Analyze Pandora using the value chain and competitive forces models. What competitive forces does the company have to deal with? What is its customer value proposition?$2.$ Explain how Pandoras freemium business model works. How does the company generate revenue?even higher rates when its current royalty contracts expire in $2015.$ About $61$ percent of Pandoras revenue is currently allocated to paying royalties. Advertising can only be leveraged so far, because users who opt for free ad$-$supported services gener$-$ ally do not tolerate heavy ad loads. Apple launched its iTunes radio service for the Fall of $2013$ that will compete directly with Pandora. ITunes radio has both free ad$-$supported options, and a subscription service for $$25$ per year, undercutting Pandoras annual subscription fee of $$60.$ Can Pandoras business model succeed?Sources: Michael Hickins, Pandoras Improved Algorithms Yield More Listening Hours, Wall Street Journal, April $1,2014$; Pandora, Pandora Announces May $2014$ Audience Metrics, June $4,2014$; Natasha Singer, Listen to Pandora, and It Listens Back, New York Times, January $4,2014$; Ben Sisario, A Stream of Music, Not Revenue, New York Times, December $12,2013$; Glenn Peoples, Pandoras Business Model: Is It Sustainable? Billboard.com, August $7,2013$; Kylie Bylin, Can Pandora Find A Business Model That Works? Hypebot.com, accessed August $25,2013$; Paul Verna, Internet Radio: Marketers Move In$,$ eMarketer, February $2013$; Jim Edwards, This Crucial Detail In Spotifys Business Model Could Kill Pandora, Business Insider, July $11,2012$; and Sarah E$.$ Needleman and Angus Loten, When Freemium Fails, Wall Street Journal, August $22,2012\mathrm{.}3.$ Can Pandora succeed with its freemium model? Why or why not? What people, organization, and technology factors affect its success with this business model?