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.

How do you characterize Spotify$$s growth strategy? Have they achieved a stronger position and how?

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

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Spotify$$s growth has grown in line with user growth and the gross profit has tripled over the last five years.Spotify$$s growth has grown in line with user growth and the gross profit has tripled over the last five years.

Superior data collection provides Spotify with a competitive advantageSuperior data collection provides Spotify with a competitive advantage

Spotify$$s push into podcasting aligns with vertical integration to publish and distribute content and potentially become the preferred platform for podcast discovery.Spotify$$s push into podcasting aligns with vertical integration to publish and distribute content and potentially become the preferred platform for podcast discovery.

Spotify has been able to constrain its competitor$$s ability to grow on a global scale, they are present in $45$ markets as compared to Amazon which is present in $35$ markets.Spotify has been able to constrain its competitor$$s ability to grow on a global scale, they are present in $45$ markets as compared to Amazon which is present in $35$ markets.

Although the music streaming industry is in a decline stage, Spotify$$s goal in the next two years is to deliver more than $5$ percent revenue growth.Although the music streaming industry is in a decline stage, Spotify$$s goal in the next two years is to deliver more than $5$ percent revenue growth.

Spotify$$s growth strategy is based on entering more markets excluding Asia and the Middle East.Spotify$$s growth strategy is based on entering more markets excluding Asia and the Middle East.

A digital growth strategy has helped Spotify take the number two spot in the music streaming industry.A digital growth strategy has helped Spotify take the number two spot in the music streaming industry.