This SWOT analysis evaluates the potential strengths, weaknesses, opportunities, and threats of Spotify. The strengths include proven success of similar products, easy marketability to target audiences, and potential for social sharing and mobile advertising. Weaknesses are competition from established companies, difficulty attracting investors, and risk of technological obsolescence. Opportunities include expanding into new markets, positive partnerships, and job creation. Threats involve loss of market share, outdated technology, legal battles, and lack of funding to continue developing the product.

1. SWOT Analysis
S
W
Similar products are proven successes
Spotify is a growing product that is easily
marketable to chosen target market
Simple idea that will be easy to nurture
Wi-Fi zones mean users can use Spotify
on the go, and could therefore be used as
a form of unintentional mobile
advertisement
Spotify can be used a social tool which
can in turn bring new users through
friendship groups
O
Similar products already taking up
complete share of market
Up against most popular company
in electronics production
Potential investors may be hard to
come by in current economic
climate
Spotify may want a lot of money in
return for their product
Technological features could be
restricted which could lead to
difficulty in proving a unique selling
point and a product to entice
consumers and sponsors alike
T
Technology rapidly progressing allows for
potential expansion in market in to fields so
far undiscovered
Could become aligned with a chosen charity,
and company could benefit through positive
tone relayed through media
A company could take Spotify’s market share
may contact you in hope that you can market
their product instead of Spotify’s
Could provide jobs for those without via
manufacture within Britain, therefore gaining
a patriotic following
Could enter market as a much cheaper
product, therefore taking customers from
direct rival Apple
Could change whole interface of market by
offering a new purchasing scheme where
prices are dictated by amount of sales
gathered (lowered upon each purchase), this
income is then given back to consumer until
level and fair price is reached
You could offer equal shares in company in
hope of looked upon as a community
centered organisation
Competition will be fierce in
market where great products
can flop through poor
promotion
Product could become quickly
outdated via advancement of
technology, and could in turn
lead to huge sums having to be
invested could continue product,
or production could be halted
due to lack of funding
Spotify may lose market share to
future rivals who do not want to
share their product with you
Use of Apple’s technology could
lead to a court case which could
be damage to reputation and
finance