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Spotify - Essay Example

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E-COMMERCE AT SPOTIFY Executive Summary The use of e-commerce is another unique feature of the Spotify, a factor of which has been the focus of the company for some years now. The present report is therefore a detailed research analysis on the strategic role of technology in Spotify with specific emphasis on e-commerce…
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Download file to see previous pages Through the two theories, Spotify has been identified to be a major competitor in the entertainment industry but lacking a high level sense of taking advantage of opportunities that it has. Some of these opportunities are key markets in key continents like Africa and South America where virtually no markets exists for the company. With the increase of technology in all of these continents, the company is in a position to take advantage. Finally, there is a recommendation for the company to have its own software to make access to music even easier. Introduction Cloud-based music-streaming services are becoming quite common of late with the advent of high speed internet technology (Boyer et al, 2007). Spotify is one company that provides this kind of service for financial gains, meaning that the company is in a highly competitive environment where it has to gain better market shares than its competitors who have been described to be in exceed in modern times. Launched in October 2008, Spotify has gone about the provision of cloud-based music-streaming service with style with the delivery of music-streaming unto both desktop and mobile phone. Another peculiar feature of Spotify would also have to do with the availability of songs that the company has in its database as the company provides wide range of songs from different backgrounds and genres; all of which forms the basis for e-commerce. 2.0 Strategic Situation Analysis The focus of this section of the paper is going to be to look at how Spotify is currently using information system to support its business strategy. 2.1 External Environment 2.11 Political The political environment of Spotify is largely influenced by both local and global legislations and regulations that are made by government to protect the intellectual property of musicians and other works of music. Depending on royalty levels however, some musicians have been reluctant in releasing their songs for use for online services by the company as there is the fear that songs that are made available online could easily be cyber attacked (Bradley, 2010). Politically therefore, local and international legislations have somewhat affected the number of songs that the company could have access to. 2.12 Economic Spotify’s business growth and development is largely dependent on prevailing economic conditions and climates. Rising cost of living therefore affects the company’s business negatively as in such times, the larger industry to which Spotify belongs, which is the entertainment industry, is considered by many not to be a necessity but a want (Christensen et al, 1998). In effect, even though the use of information systems and e-commerce in general is expected to make products more accessible to customers, accessibility does not automatically bring about patronage in harsh economic times. 2.13 Social The social environment ...Download file to see next pagesRead More
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