2. • Task 5: (LO3)
• Undertake a SWOT analysis for the
following product.
• New MP3 player that allows internet
streaming of songs from Spotify is going to
launch in a bid to challenge Apple’s market
domination. Produce a SWOT analysis for
this product.
3. Strengths
• You can get thousands of songs for your MP3 from Spotify.
• New technology that people will want; The public always want the
newest technology. They will also want to go one better than their
friends and others with iPods etc. that are older.
• A majority of people know how to use the internet so it will be easy
to understand and operate.
• Conventional iPod features as well internet streaming feature; this
makes it one better than the iPod.
• Easy to carry, the right size for sports activities etc.
• This will result in more music sales for Spotify, therefore upping
their income and sales.
• Other products can be sold alongside the new MP3 e.g. cases and
headphones etc.
• Some people prefer to use Spotify rather than iTunes and the Apple
products so they will prefer this product to an iPod.
4. Weaknesses
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You would need wifi or 3G at all times, this could be bad if people need to
travel and move about to places where there was none.
Most people already have an Apple iPod so won’t see the point in getting
a new MP3 player like this one.
Using this MP3 would be very similar to using a laptop due to needing a
wifi connection and streaming music off of the internet etc.
MP3s are dying out amongst people, nobody really buys them anymore.
Companies who are creating new technology need to bear in the mind the
new generation and the next best thing that will interest them.
Financially hard to make and produce for the company.
Customers have to pay for separate music files that they will download.
The amount of songs that you can get is just the same as Apple and
iTunes, there are no extras when it comes to the amount of music.
5. Opportunities
• More accounts will be made on Spotify which will in turn
create an opportunity for the brand to become more well
known.
• The sales and increasing popularity of the product will
expand the brand that makes it and also Spotify.
• Advertisements on music channels, radio
stations, billboards and TV advertisements will increase the
chances of a more mainstream audience being interested in
the product and the brands.
• If celebrities are used to endorse the products then this
could result in more people wanting it because are inspired
by celebrities and want to have the same things as
them, they also aspire to be like them.
6. Threats
• There are already so many MP3 devices and iPods in the industry
for people to buy, some may have a competitive edge on this
product. They may have different and better features that will make
people prefer others.
• Apple are known as a good and reliable make and this will make
them preferable to consumers.
• The competition between Apple and Spotify.
• Any other new MP3s that will come out in the future will be a
threat; they may have new and better features which will make
them favourable to consumers.
• Reviews on internet and articles that criticize this new product will
make people less inclined to buy it.
• Competitive prices will be a threat to the product and also the
company.
