Analysis on-sotify
- 1. The Business Model Canvas 1155084389 TING KaWan 1155121070 MA Woan Chuen 1155123859 CHOU Wen Ling
- 2. Customer Segments Customers who enjoythe free-of- charge service Customers who use multiple devices (remote control) Music Cooperation/ Record Company/ Talent
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- 4. Channels • Web • Phoneapplication • Social Network Sites (SNS) • TV • Cars • Events • Advertisements
- 5. Customer Relationships Increase "stickiness" Spotify recommendcustomerized song playlist Provide multiple subscription plan Family plan/ the more months you subscribe, the lower you pay
- 6. Revenue Streams • Ads •Subscription
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- 8. Key Activities Software Development &Maintenance: --> Algorithm --> Big data --> IT talents/expertise
- 9. Key Resources • Patentsand Copyrights • Partnerships • Stock Option Pool • Human: knowledge • Customer databases
- 10. Cost Structure Value-driven business model: Valuecreation eg. Brand, Reputation Characteristics: --> Economic of Scope: Same marketing strategies being applied in various geographical areas to promote the platform/music (rather than a specified music product) --> Fixed Costs
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- 12. SWOT Analysis Strengths Weaknesses Internal• User-friendly Interface • Loyal users • Freemium • Customerised Playlist • Market dominant and first market enterer • Low revenue for artists • Artists' Resistance to launch music on the platform • Advertisement disturbance eg. Pop up banner External • Development opportunity for Independent Artists to sell their music • World-wide markets • Strong competition from other music platform • Low cost for switching to other platforms Opportunities Threats
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- 14. Michael E. Porter’s Five Forces •BargainingPower of Suppliers - Low --> Numerous music suppliers --> Big attractive platforms for music producers •Bargaining Power of Buyers – Low --> Fixed music plan --> Market domination --> User inertia/habit
- 15. Michael E. Porter’s Five Forces •Threat of New Entrants - Low --> Market leader --> High cost & risk for new comers to enter the music streaming market --> Strong database • Threat of substitution -Low --> Freemium --> Remote Control: Support multiple device controlling
- 16. Michael E. Porter’s Five Forces •Intensity of Rivalry among Established Firms – Intense --> Competitions from large streaming platform eg. Apple Music, Amazon, KKBox
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