Pandora Internet Radio: video - Movie Review Example

QUESTION The business model adapted by Pandora was very risky. The company did not follow the traditional method and business model of an internet radio company. Because of highly risky model, the company has been able to report high profits and revenues. Many internet based organizations have failed to report high profits like Pandora. The company faced different challenges while transforming itself from a B2B organization to a consumer model. The company faced different challenges. One of the challenges was about the uncertainty of the future and whether the consumers would accept such a business model.

This model was a new model and it has not been implemented before, so it was a challenging situation for the company. Pandora is about personalizing the radio. The company has analyzed the music industry for the last 11 years as said by the CEO of the company. The company has worked hard on analyzing the characteristics of different types of music listener and thus the business model has been developed to meet the customization. Advertising offered at Pandora is also customized so that the main target market of the company is able to reach.

The company aims to analyze the target market and then advertisements are presented to each of the target market so that the ads are more successful. So, with customized ads the company is able to charge more prices for advertisements on the radio and thus it has helped in achieving higher profits.The challenges that the company has faced while transforming into such a model was to collect the data of the consumers and then formulate different market segments on the basis of these segments and then offer different advertisements to these market segments accordingly.

Therefore a new system was to develop that was never built before. The company had to implement such a high class system and it would have been another important challenge. Question 2Advertising options that the company has selected was word of mouth. Word of mouth allowed the company to expand the message of the company to more and more people. The company used social media websites such as Facebook, twitter and YouTube to a great effect. These websites helped the company in expanding the message.

Social media websites helped the company in expanding its messages and as people liked the business model of Pandora and thus, they further shared the message to their friends and family. So, all in all it enabled the company to exponential spread the message and it reaches to more and more people. This has been the secret of success for the company. Question 3Joe has provided different opportunities for career. One of the advices that Joe has given is about the potential in the advertising radio market.

CEO of the company has highlighted the opportunity of growth and potential in the market. However, it is important that the marketers and managers analyze the potential properly and then formulate strategies to cater these potential in order to be successful.