRIMARY ACTIVITIES

Payment
Systems
&
Advertis
ement

Security,
Maintenance,
Customer
Service

Motorola & Soundbuzz
“With the resources of Motorola, we are now able to immediately expand the digital music offerings available to our customers – and Motorola’s rapidly growing installed base of handsets throughout the region.” Sudhanshu Sarronwala,

CEO of Soundbuzz
http://mediacenter.motorola.com

Has:

Wants:

 Customer database

 Expansion of music

 Music database
 Widespread in Asia-Pacific

offerings

Motorola & Soundbuzz
“Music is the heart and soul of the mobile entertainment experience, and with Soundbuzz as a part of our family, Motorola has the biggest heart and the most soul in mobile music in Asia.”
Ian Chapman-Banks,
Vice-President of Mobile Devices Marketing for Motorola Asia-Pacific. http://mediacenter.motorola.com

Has:

Wants:

 Brand

Expansion of Motomusic

 Handsets

beyond China

Success?
 They do not operate anymore - shut down in

2009!
 Motorola effected by the rapidly growth of the
smartphone market
 Changing market situations, new competitors
 Different customer expectations

Improvements and iTunes
 DRM free downloads possible
 Soundbuzz based on Windows Media
Player, only accessible through the
Internet explorer  not convenient
 Bundle: iTunes and iDevices
 Not...
tracking img