In this case study report, we leverage the Porters five forces framework to help us to recognize and analyze the important forces that are determining the profitability of the global music streaming industry. Using Porters five forces, we will evaluate the nature of competitiveness in the global music streaming industry and the impact of the five forces on Spotify, and its competitors as well as the entire industry structure and help us understand strategies Spotify is using to stay competitive, accordingly.
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The music streaming industry is a prominent oligopoly with major players Spotify, Apple music, Amazon music, among others. Spotify is the largest music streaming service accounting for 47.8% market share based on streams with major competitors Apple having 10.6% market shares respectively (Wagner 2018). The music streaming service industry is very competitive and by using the Porters five forces analysis below, we discuss major ways in which the competition has affected the growth of Spotify highlighting major threats, opportunities and points at which the competition is most intense.
Spotify Technology S.A is a music streaming service mainly operating in North America, Europe, Latin America, among others. It offers both premium (for subscription) and ad-supported (free) versions of its streaming service. The music streaming industry market is highly oligopolistic with major players Spotify, Apple Music, and Amazon prime music having over 120million in number of combined subscribers in 2018.
However, various macro factors are currently impacting the growth of Spotify. Using a PESTLE analysis, we describe how certain external environmental factors such as President Trump’s Music Modernization Act, the ‘Netflix tax’, changing demographics, or new technological developments such as the rise of smart speakers, are affecting Spotify growth.
Spotify Technology S.A is a music streaming service mainly operating in North America, Europe, Latin America, among others. It offers both premium (for subscription) and ad-supported (free) versions of its streaming service. The music streaming industry market is highly oligopolistic with major players Spotify, Apple Music, and Amazon prime music having over 120million in number of combined subscribers in 2018.
However, various macro factors are currently impacting the growth of Spotify. Using a PESTLE analysis, we describe how certain external environmental factors such as President Trump’s Music Modernization Act, the ‘Netflix tax’, changing demographics, or new technological developments such as the rise of smart speakers, are affecting Spotify growth.
The music streaming industry is a prominent oligopoly with major players Spotify, Apple music, Amazon music, among others. Spotify is the largest music streaming service accounting for 47.8% market share based on streams with major competitors Apple having 10.6% market shares respectively (Wagner 2018). The music streaming service industry is very competitive and by using the Porters five forces analysis below, we discuss major ways in which the competition has affected the growth of Spotify highlighting major threats, opportunities and points at which the competition is most intense.
Businesses do not operate in a vacuum, they operate in a dynamic environment with factors that directly influence their operations and success potential. These factors include internal (eg human resources and organizational structure) and external factors such as customers and competitors. Each of these factors have the potential to influence the performance of organizations. It is thus essential for organizations to often study their environment and strategize accordingly, especially in today’s volatile market. As shown by history, firms that fail to understand their environment and strategize accordingly are likely to go obsolete. The report used PESTLE analysis to analyze the different external factors that affect businesses.
Launched in 2013, Chillhop Music is a Dutch label & publishing company focused on Instrumental Hip Hop & Lofi Hip Hop. Starting out as a hobby project to promote an underground type of music, Chillhop Music has since grown to be one of the leading labels in the genre, with over 3 Million YouTube subscribers and more than 1.5 Billion streams a year. In this report, PESTLE and SWOT frameworks were used to assess the strategic position of Chillhop music. The report analyzed macro and micro environment factors that are likely to impact the company’s growth and how the company can leverage its strengths to mitigate its weaknesses and external threats
This report critically evaluates one retailer’s responses to a current retail market issue in comparison with one or more retailers in the same retail sector as our chosen retailer. This report uses examples of Argos and John Lewis to examine the major issues of the high street and at the same time analyse their varying responses to understand the ever-evolving nature of high street retailing, and what its future may hold.
Founded by Reed Hasting and Marc Randolph, Netflix is the biggest American media service provider and production company. The streaming giant has grown to become the biggest media streaming service in the world, with more than 183 million paid subscribers worldwide and viewership of at least 37% global internet users.As the biggest online streaming service globally, Netflix has been enjoying consistent growth during the last few years. But unlike rivals, it was the biggest beneficiary of the global lockdown and stay-at-home measures introduced all across the world following the onset of Covid-19. Global subscriber base during the first 3months of 2020 alone doubled. In the US alone, it added close to 7million new subscribers in the first quarter of 2020, compared to only 550,000 it added during the same quarter in 2019.
As a result, Netflix is much better positioned for a post-COVID-19 world compared to rivals. Using SWOT, this report examine why even though rising competition looms large and content production costs remain a major weakness, the lasting legacy of covid-19 on streaming habits, in line with a continued shift to online/mobile streaming will play a key role in shaping the streaming battlefield, arguing that Netflix is in a much better shape to dominate compared to rivals.
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