Presentation Type
Presentation
Faculty Mentor’s Full Name
Simona Stan
Faculty Mentor’s Department
College of Business
Abstract / Artist's Statement
Spotify is an online streaming platform that allows consumers to listen to music and podcasts for free with advertising or paying a monthly subscription for ad-free access. Since its founding in 2006, it exploded into the music scene, taking hold of a significant portion of market share in the media and entertainment industry. As always in the business world, however, there is room for growth. The purpose of this analysis is to evaluate how Spotify is performing as a company, both internally and compared to its competitors. After exploring Spotify’s business practices and the state of its industry through business articles, industry analyses, and financial reports, this analysis will determine what strengths and weaknesses Spotify has, as well as what opportunities and threats to its ability to increase profitability exist. Findings from this analysis show that Spotify is struggling to compete with rival companies in the Movies & Entertainment sub-industry, primarily due to the high cost of licensing fees to artists in the music industry. This report summarizes the information from the internal and external analyses and provides recommendations for Spotify’s next steps toward achieving growth and competitive advantage in its sub-industry. These recommendations include continuing the horizontal integration of non-music related audio products, expanding into untapped international markets, and financing original content to create a stream of revenue that is not significantly hampered by the continued cost of licensing from a third party.
Category
Social Sciences
Spotify: A Strategic Analysis of its Strengths, Weaknesses, Opportunities, and Threats
UC 332
Spotify is an online streaming platform that allows consumers to listen to music and podcasts for free with advertising or paying a monthly subscription for ad-free access. Since its founding in 2006, it exploded into the music scene, taking hold of a significant portion of market share in the media and entertainment industry. As always in the business world, however, there is room for growth. The purpose of this analysis is to evaluate how Spotify is performing as a company, both internally and compared to its competitors. After exploring Spotify’s business practices and the state of its industry through business articles, industry analyses, and financial reports, this analysis will determine what strengths and weaknesses Spotify has, as well as what opportunities and threats to its ability to increase profitability exist. Findings from this analysis show that Spotify is struggling to compete with rival companies in the Movies & Entertainment sub-industry, primarily due to the high cost of licensing fees to artists in the music industry. This report summarizes the information from the internal and external analyses and provides recommendations for Spotify’s next steps toward achieving growth and competitive advantage in its sub-industry. These recommendations include continuing the horizontal integration of non-music related audio products, expanding into untapped international markets, and financing original content to create a stream of revenue that is not significantly hampered by the continued cost of licensing from a third party.