Menu Close

Spotify Porters Five Forces Analysis 2018

Mariam Peyton
Latest posts by Mariam Peyton (see all)

    The music streaming industry is a prominent oligopoly with major players Spotify, Apple music, Amazon music, among others. Spotify is the largest music streaming service accounting for 47.8% market share based on streams with major competitors Apple having 10.6% market shares respectively (Wagner 2018). The music streaming service industry is very competitive and by using the Porters five forces analysis below, we discuss major ways in which the competition has affected the growth of Spotify highlighting major threats, opportunities and points at which the competition is most intense. 

    HARVARD
    Magezi, K. Prudence (2018) "Spotify Porters Five Forces Analysis 2018" 123 Writing [Online] at https://www.123writing.com/sample/spotify-porters-five-forces-analysis-2018

    APA
    Magezi, K. Prudence. 2018. Spotify Porters Five Forces Analysis 2018. 123 Writing. Retrieved from https://www.123writing.com/sample/spotify-porters-five-forces-analysis-2018

    Spotify Strategy Case Study


    Key Learning Outcomes

    By the end of the case, students should be able to:

    • Use Porters five forces model to analyse an industry on the basis of the five competitive forces.
    • Analyse the global music streaming industry and how the five forces have affected Spotify and rival firms and the impact on industry structure, attractiveness, and profitability.
    • Understand how Spotify has managed to defend against intense competition from Pandora, Apple and Amazon music and the strategies it uses to create 'blue oceans' that are defensible, helping it capture market share and maintain competitive advantage.

     

    Analyse the micro environment of Spotify and the global music streaming industry using Pestle, Swot and Porters five forces.

                                              ***Updated version***See latest here Spotify Porters Five Forces Analysis 2021

    1.0 INTRODUCTION


    The music streaming industry is very profitable but also very competitive with many players majorly apple music, Spotify, Amazon and Pandora. Spotify is the world’s leading digital music streaming service that gives people access to millions of songs, videos and podcasts from artists all over the world (Willings 2018). Spotify has an average of 71million global monthly subscribers with close competitor Apple music having 40million subscribers (Richter 2018). Spotify also has a global market share of 47.8% with major competitors pandora and Apple Music having 21.6% and 10.5% market shares respectively based on their streams (Wagner 2018).

    1.1 Bargaining Power of the buyer

    According to Grant (2016), the ability of buyers to drive down the prices they pay is dependent on two factors: their price sensitivity and their bargaining power relative to the firms within the industry. Price sensitivity is normally determined by factors like product differentiation, competition, and significance of the product to the consumer. However, consumer bargaining power is determined by factors like cost and ease of switching to purchase products from Spotify competitors like Amazon music, Google pay or Tidal, as well as buyer information regarding prices music streaming services in the market. Considering the above factors, we can conclude that a Spotify subscriber has high bargaining power because of the availability of many streaming services like Apple Music, Tidal, Pandora, which offer similar high-quality material (music, videos, podcasts) in the same price range making switching costs between different streaming services very minimal. For example, Apple Music and Spotify both have monthly subscription fees of $9.99 or $14.99 for family membership (Harper 2018) meaning there’s zero switching costs hence giving the customer a wide variety of streaming services to choose from with no additional costs.

    Already a Subcriber?

    Forgotten your password? Click Here

    Not a Subcriber?

    GET UNLIMITED ACCESS

    TO ALL OUR FREE SAMPLES

    FOR
    FREE

    Services We are Offering

    We are more than a free study and revision tool.
    We also provide on demand research and custom writing services.

    Make writing your assignment paper as easy as 123!

    123 Writing is the #1 exam revision and assignment study platform in the UK.

    Get unlimited access to answered student essays, assignments, past exam questions and sample coursework written by qualified academic writers & tutors.

    Our Standard subscription typically retails for £299.88 a year.

    Today, you can join at 80% discount.

    Here’s a full breakdown of everything you get as a Standard or Premium subscriber...

    » Get access to our database of more than 5,770 answered premium strategy case studies

    Get unlimited access to a robust database of premium business strategy case studies including more than 5,770 fully answered sample strategy frameworks and tools such as pestle, value chain, value matrix, porters five forces, Ansoff’s matrix, etc., authoritatively written and tailored for student revision, assignment preparation and transformative business research. Our strategy case studies are especially suited for university students wishing to apply strategic frameworks to real-world situations, company cases or simulations. All our strategy case studies come with teaching notes and learning outcomes, making them effective as coursework revision, and essay study help tools.

    » Free access to past exam & assignment answers

    Revise and prepare for exams and coursework with our fully answered exam notes and sample assignment papers. Furthermore, get quick on-demand answers to past exam question and assignment questions from our writers. Exam answer notes come with personalized lesson plans, and detailed study notes complete with detailed explanations of each answer, for maximum exam revision and assignment preparation. This tool is perfect for readers struggling with exam preparation & assignment study.

    » Get extra assignment related help from our writers & tutors

    Achieve high grades with a little extra assignment related support. Get extra help with your essays, assignments and general coursework, from our knowledgeable writers and tutors who will provide extra assistance when required for all academic related tasks including proofreading, grammar editing & correction, citations, referencing, etc. at no extra cost for standard and premium subscribers. All our standard and premium subscribers receive free proofreading services, which will include a check for punctuation, grammar, sentence formation, typographical errors, formatting, errors and other consistency issues (broadly).

    » Get free assignment & essay writing help worth up to 7K words

    Commission an on-demand essay, or assignment title from our knowledgeable writers and tutors on any subject matter. Get up to 7,000* words in on-demand custom assignment help from our writers who can assist with difficult topic in classical business literature. (* 7,000 free word credit exclusive to premium members).

    » Fast & speedy answers to on-demand case solutions & assignment questions

    Make use of your available free word credit (up to *7,000words) to commission on-demand custom case solutions, case study assignments and receive fast & speedy personalised answers. Receive timely and fast plagiarism-free answers to assignment questions or case solutions in as little as 1-2 business working days. Topics include Strategic Management, Marketing, Business Management, Economics, Operations Management, Organization Studies, International Business & Management, Human Resource Management and more. (* Exclusive to premium members).

    » Get exclusive Q&A sessions with our subject matter writers

    Ask our qualified, vetted and knowledgeable writers up to *12 essay, assignment and coursework related questions annually and receive accurate, clear, and detailed answers including step-by-step explanations briefs that are easy to follow. (*Exclusive to premium members).

    » Free access to test bank questions & answers, study notes and practice quizzes

    Test your knowledge on any subject with our quick quizzes and test banks for maximum retention after revision and studying. Test Bank contains questions in a variety of formats including multiple choice, true/false, short answer, and essay questions.

    » Free access to video tutorials & study packs

    Get free access to exclusive video tutorials to common subject topics. Our subject matter video tutorials, study notes and study packs have been created to help students learn and understand basic course module materials, as well as prepare students for their coursework assignment questions, essays and exams. Our video tutorials, study notes and study packs can be organized by topic, textbook or Question &Answer.

    » Access to textbook chapter reviews and answer solutions

    Get access to chapter reviews of popular business books, broken down in easy-to-understand simple concepts with simplified English. If English is not your first language, this service will make revising for essay assignments and exams as easy as 123 (Exclusive to premium members).


    error: Copying this content is in breach of our Terms and conditions.

    WELCOME

    You are now Logged in.

    To access your Dasboard please click the dashboard button in the Main Menu

    Basic

    Annual pass for 12 months​

    Unlimited access to answered essays & past assignments
    Free Q&A with our professional writers
    Unlimited access to more than 6,000 answered premium strategy case studies
    Word Credit for On-Demand custom essays & assignment help
    Extra Word Credit worth upto 2000 words for On-Demand assignments
    Free access to exam revision notes & coursework preparation study guides

    £0

    Premium

    ***Paid annually at £179

    Unlimited access to answered essays & past assignments
    Free Q&A with our professional writers
    Unlimited access to more than 6,000 answered premium strategy case studies
    Word Credit for On-Demand custom essays & assignment help (5000 Words Free)
    Extra Word Credit worth upto 2000 words for On-Demand assignments
    Free access to exam revision notes & coursework preparation study guides

    £14.99

    Popular

    Standard

    ***Paid annually at £59.88

    Unlimited access to answered essays & past assignments
    Free Q&A with our professional writers
    Unlimited access to more than 6,000 answered premium strategy case studies
    Word Credit for On-Demand custom essays & assignment help (2500 Words Free)
    Extra Word Credit worth upto 2000 words for On-Demand assignments
    Free access to exam revision notes & coursework preparation study guides

    £9.99£4.99

    Premium

    ***Paid annually at £179

    Unlimited access to answered essays & past assignments
    Free Q&A with our professional writers
    Unlimited access to more than 6,000 answered premium strategy case studies
    Word Credit for On-Demand custom essays & assignment help (5000 Words Free)
    Extra Word Credit worth upto 2000 words for On-Demand assignments
    Free access to exam revision notes & coursework preparation study guides

    £14.99