Learning Objectives & Study Questions $($MGT $4440-$ Spring $2024)$

Case $2-$ Spotify: Face the Music

To continue our study of Strategy and Competitive Advantage in a global

To re$-$visit the traditional frameworks$/$vocabulary of strategy.

To analyze the landscape of competition in the streaming music industry.

To study an example of a Multi$-$Sided Platform that leverages Network Effect.

To observe a firm making strategic "trade$-$offs" as it positions itself for a char landscape of technology, regulation, and competition.

Describe the strategy scenario facing Spotify at the beginning$/$end of the case:

a$.$ Address the questions$/$challenges presented in the opening section $($pages

b$.$ What is the Future of Spotify $($pages $17-19)?$

Describe the landscape of competition in the streaming music industry:

a$.$ Threat of Substitutes

b$.$ Bargainifig Power of Buyers

c$.$ Opportunity of Complements, or Threat of Complements?

d$.$ Bargaining Power of Suppliers

e$.$ Nature of Rivalry and Threat of New Entry

Much like Uber, eBay, and YouTube, this case is an example of a Multi$-$Sided Platform that leverages Network Effects. Describe and analyze the primary element of Spotify's business model:

a$.$ Discuss the logic of the "freemium" pricing strategy.

b$.$ What is the value$-$proposition for the customers $($both paid and free$)?$

c$.$ What is the value$-$proposition for the advertisers?

d$.$ What is the value$-$proposition for the artists and record labels?

Make some observations about the early years at Spotify. Why was this business abl to find a position on the landscape, and grow? What can we learn from Spotify's ear years of entrepreneurship and disruption?

What is global about Spotify's business model and strategy? Identify some examples of the firm "crossing borders" in pursuit of growth and competitive advantage?