Spotify wants to expand into portable music devices but faces some challenges. Some strengths are that Spotify is already widely used and portable music devices sell well. However, iTunes has many loyal users accustomed to Apple products who may resist change. Additionally, Spotify requires an internet connection to stream music, while iTunes allows offline listening. Offering competitive prices and deals compared to iTunes could help Spotify succeed with this new product.

1. S.W.O.T Analysis – Structured planning method used to
evaluate the Strengths, Weaknesses, Opportunities,
and Threats involved in a project or in a business venture.
Strengths – Spotify is already used by so many people but mainly on
computers and occasional phones but because it’s known for being
good then people would be likely to purchase the product.
- We know that portable music devices are always well thought
after and over 40,000 are sold per year.
- You don’t have to worry about downloading songs as they are
always there to listen to.
Weaknesses –iTunes has around 600 million users and so will cause
problems as people are so used to apple products and don’t always
agree with change just stick to what they know so it would just really
be completely new customers.
- If you are out area with no signal then you can’t listen to music,
which is a down side, and if you don’t have a lot of Internet to
use then again you might never be able to use it.
- The fact that spotify charges you monthly could be a put off as
you might not listen to music constantly so iTunes could make
more sense to use as you only buy the songs you like to listen
to and can listen to them forever if you wish.
- Also there are adverts after each song and you’re only allowed
to skip more than six songs in an hour which is irritating and if
this changed would save a lot of issues.
- Because you are not downloading the songs to the device you
have to stream which can be a problem as not everywhere has
the same coverage and so can take a while to buffer and can
get annoying since on iTunes it takes around 30 seconds to
download a song if that.

2. Opportunities –There is an opportunity to put an update on apples
newest products and then come across as better.
- If you were to offer more deals than what apple do then people
might look differently at your company and prefer spotify over
apple as they do charge more for each song although do take
money off albums.
- Because you have to pay for spotify you could look at the
opportunity for gift cards to allow people to buy them as gifts
like what apple do for songs and apps, as they might be more
inclined to look at buying spotify and the new product made
with it in mind.
Threats –Spotify would be able to cause threats upon iTunes so long
as the prices that you were offering were more reasonable because
even at 99p a song by iTunes the price you pay monthly for spotify
might not make the swap worth it or if they’re deciding which they
feel would be best for them.
- A threat on this product is that apple have apps on the well
thought of and well knock iPod’s and iPhone’s and iPad’s that
are similar but free and allow you to get the songs you want for
free without the fuss of internet usage.