Your research/case study paper will be 25% of your grade. In this analysis I’m looking for you to demonstrate analytical capabilities of not only understanding Intellectual property from our in-class discussion and reading but also how this knowledge can be used to analyze an organizations choices (successes/failures). Please ensure you reference all material not developed directly from you and utilize proper legal terminology when it comes to IP.
I’ve set up the below to give you things to think about before answering the questions. Your analysis should be developed into a well thought out and fluid paper (not Q&A style) with a maximum of 5 pages. The assignment is due in .doc/.docx format only.
Type of case and objectives
The Spotify case is a real case, pulled together from public information. It is an analytical case that sets out the facts and events related to Spotify, against the backdrop of a music industry in crisis. The case lends itself to 1) business model analysis, 2) strategic analysis, 3) considering organizational performance, 4) considering the monetization of music and the culture of online music consumers, and 5) searching for solutions to problems of corporate profitability and compensation to music rights holders. It goals are in-context analysis and development of judgement and critical thinking.
The case is interesting because of the original nature of the Spotify business model and the variety of the themes addressed, such as questioning the traditional operation of the music industry with the advent of the Internet and digitization; new modes of consumption and new habits developed online; respect for intellectual property laws and regulations online; the monetization of music and the culture of getting things for free online. Furthermore, ethical questions can be raised about the role Spotify plays in the culture of getting things for free that has developed online and that makes it difficult to monetize music.
Your Job
Think about: What are Spotify’s strengths and weakness, what distinguishes it from the competition, the opportunities and threats in its environment (SWOT analysis is the most useful in doing this).
Answer this:
1. Compared with illegal, free platforms, what are the advantages that prompt Internet users to subscribe to Spotify?
2. What are Spotify’s advantages over other legal music streaming services (see Appendix 1 of the case: Comparison of the Main Online Music Streaming Services), but also compared with online sales platforms such as iTunes? How can the company better leverage these competitive advantages?
3. Could the company consider other advantages that would enable it to reach more customers or charge them more to subscribe?
Think about the Internet generation and the culture of getting things for free .
Answer This:
Describe the Internet generation’s expectations with respect to music.
How does Spotify meet these expectations and how has this response fueled its success?
How has Spotify’s response to the expectations of this generation been part of its difficulty achieving profitability and adequately compensating music rights holders?
