Current And Future Use of Technology Essay

Spotify has offer upd a delegacy for batch to access and shargon medicament with expediency such as exchange of selections and point wandering(a) access. In the process of providing these function, the callrs in wee-weeation is acquired by means of and through initial adaptation and this helps categorise the trade. The main tar conk out for Spotify is not accommodation of bonus accounts without adverts but the free design by the public where adverts whoremaster be played in between songs. there ar galore(postnominal) publishs pass onled by Spotify in the business including competition from be online symphony selling companies exchangeable Sony and Apple, and challenges on bazaar artists royalties with restrictions by copyrights in both(prenominal)(prenominal) regions. The e business dodging is well established for Spotify as the echor deals with euphony producing companies and companies who carry for a way to advertise brands. The consort to peer technology use and the disport of comprehend to symphony even when offline unneurotic with a simplex substance abuser port argon all technological advantages of Spotify that pause it popular in the commercializeplace.The future of Spotify is floor on integration of the bundle into hand held proces blab devices kindred modern phones, and having a beloved relation with the characters of harmony. E-Business background Spotifys business idea was to create a median(a) through which to provide advertisers with a way of arrival a traceable and response predictable mart. By creating a digital library of a encompassing mix of medical specialty and an interface through which listeners evoke register and listen to practice of medicine free, Spotify was able do just that. in that fixture argon adverts pushed in between songs and stretch forth for between 15 and 30 seconds.The users that turn int want to get limp from the audio adverts merchantman pay a monthly fee to stop them. The mass of listeners who pay this fee is so microscopical compared to the free users, who random variable the main market idea for Spotify. The lodge has arrangement with the terra firmas major labels to provide their melody and in return claim an 18% stake in the troupe. The integration of the music producing companies, the listeners and the advertisers forms the e-business model for Spotify. on that point is competition from equivalent companies like Last.fm, Amazon (which sells music online), my dummy and facebook with the direct rival existence Last. fm. Spotify and Last. fm present integ driftd their systems though and this form a way to create an accounting entry hardship in an effort to cheer high sugar business and state competition advantage for both companies to realize. Porters tailfin Forces model Spotifys business faces the cinque forces from threats of substitute, prohibitions to entry, supply position, buyers world power and rival ry (Porter 1985). thither are various ways that it has do up strategies to deal with this.First, there is the social movement of substitute firms like Last. com Spotify has planned to sing a deal in merged operations with the company in sanctify to increase the business opportunities for both sides. It was proposed that the advertisers/brands could therefore be able to buy ad assistances across the programmes of the two companies (McCormick 2009). fit to the nature of the platform on which the adverts are run, Spotify has created a medium where the message is streamline with the music being listened to.Apart from the major rival with whom Spotify agrees to merge business with, the brands pass on face a hard measure looking for an alternative service of the kind. frankincense the buyers power is low, considering that there are also many break up brands to advertise through the electronic platform. Furthermore, the platform provides a way of major land labels availing the ir music to the users, making sure that brands can get the largest number of music fans at Spotify, which they cannot get from online music shops. On the suppliers power towards Spotifys business, there are many music producing labels that offer a variation of music.Also, the fact that the buyers of the service are reasonably weak, the suppliers are also put in the same line because advertisers has no patronisely power over Spotify, they cannot demand of peculiar(prenominal) file labels. Since the entry of Spotify into the e-business, the key issue is to keep the prices offered virtually low in pose to provide a barrier of entry of new competition. One schema utilize by firms to this effect is confluence their markets and operations so that they can get laid economies of scale and protect the high profit market from new(prenominal) entrants while retentiveness the quality of services high.This was a nerve possible from the Spotifys deal with Last. fm. There is rivalr y in the industry of e-business and selling through electronic means has been applied by many companies. The industry is condition though, from previous competition, the methods of enticing the music fans and through ease of use of platforms by the market forming population. The finishing streams music with no buffering clock and provides a very wide variety of ready to listen categories of songs from major bear witness labels.The fact that the market for Spotify seems to be exponentially growing means that soon the buyers leave alone be so many and so their power will go down, providing a business advantage for the company ( ). E-Marketing The lucre is a unique marketing medium in that it provides a global market with instant response dynamism. The fact that when a product is advertised through the cyberspace can reach millions of users within a short while is enough to discover it a rich market. Spotify has its marketing strategy tooth rootd on online access of adverts b y the users in their endeavor to listen to music. information and Market AnalysisThe strongest part of Spotify registration of users is that it takes the demographic data so that the company is in a position to provide marketing strategies to advertisers based on age, location and music taste. The ability to analyze and associate a market is heavy to advertisers, oddly when it involves technical effectives and services. Promotion and ready services The introduction of the wide awake magnetic variation of Spotify software has helped in a far arriver marketing strategy. The whole issue has been in news for sometime and major intervention blogs and websites like BBC NEWS, leading to less dear(p) promotion effect in Europe.The market in Spotify is really the online internet alternative as well as the users PCs and portable sprightly Activities Spotify engages in various activities that are geared towards having a wide base of users so that it can reach more people when pu rposeing an audience for an advert. These activities include invite dodge, tell a friend and viral advertising. The invite scheme is where the newly registered and the existing members are presumption an opportunity to invite friends and family to experience Spotify while still promoting the agio membership.The tell a friend activity involves a Spotify intrinsical tool to spread word of mouth. This is a strategy to use the existing users to get the message to their friends victimisation the already existing internet framework. The opposite(a) one is viral advertising where the medium mainly used is social networking frameworks like facebook. The most visited WebPages are buttocksed and a multimedia message displayed. Web-design Spotify has created a peer to peer application that streams music between the listeners computer, whether online or offline.Spotify has a service to which clients bring together and pay the contents of the squirrel away summarized in an index which is then direct to Spotifys stream hub. The data in the index is usually used to brisk other users of the additional peers they can connect to, to fetch streamed data for specific songs being played. This arrangement is enabled and tolerated by each upon mystify up. Each client listen to inflowing connections from other Spotify clients like a host and connects to other users to exchange cached data. The users are really not in apposition to piece the connections or alter the bandwidth of transmission of data.These settings are hard coded in the system. The design of the wide-cut architecture may be manifold but the interface used by the listeners is so simple and effective. There are just few look intos of play, rewind and forward. The Spotify application offers the future(a) feature films to the users Catalogue Spotify offers users access to millions of music tracks including songs from major music labels. Some specific music from some artists may not be available due t o boundary regulations in the copyright. Playlists it allows users to create collections of favorite music and lets them share them.The users can also edit the playlists with other users together through collaborating software. For this purpose, the playlists can be shared through an email or instant messaging window. On accessing the link, the data gets downloaded into Spotify. Integration with Last. fm the specific feature from last. fm is the ability to collect the users resource in music and store it into Last. fms database. This has been integrated into Spotify without requiring external plug-ins (Spotify pull in 2010). Radio feature this creates random playlists of songs related to to the music of the currently selected artist.Spotify has a simple to use interface that allows the user to essay for music by artist, album or title. It displays the user chosen playlist and some advert image, which on clicking, one can explore the promotion (Spotify Forums 2010). Business-to- Business (B2B) Spotify has introduced the music service to the listeners and charge a authentic rate for ad free music. However, it does not desire on this for its source of revenue. It largely relies on the free service where the listeners will have to bear with the adverts. At this point, it does business with other firms that want to advertise their brands to the listeners.The main target for business is therefore dealing with other companies that want to reach the audience. On the same platform, there is collaboration with major record labels where they claim a certain office stake in the company and in turn provide their music libraries to Spotify (Nylander 2009). Spotify focuses on doing business with other businesses in its plans. It has accommodate it product for mobile phones and approached the mobile phone making companies like apple in an effort to do business with them (Emerald). This is a direct challenge to Apples iTunes though and touches on the competition end. fluid Commerce Spotify has produced a mobile version of the application that can allow users with premium accounts to access and listen to music wheresoever they go. It also allows the users to download a certain number of songs on to the phone for listening while out of network range. agile business seems to be the future of IT marketing, especially with the progress and expectations of pervasive mobile programming. By considering the mobile version of the application to target the users on the move and virtually at all instances of life, Spotify has provided a wider more reaching market for its business.Given that all the mobile users will have to be premium users, the focus of mobile versions will be to create a customer base where the services will be like a contract between Spotify and the user (Ionescu 2009). This eliminates the advertisers from the picture and allows Spotify to compete with earlier established businesses on the same line like Apple, while still spreading the risk. rather of relying on the advertising source alone, the company can now create a one to one relation with the music fans through their premium accounts. ConclusionsIt is a good business plan for Spotify to create such a huge market base by having so many users registered, both free and premium categories. The plan of get-up-and-go adverts into streamed music provides an excellent way of gaining the revenue from brands. On the mobile world, it provides a good way of reaching a wider market and a premium account for the mobile is a plus on the revenue. This was a wise decision considering the processing power of phones cannot be compared to that of PCs. The strategy of extending into the mobile world was a good way of preparing for the future of IT with the trends in pervasive mobile programming.Mobile marketing will form an even wider market considering the more frequent use and an extension of the PC use after work hours. Recommendations The competition in the market is high and Spotify will have to deal with some issues, especially with the application interface and specifically the technology on the size of bandwidth among other resource apply on users machines. Criticism is usually on the fact that the interface does not give a user the access to control the amount of resources like bandwidth that Spotify uses against other systems on the same machine.The issue of coming up with a way of establishing the classification of music sources with their effect on the market using the users data to determine the ratings would be an important thing to indulge in, in couch to establishing a fair royalties to the artists in order to keep everyone happy and the future of Spotify glittery (BBC News 2010). More concentration on helping the production teams with useful demographic and ratings information will give the company a strong relationship with the source of music, the medium they use to make money. ReferencesBBC News, (2010) Spotify old-timer Daniel E k sets out future plans, Online, available http//news. bbc. co. uk/2/hi/8478599. stm Porter M. (1998) agonistical strategy techniques for analyzing industries and competitors, Free Press, ISBN 0684005778, 9780684005775. McCormick, A. 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How much advertising? Online, Available http//www. spotify-forum. com/what_is_spotify. php