StudentShare solutions
Triangle menu

Analysis of Spotify's strategy - Case Study Example

This paper takes off from an examination of the historical and current business moves of Spotify, alongside its traditional cost structure and other relevant data, to piece together its current and emerging business strategies. From there, the paper uses theoretical analytical models, among them SWOT and Porter’s Five Forces models, to assess and analyze the soundness of Spotify’s business strategies, and to recommend ways forward for the firm based on the findings of that analysis.
Piecing Together Spotify’s Current and Evolving Strategy
Newer data reveals that the total user base of Spotify has grown to 24 million users who are active by 2013, with the number of paying subscribers roughly equal to one quarter of that number, or six million. Moreover, the company has pushed to widen the range of free music it is able to offer to mobile users, aiming to break free from a model where users have to pay 10 British pounds in the UK, to be able to access music from mobile devices as well as tablets. This is in line with the pricing of rivals such as Deezer, Napster and Rdio, which all charge the same monthly fee. A glimpse of its business model can be gleaned from the way it has allocated revenues to differing costs, key among them the payouts to the holders of the copyrights to the songs, which reached 188 million Euros in 2011. This payout to the holders of the song copyrights translates to 70 percent of all revenues. Since 2006 when it was launched, total payout estimate to the holders of the copyrights has reached half a billion dollars. The company has not turned a profit from its operations as of 2012 (Halliday 2013; CrunchBase 2013; Facebook 2013). Other recent developments that give a hint as to the evolving business strategy of Spotify include its first forays into advertising in the ...Show more


This paper undertakes the evaluation of the business strategies that were developed and pursued by the company using chosen theoretical models. With an eye towards considering how ICT fits into the overall strategy of the company moving forward, this paper also makes several recommendations relating to further developing Spotify’s business strategy…
Author : kundewilfredo
Analysis of Spotifys strategy essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the case study on your topic
"Analysis of Spotify's strategy"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Brand Strategy Case Analysis
This erodes their market share and gives consumers more rational choice regarding alternative or substitute products for purchase. Dunkin Donuts and Caribou Coffee, to name only two, have found success through advertising and product focus to appeal to customers with a need for value-added coffee products.
3 pages (750 words) Case Study
Competition analysis and 4p's strategy analysis
Paderno’s competition analysis To begin with, Ian described competition analysis as the evaluation of the strengths and weaknesses of current and potential competitors (13). Fleisher and Bensoussan added that the findings from the competition analysis are usually usefull in the designing a defensive and offensive business strategy that could aid in identifying threats that exist as well as the viable opportunities within the market (28-31).
4 pages (1000 words) Case Study
Business Strategy- Case Study Analysis
Apple succeeded in managing the transition by crafting a coherent strategy by marketing the iPod as a computer peripheral. The MP3 songs that could be played on the iPod were downloaded through a Mac. Later on, by transforming the iPod into a peripheral for Windows-based PCs, Apple created the potential to access a much broader market than its core customer base of loyal Mac users.
8 pages (2000 words) Case Study
Business strategy case analysis
The second part is about the latest BLU-RAY and HD-DVD discs and their future competitiveness in the market. BETAMAX is a videocassette tape recording format sold to household consumers and this technology was introduced as the first of its kind by Sony on April 16, 1975.
4 pages (1000 words) Case Study
Analysis of Competitive Strategy
The airlines industry is fiercely competitive, with too many highly motivated players striving to deliver best value to the customers. Therefore, to achieve a clear differentiation from the competition requires a holistic approach. In its efforts to pursue a service-oriented strategy, BA cannot afford to confuse itself as a premium segment or a luxury airline.
8 pages (2000 words) Case Study
Market Analysis for Entry Strategy
The other objective was to analyze if the company has achieved its vision of becoming the leader of the worldwide alcohol industry. France which was the main target market for the company over the past few years has been faced with decline in consumption of alcohol products.
16 pages (4000 words) Case Study
The vision is also organized in a manner that it provides definition for long-term outcomes for various projects as well as the frameworks with which this vision shall be achieved. This is the most
3 pages (750 words) Case Study
CASE ANALYSIS Methanex:Developing strategy in a commodity industry
This will increase market demand and also reduce cost; further increasing its competitive advantage. Methanex Management wants to see the company carry out its operations efficiently into future periods. Therefore, board should consider re-investing the
14 pages (3500 words) Case Study
SWOT Analysis for coach inc in 2012 its strategy in the accessible luxury good market
The high growth was facilitated by focusing on quality, style and competitive pricing that enabled the company to attract both middle-income and high end clients. The 2012 strategic priorities entailed
4 pages (1000 words) Case Study
Strategy analysis
With the differentiation strategy, the company offers unique products or services that offer unique attributes to consumers. The focus strategy, on the other hand, concentrates on one or two segments of the markets using differentiation or cost focus. In line with
1 pages (250 words) Case Study
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment
Contact Us