Q 3: Select any company of your choice.

Describe the
business of the company in brief. Identify internal
environmental factors impacting the business. Marks 10
Spotify Technology S.A.- Spotify is a digital music, podcast, and video
streaming service that gives you access to millions of songs and other
content from artists all over the world. Founded in 2006, the company's
primary business is providing an audio streaming platform, the "Spotify"
platform, that provides DRM-restricted music, videos and podcasts from
record labels and media companies. As a freemium service, basic features
are free with advertisements or automatic music videos, while additional
features, such as offline listening and commercial-free listening, are
offered via paid subscriptions.

Launched on October 2008, the Spotify platform provides access to over

50 million tracks.[7] Users can browse by parameters such as artist,
album, or genre, and can create, edit, and share playlists.

Factor 1 Value System: Spotify offers five primary value propositions:

accessibility, pricing, customization, performance, and brand/status.

Factor 2 Mission and Objectives: Our mission is to unlock the potential of

human creativity—by giving a million creative artists the opportunity to
live off their art and billions of fans the opportunity to enjoy and be
inspired by it.

Factor 3 Organisation Structure: Spotify Technology S.A.’s organizational

culture directly reflects the diversity of the company’s human resources.
This diversity is based on the variations among the cultural backgrounds
of workers in the company’s offices and operations in different markets
around the world. As a leading music streaming service provider, the
company applies its corporate culture to motivate human resources to
ensure effective core competencies for value creation via the online
platform, which is a factor in Spotify’s value chain, resources, capabilities,
and core competences determined through the VRIO/VRIN framework. The
behavioural implications of the company’s organizational culture affect
strategic management effectiveness, as employees’ values and beliefs
and the organization’s customs and traditions determine how strategies
are implemented to grow a competitive music streaming service. Spotify’s
corporate culture, along with various aspects of organizational design,
creates a work environment that favours diverse contributions to ensure
innovation and product-market alignment for expanding the online
service.

Factor 4 Corporate Culture and Style of Functioning of Top Management:

Spotify is truly at the forefront of creating an awesome company culture
of the future. It’s no secret that the company has made strides in
innovating on employee experience, even when it grew from 300
employees in 2011 to 3,000 in 2018. Spotify prides itself on creating the
best social experiences for a wide range of employees and fostering
inclusion through its practices.

And this forward-thinking mentality has paid off. The streaming service
giant has racked up over 180 million users (including over 75 million
paid), and over $5 billion in revenue in 2017. It’s no doubt the company
culture made a significant contribution to its rapid growth. The company’s
Glass door reviews point to a largely positive employee experience,
boasting an impressive 86% CEO approval and 76% employees likely to
recommend working there to a friend.

Factor 5 Quality of Human Resources: Their Swedish approach to

leadership inspires businesses and politicians the world over. This team
takes full advantage of its members’ skills and their passion for attracting,
developing and retaining the right employees.

Factor 6 Physical Resources and Technological Capabilities: Spotify’s

strong brand is based on the popularity of its music streaming services.
Even though the company started its international expansion in 2009, the
business has steadily expanded to offer its digital media services to a
continually increasing user base.

Wide reach and easy accessibility of media streaming services is a value

proposition and another strength relevant in this SWOT analysis of Spotify
Technology S.A. This internal factor involves the ability of the company to
provide its streaming services to consumers around the world..

Another strength of Spotify is the demand-side economies of scale of its

business. Such economies of scale build on the other strengths shown in
this SWOT analysis. For example, the strong brand and wide accessibility
of the online service leads to a major share of the market and the
correspondingly large user base. This business condition strengthens
Spotify through the business size needed to reach effectiveness and
efficiencies through economies of scale. This SWOT analysis stresses the
benefits of such an internal factor, including the reduction of fixed costs
per account or per customer, and optimization of profit margins. Through
this business strength, Spotify has reached profitability despite payments
to rights holders, such as artists or production companies, and other
costs.