Strategic analaysis Spotify
WORD COUNT: 3390
Executive Summary 3
Industry Overview 4
PEST Analysis 5
Political 5
Economical 5
Social 5
Technological 5
Porter’s 5 forces 6
Power of Suppliers 6
Power of Buyers 6
Threat of new Entrance 6
Threat of Substitutes 6
Industry Rivalry 6
Strategic Groups 7
Customer Segmentation 8
What is happening inside the organisation 9
Purpose, Mission, Objectives 9
Resources and Activities/Competencies 9
Organisational Culture and Stakeholders 10
Stakeholders 10
Porter’s Added Value Chain 11
Spotify Strategy & Issues 13
Recommendations 16
Conclusion 18
Appendix 19
Source: (White, 2011) 21
Bibliography 31
Executive Summary
The aim of the following strategy context report is to analyze the digital music streaming industry in the United Kingdom and discuss Spotify’s strategic approach within its framework. It also provides recommendations of how to solve arising strategic issues, which we feel, are of fundamental importance to the company. To carry out and ultimately interpret our analysis of the macro environment we made use of various analytical tools such as PEST, Porters Five Forces, strategic group analysis and customer segmentation.
In addition to the above the internal environment of the enterprise has been examined considering the companies Purpose, Mission and Objectives as well as using techniques like the analysis of resources and competencies, the Porters value chain and a stakeholder analysis.
Based on our findings we are able to present the following recommendations:
Improve the quality of their radio service.
Engage in joint ventures with TV-manufacturers to create individual music channels.
Remove Facebook as a necessity to subscribe to their services.
Integrate the premium and unlimited service into one product
Industry Overview
The industry Spotify is operating in can be defined as the digital music distribution industry. However, we are not going to focus on the download business, which involves downloading and purchasing the rights of
Executive Summary 3
Industry Overview 4
PEST Analysis 5
Political 5
Economical 5
Social 5
Technological 5
Porter’s 5 forces 6
Power of Suppliers 6
Power of Buyers 6
Threat of new Entrance 6
Threat of Substitutes 6
Industry Rivalry 6
Strategic Groups 7
Customer Segmentation 8
What is happening inside the organisation 9
Purpose, Mission, Objectives 9
Resources and Activities/Competencies 9
Organisational Culture and Stakeholders 10
Stakeholders 10
Porter’s Added Value Chain 11
Spotify Strategy & Issues 13
Recommendations 16
Conclusion 18
Appendix 19
Source: (White, 2011) 21
Bibliography 31
Executive Summary
The aim of the following strategy context report is to analyze the digital music streaming industry in the United Kingdom and discuss Spotify’s strategic approach within its framework. It also provides recommendations of how to solve arising strategic issues, which we feel, are of fundamental importance to the company. To carry out and ultimately interpret our analysis of the macro environment we made use of various analytical tools such as PEST, Porters Five Forces, strategic group analysis and customer segmentation.
In addition to the above the internal environment of the enterprise has been examined considering the companies Purpose, Mission and Objectives as well as using techniques like the analysis of resources and competencies, the Porters value chain and a stakeholder analysis.
Based on our findings we are able to present the following recommendations:
Improve the quality of their radio service.
Engage in joint ventures with TV-manufacturers to create individual music channels.
Remove Facebook as a necessity to subscribe to their services.
Integrate the premium and unlimited service into one product
Industry Overview
The industry Spotify is operating in can be defined as the digital music distribution industry. However, we are not going to focus on the download business, which involves downloading and purchasing the rights of
Bibliography: Accessed [18th October 2012] BBC, 2012, Streaming music revenue, [ONLINE] Bradshaw, T. (2012). ‘Spotify doubles number of paying users’ The Financial Times, 31 July 2012. Available URL: http://www.ft.com/cms/s/0/cdf16422-db2d-11e1-be74-00144feab49a.html#axzz2BMBsi0VI Budden, R. (2012). ‘Spotify counts cost of new launches’ The Financial Times, 23 August 2012. Available URL: http://blogs.ft.com/tech-blog/2012/08/spotify-2011-annualreport/#axzz2BMFoU9UE Accessed [14 October 2012] Office for National Statistics, 2010 Olson, P. (2012). ‘Spotify Tries To Soothe Angry Users Over Facebook Conditions’ Forbes, 28 September 2011. Available URL: http://www.forbes.com/sites/parmyolson/2011/09/28/spotify-tries-to-soothe-angry-users-over-facebook-conditions/ Accessed [14 October 2012] Reuters, 2012, Louis C.K., Pinterest, Spotify win Webby Awards, [ONLINE] Spotify, 2012, Jobs, [ONLINE] Available URL: http://www.spotify.com/uk/jobs/ Accessed [24th October 2012] Spotify, 2012, What is Spotify?, [ONLINE] Spotify, 2012, Connect with Facebook,[ONLINE] Available URL: http://www.spotify.com/uk/about/features/connect-with-facebook/ Accessed [18th October 2012] Spotify, 2012, Praise & Prizes, [ONLINE] Telegraph.co.uk, 2009. The Telegraph. [ONLINE] Available at: http://www.telegraph.co.uk/technology/news/5406577/Illegal-downloads-used-by-seven-million-in-Britain.html. [Accessed 05 November 12]. Time Magazine, 2012, Spotify Mix Master, [ONLINE] Available URL: http://search.ebscohost.com/login.aspx?direct=true&AuthType=cookie,ip,athens,url,uid&db=bth&AN=74531246&site=ehost-live Worldpopulationreview.com, 2012. World Population Review. [ONLINE] Available at: http://worldpopulationreview.com/population-of-uk-2012/. [Accessed 05 November 12]