WORD COUNT: 3390
Executive Summary 3
Industry Overview 4
PEST Analysis 5
Porter’s 5 forces 6
Power of Suppliers 6
Power of Buyers 6
Threat of new Entrance 6
Threat of Substitutes 6
Industry Rivalry 6
Strategic Groups 7
Customer Segmentation 8
What is happening inside the organisation 9
Purpose, Mission, Objectives 9
Resources and Activities/Competencies 9
Organisational Culture and Stakeholders 10
Porter’s Added Value Chain 11
Spotify Strategy & Issues 13
Source: (White, 2011) 21
The aim of the following strategy context report is to analyze the digital music streaming industry in the United Kingdom and discuss Spotify’s strategic approach within its framework. It also provides recommendations of how to solve arising strategic issues, which we feel, are of fundamental importance to the company. To carry out and ultimately interpret our analysis of the macro environment we made use of various analytical tools such as PEST, Porters Five Forces, strategic group analysis and customer segmentation.
In addition to the above the internal environment of the enterprise has been examined considering the companies Purpose, Mission and Objectives as well as using techniques like the analysis of resources and competencies, the Porters value chain and a stakeholder analysis.
Based on our findings we are able to present the following recommendations:
* Improve the quality of their radio service.
* Engage in joint ventures with TV-manufacturers to create individual music channels.
* Remove Facebook as a necessity to subscribe to their services.
* Integrate the premium and unlimited service into one product
The industry Spotify is operating in can be defined as the digital music distribution industry. However, we are not going to...