2. • Music streaming platform founded in Sweden
• Currently 40 million paid users
• Has yet to turn a profit
• Growing competition in the market
• Plans to go public in the near future
Situation
3. SWOT
Strengths
Threats
Weaknesses
Opportunities
-First mover advantage with being an
established player in the market
-Largest paid-subscription base
-Artist must make their music available even
to free users.
-Backlash from music artist in regards to low
pay
-Heavy independence on Premium Users
-Online music streaming has potential to be
around for a long period of time
-Music Video streaming
-Haven’t gone into large markets such as
India, yet
-Heavy competition from big players, such as
Apple
-Loss of interest from Premium Users
-Technological advances in the future
4. • Turn a profit- especially after becoming a public company
• Royalties keep Spotify from turning a profit
• Music labels hold negotiating power
Objectives and
Issues/Opportunities
5. • Spotify 4 P’s Strategy- Product, Positioning, Pricing, Placement
• Positioning- Spotify’s strongest position in the music streaming market is the fact they
allow free users to use its service. This is what separates them from big competition like
Apple Radio, Title, and many others.
• Pricing- Spotify is matching its prices with big competitors like google play and also Apple
Radio. Although Spotify offers better offers to groups of people like students.
• Product/Placement- Spotify has been doing a good job at spreading their market, it
originally started in Europe but with good advertising it has moved to 58 different
countries. Spotify plans to do more marketing with in its free membership by letting
outside companies use there service to advertise to their customers, this will allow
Spotify’s advertising and free membership profits to rise.
Strategy
6. • Targeting public transit hubs and individual trains/buses
• While riding, consumers are usually fixated on their music
• Ideal time to present them with music-related promotion
• Our plan will infringe on Apple’s marketing real estate
• Establish relationships & promote local artists
• Create a competitive advantage for Spotify
Action
