SPOTIFY Table of Contents Executive Summary 3 Introduction 3 Developing Enterprise Strategy 4 Strategic Tools 5 The Five Forces Model 5 Three Generic Strategies 6 Value Chain 7 Evaluating Enterprise Strategy 7 Formulation and Evaluation of Alternate Strategies 9 E-Marketing 9 Customer Relationship Management 10 Supply Chain Management 11 Conclusion and Recommendations 12 Reference 14 Executive Summary SpotifyTM is cloud based music streaming service delivered via desktop and mobile phones…
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By integrating enterprise’s strategy with information system strategy, SpotifyTM will be able to implement a successful business model. Introduction SpotifyTM provides cloud based music streaming service delivered via internet mobile phones which helps subscribers to access vast database of music at any place without bothering about storage capacity of physical media. The cloud based business model is structured to store enormous amount of data in virtual space without requiring physical storage devices like hard drives. The data stored by subscribers can be accessed from any remote location if the internet is available. By formulating and integrating organisation strategy with information system strategy, SpotifyTM will be able to increase their subscriber base as cloud based technology will help to reduce cost, provide faster access to any remote location, and manage existing resources efficiently (Miller, 2011, pp.8-20). Developing Enterprise Strategy Strategic planning is the process of formulating, implementing and assessing long term mission and vision of an organisation. Strategies are generally developed at the top level of the management and are implemented throughout the enterprise with the help of technology, human resources and process (Doyle, 2001, pp.2-14). SpotifyTM is cloud based music streaming service delivered via desktop and mobile phones. It was launched in October 2008 and offers subscribers access to vast database of songs via internet. The word ‘enterprise strategy’ implies the mission and vision of SpotifyTM which express where it wants to reach in future and how it expects to get there. (Source: OnbileTM, 2012) SpotifyTM aims to provide unlimited access to its subscribers with vast database of songs through internet using cloud based technology. Thus, the strategy according to the business model of SpotifyTM is to provide unlimited choice of songs database to subscribers at shortest time and affordable price. Technology and information system can help the SpotifyTM to achieve its goals. As the company offers cloud based technology to deliver services to subscribers, with the help of technology it will be able to reach customers at anywhere in the world. In addition to that, cloud computing is technology which can store unlimited amount data in virtual space. This means that while existing technology requires customers to carry some sort of memory device to transfer data from one site to another, cloud technology requires user to have only access to internet. The files can be downloaded and saved in any network with the help of remote access (Franklin and Chee, 2010, pp.45-62). Strategic Tools The Five Forces Model Threat of New Entrants - SpotifyTM will be able to provide their subscriber unlimited virtual space to store and stream music at affordable cost with the help of cloud based technology. Cloud computing is a relatively new technology and requires experience, knowledge, and proper database organisation to offer uninterrupted services to customers. The technology of SpotifyTM has sufficient experience and expertise to implement their strategy and hence it is unlikely to face any threat from new
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Spotify is a Swedish company that gives streaming services to consumers worldwide, and makes money from it through the advertisements and merchandise sales posted in the site as consumers stream for music. With an estimated consumer base of almost 7 million users, Spotify is aiming to expand its market and make real business out of streaming music.
It was launched in October 2008 and offers subscribers access to vast database of music via internet. To maintain such large database the company would require effective managing of its information system. The organisation strategy and the information strategy of SpotifyTM depend on the business strategy of the company.
This task was played by using the company’s strategy that have been formulated and implemented over the years. By discussing the external and internal environments of the company, it is revealed that the use of PEST analysis and SWOT analysis are two important theories that serves as evaluation tools for discovering how well the company has been performing over the years and how best it can do in the nearest future.
Every organization has business and strategic goals that it wishes to achieve (McCrohan & Harvey, 2008). This report gives illustrative information on how organizations can use information systems to their advantage. It gives details on how Spotify uses information system in enhancing its competitive nature in the ever-changing information needs of the current world.
The record labels are both independent and radical; for example Universal, Warmer Music Group, Sony, and EMI. The music industry provides services through all the operating systems to satisfy the customers. The competition is stiff because some companies are upcoming and they are fighting for the customers.
On a day-to-day basis, the company utilizes technology in conducting their operations. Additionally, the management uses generic marketing strategy in products and services to consumers. In addition to using Apple airplay, Denon and Marantz, Logitech squeezebox, Onkyo Network-Capable Receivers and Sonos Digital Music Systems, the company employs a combination of marketing strategies in promoting their products to clients.
The newly formed company, with offices in London, Luxembourg, and Stockholm, offered two core services, an ad-supported, free, listen-only music only player with access to 6 million tracks and a premium version for $12 monthly subscription (Aaker & McLoughlin .p.121).
The greatest challenge CBRM City council is currently facing is the use of non-durable materials for construction. As such, most buildings collapse within a short time. Moreover, materials that are used for construction are difficult to work with and this has increased the cost of making new constructions.
This means they must segment their place in market. Because of recent activities, companies like MFlow are taking away users and profits from Spotify. Betting the farm on a core business model of scrobbling will not bring in necessary profits to survive loses already