Task 5
- 1. S.W.O.T Analysis – Structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. Strengths – Spotify is already used by so many people but mainly on computers and occasional phones but because it’s known for being good then people would be likely to purchase the product. - We know that portable music devices are always well thought after and over 40,000 are sold per year. - You don’t have to worry about downloading songs as they are always there to listen to. Weaknesses –iTunes has around 600 million users and so will cause problems as people are so used to apple products and don’t always agree with change just stick to what they know so it would just really be completely new customers. - If you are out area with no signal then you can’t listen to music, which is a down side, and if you don’t have a lot of Internet to use then again you might never be able to use it. - The fact that spotify charges you monthly could be a put off as you might not listen to music constantly so iTunes could make more sense to use as you only buy the songs you like to listen to and can listen to them forever if you wish. - Also there are adverts after each song and you’re only allowed to skip more than six songs in an hour which is irritating and if this changed would save a lot of issues. - Because you are not downloading the songs to the device you have to stream which can be a problem as not everywhere has the same coverage and so can take a while to buffer and can get annoying since on iTunes it takes around 30 seconds to download a song if that.
- 2. Opportunities –There is an opportunity to put an update on apples newest products and then come across as better. - If you were to offer more deals than what apple do then people might look differently at your company and prefer spotify over apple as they do charge more for each song although do take money off albums. - Because you have to pay for spotify you could look at the opportunity for gift cards to allow people to buy them as gifts like what apple do for songs and apps, as they might be more inclined to look at buying spotify and the new product made with it in mind. Threats –Spotify would be able to cause threats upon iTunes so long as the prices that you were offering were more reasonable because even at 99p a song by iTunes the price you pay monthly for spotify might not make the swap worth it or if they’re deciding which they feel would be best for them. - A threat on this product is that apple have apps on the well thought of and well knock iPod’s and iPhone’s and iPad’s that are similar but free and allow you to get the songs you want for free without the fuss of internet usage.