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.

Which of the following accurately characterizes Spotify$$s resource weaknesses and competitive liabilities?

Select $$yes$$ for the resource weaknesses that are accurate and choose $$no$$ for those that are not.

For Spotify to distribute music, the company must pay for two licenses; a sound recording license agreement, and a Musical Composition License Agreement.

$($Click to select$)$

Other streaming music companies can imitate Spotify$$s noncore competencies.

$($Click to select$)$

Streaming services are dependent on the speed of a customer's connectivity to access such services.

$($Click to select$)$

Spotify is exempt from royalty payments to artists.

$($Click to select$)$

Spotify has too many free tiers making it difficult to generate a profit.

$($Click to select$)$