Spotify

Strategy project
• Company overview (including general numbers, mission, vision and values 🡪 bullet
points)
• Industry overview (competitors)
• Competitive analysis
• Competitive advantage (strategy conclusions)
• Mission, Vision and values (Level of ambition)
• PESTEL – Environmental analysis (with weights and interconnections)
• Porter five forces
• Market matrix
• Mapping the market (Matrix)
• Internal analysis (value chain analysis, VRIN and assessment of capabilities and summary
in the matrix)
• Comparative advantage
• SWOT (Core strenghts and weakenesses)
• Industry foresights (5 foresights)
• Session 5
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Company overview
Industry review
Competitive analysis
Company overview
Competitive advantage
Guiding Principles
About Spotify
External analysis
Internal analysis
Spotify is a Swedish audio streaming and media services provider founded on 23 April 2006 by Daniel Ek and Martin Lorentzon. It is one of the
SWOT
largest music streaming service providers, with over 574 million monthly active users, including 226 million paying subscribers, as of
September 2023. Spotify offers digital copyright restricted recorded audio content, including more than 100 million songs and five million
podcasts, from record labels and media companies. Spotify is available in Europe, Africa, the Americas, Asia, and Oceania, with a total
availability in 184 markets.

Industry foresights Mission Vision

“Our mission is to unlock the potential of human creativity
—by giving a million creative artists the opportunity to live Become the World’s Creator Platform
Session 5
off their art and billions of fans the opportunity to enjoy
and be inspired by it.”

Supporting artist creativity and improve the listener

experience
Values
Sustainability Mission: Net zero gases emission in 2030 and Innovative, Sincere, passionate and
leveraging platform to raise awareness Collaborative
 Spotify Business Model Canvas
Spotify offers digital copyright restricted recorded audio content, including more than 100 million songs and five million podcasts, from record
Company overview labels and media companies. As a freemium service, basic features are free with advertisements and limited control, while additional features,
such as offline listening and commercial-free listening, are offered via paid subscriptions. Users can search for music based on artist, album,
Industry review or genre, and can create, edit, and share playlists.Unlike physical or download sales, which pay artists a fixed price per song or album sold,
Spotify pays royalties based on the number of artist streams as a proportion of total songs streamed. It distributes approximately 70% of its
Competitive analysis
total revenue to rights holders (often record labels), who then pay artists based on individual agreements.
Competitive advantage
Guiding Principles

External analysis
Internal analysis

SWOT

Industry foresights

Session 5
 Competitive Analysis Upgrade John Doe

Company overview
Industry review
Competitive analysis
Competitive advantage
Guiding Principles

External analysis
Internal analysis

SWOT

Industry foresights

Session 5

Play Follow
 Porter’s Five Forces Model
Porter's Five Forces Framework here is used as method for analysing market competition of Spotify. It draws from industrial
Company overview organization economics to derive five forces that determine the competitive intensity and, therefore, the attractiveness of an
Industry review industry in terms of its profitability. An"unattractive" industry is one in which the effect of these five forces reduces overall
profitability.
Competitive analysis
Competitive advantage Threat of New Bargaining Power Bargaining Power Threat of Substitute Intensity of
Entrants: LOW of Suppliers: of Buyers: Products or Competitive
Guiding Principles MODERATE LOW MODERATE HIGH Services: MODERATE Rivalry: HIGH
1.Economies of Scale 1.Integration of Google
Spotify benefits from 1.Diverse Customer 1. Availability of 1.Market Growth:The
Cloud Services: Base: With a mix of
economies of scale, Substitutes : A continuous expansion
Transitioning to subscribers
having a large plethora of music of the digital music
External analysis Google Cloud provides (individuals, students, streaming services streaming industry
subscriber base that Spotify a more robust
reduces average costs families, commercial) exist, but Spotify’s implies a growing pie
Internal analysis infrastructure, worldwide, buyer
per user as it grows. differentiation through for all competitors,
potentially enhancing groups have varied
2. Product service quality, content which can reduce
supplier collaboration sensitivity to price and
SWOT Differentiation: Spotify quantity, and user rivalry intensity.
and content delivery. service changes.
has developed experience adds to its 2. Number of
2. Concentration of 2. Switching Costs
proprietary algorithms competitive edge. Competitors: There are
Suppliers: Few major Financially, switching
contributing to a 2. Performance and several strong
record labels control a costs are low, but
distinct product Cost: Spotify's service competitors in the
significant portion of community and
offering that new quality and price point market, making the
the music available for playlist personalization
entrants would find compared to competitive
streaming, thereby create a higher "soft"
difficult to replicate. performance make it a environment fierce.
having more switching cost.
3. Brand Value strong competitor 3. Industry
bargaining power. 3. Price Sensitivity: against traditional Concentration: Spotify,
3. Importance of Especially among
4.Access to Distribution substitutes. as a market leader,
Industry foresights Content to Spotify sensitive segments like
Channels 3. Switching Costs for faces intense rivalry
students, can inform Consumers: Significant from both established
4. Cost of Changing the power buyers
5. Capital due to personalized firms and new
Suppliers have.
Session 5 Requirements content such as entrants aiming for
4. Availability of playlists and saved market share.
Information: music libraries which
are not easily
transferred to other
platforms.
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Company overview
Industry review
Competitive analysis
Competitive advantage
Guiding Principles
Our Services
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Internal analysis

SWOT

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Industry foresights 02 Officiis debitis

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Session 5

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Company overview
Industry review
Competitive analysis
Competitive advantage
Guiding Principles
Achievements
External analysis
Awesome Projects
Internal analysis

SWOT

20k 50+ 15+ 35k

Industry foresights

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Session 5
Achieved Achieved Achieved Achieved
 Value Chain Upgrade John Doe

Company overview
Industry review
Competitive analysis
Competitive advantage
Guiding Principles

External analysis
Internal analysis

SWOT

Industry foresights

Session 5
 Market Matrix
Company overview
Industry review
Competitive analysis
Competitive advantage
Guiding Principles

External analysis
Internal analysis

SWOT

Industry foresights

Session 5
 Market Matrix
Market Matrix Customers Segment Spotify Free Spotify Premium
Industry review
EMEA Individuals E E
Competitive analysis
Student N E
Competitive advantage
Guiding Principles
Spotify Duo N E

Family N E

External analysis Individuals E E

Internal analysis APAC Student N E

SWOT Spotify Duo N E

Family N E

Individuals E E
LATAM Student N E
Industry foresights Spotify Duo N E

Session 5
Family N E

Source:
 Primary Activities
Company overview Inbound Operations Outbound Marketing & Research and
Industry review Logistics Logistics Sales Development
Competitive analysis
Competitive advantage Music Licences Music Library Mobile apps Influencers Investment in R&D
Guiding Principles iOS & Android marketing
Access to music User Interface Website Online advertising Embracing the
culture of
External analysis innovation
Internal analysis IT infrastructure Recommendation Partnerships with Social media New product
algorithms manufacturers marketing development
SWOT
Recruiting the right Spotify advertising Stream activities Post Advertising Existing Product
talent Development
Analytics methods Social media Pricing Spotify DJ plays
distribution differentiation music based on
channels strategy listeners’ digital
Industry foresights
footprint
Spotify Advertising Customer Generative AI
Session 5 acquisition Extension of the
cost (CAC) algorithm
$25 dollar/user

Process
Management
 Support Activities
Company overview
Industry review Customer Service Infrastructure HR Management Procurement
Competitive analysis
Competitive advantage
Email support Physical and Talent acquisition Paying the consultancy
Guiding Principles Technological fees for the recruitment
infrastructure companies
Live chat bots Data Centers Placement trainings Acquisition of the
External analysis hardware & software
Internal analysis
Hotline support CDNs Employee Management Negotiating competitive
SWOT deals with the music
creators
After-Sale Service Networking infrastructure Talent retention
Troubleshooting technical Performance appraisal
problems
Industry foresights
Answering customer
Session 5 questions
Providing refunds and
cancellations
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Welcome

About Us

Our Teams

Agenda
Our Goals
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Our Goals

Gallery
Smart Goals Goal 03 Goal 04
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Company overview
Industry review
Competitive analysis
Competitive advantage
Guiding Principles
Gallery
External analysis
Internal analysis

SWOT

Industry foresights

Session 5
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Company overview
Industry review
Competitive analysis
Best prices
Competitive advantage
Guiding Principles
Pricing
External analysis
Internal analysis

SWOT Mini Individual Duo

From Rs.7/day Rs. 117/month Rs. 149/month

Ad-free music listening

Group Session

Industry foresights
Song downloads 30 songs 10k songs 10k songs

Session 5
No. of Devices 1 mobile 5 devices 5 devices per account
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Company overview
Industry review
Despacito
Competitive analysis
Competitive advantage
Guiding Principles
Contact Us
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Internal analysis

SWOT
Phone :
Spotify
+92 666 8888 000, +0123 456 78
Despacito
Luis Fonsi, Daddy Yankee

Address :
0:23 -3:25
66 Brooklynn Golden Street Line New York, USA
Industry foresights

Session 5
Follow us :

@spotifyofficial
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Company overview
Industry review
Competitive analysis
Competitive advantage
Guiding Principles
Our Team
External analysis
Internal analysis

SWOT

Industry foresights

Charles Davide Sezgi Anel Alexia

Session 5 Glot Breidenbach Öztürk Akhmetova Pasquini
Artist Artist Artist Artist Artist
 Thank You

Despacito
Luis Fonsi, Daddy Yankee
0:23 -3:25
Company overview
Industry review
Competitive analysis
Competitive advantage
Guiding Principles

External analysis
Internal analysis

SWOT

Industry foresights

Session 5