Spotify: Face the Music (Update 2019) Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Spotify: Face the Music (Update 2019) Case Study Help

One of the explanations for the success of Spotify is its nature as a platform which connects and creates value for several players in the value chain. Who are some of the players and how is value created for them?

In the preceding months, Spotify has represented the purchase of different podcasting organizations i.e. Parcast – content, Anchor – creation tools, and Gilmet media – content and publishing. The investment of Spotify in such areas is primarily dependent on the notion to drive the virtuous cycle. This led to the increased involvement of the organization in podcast content. Considering the distribution of podcast by the platforms, podcasters were paid a share of ad revenue of platform.

The continuation of podcasting service was primarily an attempt made by Spotify to lead the production of original content for driving increased differentiation and engagement. Despite the small size of the podcasting market, it had demonstrated rapid growth followed by an estimated revenue generation of about $314 million in the entire region of United States. Similarly, it was also expected to bring significant improvement in revenue generation by Podcast to about $659 million in the year 2020.

As a CIO, you should consider internal and external influences. Provide a SWOT with up to 3 topics per quadrant and justify why they are a strength, weakness, opportunity or threat to Spotify (in other words, be specific).

Strengths:

In the streaming services, Spotify was the market leader with an increased revenue generation as well as increased number of users.
Spotify maintains its top position in the music industry with about 96 million paid customers and about 200 million total users.
The revenue growth of Spotify had been stable in the year 2018, representing around$5.26 billion revenues with decreased operating loss from $378 million to about $48 million.
Spotify has been involved in podcasting service to create original content to be offered to the potential consumer base.

Weakness:

Low royalties is one of the issue for which Spotify has been criticized not only by users but also artists.
Despite the increase in revenue growth, Spotify lack capabilities to remain competitive against three leaders of the music industry.

Opportunities:

Spotify can differentiate its services from leading competitors in the music industry to gain a competitive advantage.
A significant increase in the paid subscribers would bring improvement in the revenue generation allowing it to cover previous operating losses.
Increased focus on podcasting service would allow Spotify to create competitive content and improve the engagement of users with its application.

Threats:

Inability of Spotify to introduce a differentiated product would influence its financial status negatively.
The organization is posed by an increased threat of competition by the leading players.

Continuous loss and lack of users’ interest might result in loss of the potential user base................................

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