Premium Essay

Spotify Strategy

In: Business and Management

Submitted By Chugvrath
Words 4831
Pages 20
Project Summary

Introduction
Spotify is an online commercial music streaming platform that, despite earning a massive sum of Euros in 2012, has never recorded any profit ever since its launch in 2008. Royalty costs and increases in licensing costs cover most of Spotify’s expenses, and these fees continue to be a problem as it prevents Spotify from making a profit.

Purpose
This paper aims to improve Spotify’s strategies in order to make its business more profitable.

Method
This paper will use secondary data to analyze both Spotify’s external and internal environments. The main tools used here are: PEST, SWOT and the Five Forces analysis. The paper will give insight into Spotify’s pricing and advertising methods, suggesting ways to make it more appealing to the everyday user and how to draw more customers in more efficiently. We will evaluate how long-term subscriptions and bonuses may keep a subscriber loyal to their services. Lastly we will look at how redeveloping their website can make it look more professional as well as make it easier for customers to find out information about Spotify.

Conclusion
At the end, this paper indicated that Spotify should lower its prices, collaborate with phone operators, reward loyal customers and implement bonus periods, as well as invest in smarter advertising and a better, more professional website.

TABLE OF CONTENTS

1. Organization Overview
1.1 General information
1.2 Mission, vision and values
2. Strategic Problem Analysis
3. External Analysis
3.1 PEST Analysis
3.2 Five Forces
3.3 Summary
4. Internal analysis
4.1 Firm Capabilities
4.2 SWOT Analysis
4.3 Summary
5. Possible strategic solutions
6. Evaluating strategic solutions
Suitability
Acceptability
Feasibility
7. Implementation
8. Conclusion

1. Organization Overview

1.1 General information
Spotify is an online

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