Spotify Technology in $2022$: Will Its Strategy Lead to Profitability?

The case is intended to introduce students to a global company$$s evolving strategy with a freemium and subscription business model. This case works especially well after covering Chapters $16.$ Students will be able to utilize concepts from Chapters $1,2,$ and $5$ in evaluating the company$$s business model and strategy, select tools from Chapter $3$ in assessing industry attractiveness and competitive rivalry in the industry, Chapter $4$ company situation analysis tools, and Chapter $6$s discussion of strategies for strengthening a company$$s competitive position.

Spotify Technology in $2022$ case should generate student interest since the company will be well$-$known among students with many being subscribers to Spotify or a similar music streaming service. The case should provoke a well$-$thought$-$out discussion of the appeal and future of streaming services, namely in the music industry.

What are the value chain components of Spotify as a streaming music platform and how does the company deliver value?

Select the best response$($s$)$ from the options provided.

Check All That Apply

The music streaming market and digital music platform are evaluated using a VRIO and VRIN analysis, Value, rarity, inimitability, and organization are used in the VRIO framework. Nonsubstitutability $($vs$.$ organization$)$ is used in the VRIN framework.The music streaming market and digital music platform are evaluated using a VRIO and VRIN analysis, Value, rarity, inimitability, and organization are used in the VRIO framework. Nonsubstitutability $($vs$.$ organization$)$ is used in the VRIN framework.

The organization of the VRIO framework encompasses the company$$s organized management systems, processes, structures, and culture.The organization of the VRIO framework encompasses the company$$s organized management systems, processes, structures, and culture.

Spotify$$s brand is an organizational resource that provides a sustainable and long$-$term competitive advantage.Spotify$$s brand is an organizational resource that provides a sustainable and long$-$term competitive advantage.

The company$$s major market share is also an organization core competency. As the user base population increases, so does the service attractiveness and the value chain benefits to its users.The company$$s major market share is also an organization core competency. As the user base population increases, so does the service attractiveness and the value chain benefits to its users.

Spotify$$s noncore competencies considered valuable include a narrow market reach, limited accessibility, wide reach to online advertisers, IT assets, and the company$$s creative and empowering culture.Spotify$$s noncore competencies considered valuable include a narrow market reach, limited accessibility, wide reach to online advertisers, IT assets, and the company$$s creative and empowering culture.

The company$$s partnerships with a limited number of right holders, and operational presence in major markets, make up Spotify$$s non$-$core competencies. The company$$s partnerships with a limited number of right holders, and operational presence in major markets, make up Spotify$$s non$-$core competencies.

Spotify$$s partnerships with device manufacturers are an organization core competency identified in the value chain. This capability weakens the company$$s market position.Spotify$$s partnerships with device manufacturers are an organization core competency identified in the value chain. This capability weakens the company$$s market position.