SPOTIFY Table of Contents Executive Summary 3 Introduction 3 Formulate and Developing Business Strategy 4 Evaluation of Strategy 5 Formulating Alternative Strategies 8 Customer Relationship Management 9 Supply Chain Management 10 Conclusion and Recommendation 10 References 12 Executive Summary SpotifyTM is cloud based music streaming service delivered via desktop and mobile phones…
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The strategic framework of SpotifyTM will help to implement technology to sustain competitive advantage in terms of cost and efficiency. Formulating other forms of strategies such as e-marketing, CRM, or SCM as part of organisation’s strategy helps a company to mange and utilise their resources optimally. Introduction SpotifyTM provides cloud based music streaming service delivered via internet mobile phones. Through cloud computing it offers subscribers access to its vast database of music. To maintain such large database the company would require effective managing of its information system. The information system is not isolated and constitutes interaction between hardware, software, data, people, and telecommunication. These components of an information system are built to create, assemble, and distribute important data and information to people across the globe (Lucey, 2004, p.31). From the information system hierarchy model it can be said that the strategic development is a top down approach and it flows downwards from the top level management of organisation. The information system connects the top level management with people and process (Doyle, 2001, pp.2-14). ...
he business strategy of SpotifyTM is to adapt to new technology of cloud computing and generate revenues through cloud based business model which will allow subscribers unlimited access to music database at least cost and shortest time. Using the five forces model, the relative attractiveness of cloud based technology industry can be analysed as follows: Threat of New Entrants - SpotifyTM offers its subscribers a vast database of music via cloud computing technology. As a result the subscribers will have faster access to music more conveniently and even from their mobile sets, at any place any time without having them to carry memory devices. At the same time multi-user interface will not slow down the server. The users will also get unlimited storage space and remote access even if their hard disk may have limited space. All these features and facilities provided by SpotifyTM are unlikely to face threat from the new entrants. Bargaining Power of Suppliers - The cost of cloud computing is economical since the database is centralised. It also requires less space, bandwidth and power. Thus, suppliers will have limited influence over SpotifyTM business model. Bargaining Power of Buyers - Cloud computing is very cost effective as it do not require subscribers to invest extra time and money to use standalone servers. Using cloud based computing the subscriber will get the opportunity to save money on data storage cost, management cost, and software updates. Threat of Substitutes – The only threat to cloud based technology is open source computing but it is much slower and requires the subscriber to have physical memory in order to store data which makes it more expensive compared to cloud based technology. Rivalry among Existing Competitors - SpotifyTM offers cloud based
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(Spotify Essay Example | Topics and Well Written Essays - 2000 Words - 1)
“Spotify Essay Example | Topics and Well Written Essays - 2000 Words - 1”, n.d. https://studentshare.org/e-commerce/1471169-spotify.
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.
L.107-296, enacted November 2002).This act of the United States Parliament saw the creation of a key department and its departmental head according to Fischer, Fischer, Halibozek and Green (2010). The Department of Homeland Security and the ministerial position is headed by the Secretary of Homeland Security.
It was launched in October 2008 and offers subscribers access to vast database of music via internet. It faces strong competition from the like of Amazon, Google, and Apple which also offers cloud based services. In such a situation it is very important for SpotifyTM to formulate a clear and focused strategy in order to be successful and offer its services efficiently to subscribers.
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).
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