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Spotify

In: Film and Music

Submitted By johnyop
Words 413
Pages 2
position as leaders within the market. Operating in 58 countries with 75m total users (Dredge, 2015), the strategy of diversification through innovation is key to ensuring success, evident in the new concert feature (Music Week, 2015). Similarly the large catalogue (Peckham, 2014) and good relationships with consumers through strong marketing communications online help to reach a large consumer base.
Some key weaknesses include poor relationships with some popular artists. An example is Taylor Swift (McIntyre, 2015) and this may impact Spotify’s reputation. The low level of consumers moving to the paid model is also a weakness, creating a larger issue of poor finances (Dredge, 2015), also as a result of the reliance on advertising income. This limits the amount of capital available for reinvestment.
Opportunities for Spotify include building stronger relationships with artists and consumers, to gain a larger market share and to increase paid subscribers. This can be completed through education and further diversification in the market. Also seeking to launch in developing countries such as Africa, like they are in Japan (Music Week, 2015), could increase market share and profitability.
Competitors within the market including Pandora, Deezer and Apple Music are all threats to Spotify (Dredge, 2014). The rapid changing technologies and developments could threaten Spotify’s position as market leader because Spotify have poor finances for reinvestment to keep up with competitors. Finally, piracy and competitors like Songza (Songza, 2015) which offer music without advertisements for free, are ongoing threats, seeing potential consumers seek alternatives to Spotify. Firm Analysis
At the moment Spotify is the market leader for music streaming services and has achieved this thanks to its unique resources: the people. A golden rule at Spotify is “hire great…...

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