Topics: Music industry, Record label / Pages: 35 (8692 words) / Published: May 7th, 2013
Term paper
Handelshøyskolen BI

- Spotify -

GRA 68344 – Business Development and

Innovation Management

Hand-in date

BI Oslo

MSc in Innovation and Entrepreneurship
Table of content Executive summary ii What is Spotify? 1 Timeline For Spotify 2 External Environment Analysis 3 PESTEL framework 3 Porters 5 forces 3 Internal Environment Analysis 6 Vrin framework 6 Stakeholder analysis 7 Users 8 Right Holders 8 Business Partners 8 Employees 8 Competition 9 Swot analysis: 9 Strength 9 Weakness 10 Opportunities 11 Treaths 11 Spotify’s value system 11 Spotify’s innovation Processes 14 Spotify and Disruptive innovation 15 Status and challenges 16 Technological 16 Strategy 19 Recommendations 20 Appendix 1 – findings in interview with Cathrine Solheim 22 Appendix 2 – Findings in Interview with Ugress 25

Executive summary

The digital music industry has over the last decade developed significantly. From LP’s, CD’s, illegal downloading until now; Digital music streaming underlines this theory. In that case we have analyzed Spotify as one of the fastest growing online music programs in the business. From their start in 2008 Spotify has contributed to renew the music and revolutionize the music industry with continuous launch of new services, markets and networks. Their merge with Facebook in the fall 2011 had significant impact on their services and is also something this paper touches upon. Throughout the paper we gathered valuable information from Ms Catherine Solheim, Country manager at Spotify Norway, and the Norwegian Electronic artist, Ugress, who has Spotify as his most important distribution channel.
In order to get an adequate and accurate view of Spotify’s external environment we have emphasized on PESTEL - framework and Porters 5 Forces throughout the paper. We found

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